893.24/12–2346: Telegram

Major General Donald H. Connolly to Mr. John B. Stetson, Jr. 10

88373. 1. Arrangements now being completed11 for establishment by the US Treasury of two funds for 25 million dollars and 5 million dollars respectively to the credit of the Government of the Republic of China for the fulfillment of the purposes as provided in Article 3 of August 30 Agreement. 2. Consideration being given to the proposal for a revolving fund to be placed in the custody of Bosey12 expendable by Bosey with withdrawals replaceable as the appropriate [Page 1244] required documentation is supplied by Bosey. 3. Meanwhile we suggest Bosey advance such funds as necessary to avail and expedite movement of surplus with the assurance hereby given that Bosey will be promptly reimbursed upon receipt of certifying documents. 4. It is suggested that the exact form of documentary requirements for payment or reimbursement await Kendall13 and Stetson’s arrival Shanghai early January as well as determination as to the constitution and function of a Board of Review at Shanghai as suggested paragraph 3 our cable of 9 November.14 5. Suggest you share the above with Bosey and advise soonest whether these arrangements and assurances remove all obstacles in way of expeditious procedure.

[File copy not signed]
  1. Central Field Commissioner, Pacific and China, OFLC, at Manila.
  2. In telegram No. 89641, January 14, 1947, Maj. Gen. Connolly informed the OFLC Shanghai Office that agreement had been reached with the War and Treasury Departments on immediate establishment of the two funds.
  3. Board of Supplies, Executive Yuan, the Chinese agency charged with taking possession of and distributing surplus property.
  4. Charles B. Kendall, Deputy Director, Legal Division, OFLC.
  5. Supra.