103.9169 [/8–2045]: Telegram
The Secretary of State to the Ambassador in China (Hurley)
1287. The President has directed that the following action be taken in regard to future Lend-Lease operations: (From FEA Crowley for Stanton)
- a.
- No new contracts will be entered into for goods to be furnished under Lend-Lease except for such items as the Joint Chiefs of Staff may approve for payment out of military appropriations.
- b.
- Countries with which 3(c) agreements are in effect will take and pay for goods involved in contracts yet to be completed, goods awaiting shipment, those in transit, and inventories abroad.
- c.
- Countries which have not entered into 3(c) agreements may obtain goods now in process of manufacture, in storage, awaiting shipment, being shipped, or in inventory abroad, upon their agreement to pay for them on such terms as may be determined by this Government.
- d.
- All uncompleted contracts for goods not to be delivered under (b) and (c) above shall be immediately reviewed to determine whether their completion would be in the best interest of the U.S. Government and, unless so determined, such contracts will be cancelled.
Each of the foreign governments concerned will be informed of the action taken and no release of the information outlined herein should be made, of course, until official notification has been received by such governments.
This action does not pertain to cash reimbursement transactions. Requisitions on a cash reimbursement basis may be processed to procurement agencies for 60 days following V–J Day.
A letter addressed to Dr. Wei Tao-ming, Chairman of the Chinese Supply Commission in Washington has been sent which reads as follows:
In view of the termination of hostilities, the Foreign Economic Administration is desirous of entering into discussions and negotiations immediately with you relating to the discontinuance of its Lend-Lease [Page 1132] aid to your government in an expeditious manner which will best promote the mutual interests of our respective Governments and which will be consistent with the provisions of the Lend-Lease Act. I suggest in connection with such discussions and negotiations with respect to the Lend-Lease programs undertaken by the Foreign Economic Administration that the following general principles should apply:
- (a)
- No new contracts should be entered into for goods or services to be furnished on Lend-Lease terms.
- (b)
- Supplies which are now in the process of manufacture, in storage, awaiting shipment, or not yet transferred to your government, and services within presently agreed programs may be obtained by your country, to the extent that they are available, against payment on appropriate terms and conditions.
- (c)
- All existing supplies which have been transferred to your government on Lend-Lease terms and which are in shipment or under the control of your government in inventory may be retained by your Government against payment on appropriate terms and conditions.
- (d)
- Cash reimbursement Lend-Lease will be available for 60 days after V–J Day during which time requisitions within presently agreed programs may be filed with the Foreign Economic Administration.
It will be necessary in the course of our discussions to have an inventory of Lend-Lease supplies furnished by the Foreign Economic Administration still under the control of your government. It is requested, therefore that you furnish, as soon as possible, an inventory listing, as of V–J Day, all articles that have been transferred to your government by the Foreign Economic Administration on Lend-Lease terms and that have not been lost, destroyed or consumed. I will be glad to discuss with you the principles upon which such inventory should be prepared.
Negotiations referred to in the above letter will be carried on in Washington and you will be advised of developments. Meantime, this will enable you to answer in a general way any questions, but you should refer specific questions and those involving negotiations promptly to Washington. [Crowley.]