102.22/8–149: Telegram

The Secretary of State to the Consul at Shanghai (McConaughy)

1511. Dept suggests possibility in negotiations ex-Navy employees that any agreement payment for specified periods might provide for additional amounts at an adjusted rate based on rise in rice or commodity prices. This wld enable payment if necessary of part of larger amounts requested but at a basic rate which would not set unfavorable precedent Amer firms and individuals. Navy states it is not sure this procedure allowable. However, concrete figures passed from AstALUSNA to Navy cld be given consideration. Such offer shld not be made until Navy auth obtained.

Acheson