893.24/3–2846: Telegram
Brigadier General Bernhard A. Johnson to Mr. Thomas B. McCabe and Mr. H. Wendell Endicott
26846. 1. Revised Mar contract your 81917 satisfactory to all parties with the following change. Paragraph 7a (1) will read as follows:
“Such goods and services shall not exceed 25 percent of the capacity or facilities of the Kiangnan shipyards or dockyards and 25 percent [Page 1078] of the capacity or facilities of the Tsingtao shipyards or dockyards, at any one time. In this connection, such goods and services may be allocated by mutual agreement of the parties to the Kiangnan, the Tsingtao, or any other shipyard or dockyard now existing or which may subsequently be in operation under control of China and of adequate capacity to furnish goods and services at the time demanded.”
This addition of the Tsingtao yards enlarges the contract, approximately doubling the dollars in the deal and doubling the service possibilities option in the future and is desired both by General Marshall and the Navy. The Chinese Government are delegating to one man the power to sign the contract for both the Kiangnan and the Tsingtao yards.
2. The Tsingtao want list97 will be airmailed you in the next few days via special pouch and request speedy action on finding the supplies, declaring them surplus and shipping them.
3. I believe that General Marshall will be very interested in the final approval by all parties of this deal. He should be advised.
4. Please hasten the declaration of surpluses and the shipment of the supplies of the Kiangnan want list to Shanghai, consigned to the Kiangnan Dockyard, Admiral P. T. Mar. Mar is desirous that each shipment or each schedule of goods or supplies under this contract be insured. Can those arrangements be made by us in Washington for the account of the Kiangnan Dockyard? As soon as possible you should advise us which items cannot be supplied from surpluses.
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