893.24 FLC/9–2148: Telegram
The Acting Secretary of State to the Ambassador in China (Stuart)
1356. FLC here concurs position taken Luboshez, particularly parts 2 and 4 SFLC 3267.36 (ur 1742 and SFLC 3267.)
On that basis FLC approves tentative agreement set forth para 1, 2, 3 and 4 ur 1742, provided effort have declarations reviewed does not go beyond Pacific command level since experience here indicates Army would not give directions local commands contrary their recommendations. Again point out no concession need be made China regarding cut off date, and if necessary unilateral action may be taken by U. S. on basis statement from owning agencies no further surpluses available. Refer para 1, Art 1, Bulk Sale Agreement.
Regarding para 5 1742, FLC agreeable [to] amendment covering deletion foil named islands: Eniwetok, Kwajalein, Majuro, Makin and Roi. This considered equitable action view previous arbitrary withdrawal Eniwetok surpluses. However, point should be made no obligation exists to amend agreement because no charge made for Eniwetok surpluses. Therefore, some concession from Chinese should be obtained if possible.
Connection [with] present negotiations war obligation settlement, Dept needs advice Emb present view possibilities success Nanking negotiations outlined para d Deptel 1226, conference agenda. Could above proposed amendment be used bargaining point obtain Chinese agreement waiver disparity clause?