893.24/9–1845
The Administrator of the Foreign Economic Administration (Crowley) to the President of the Chinese Executive Yuan (Soong)
Dear Dr. Soong: This is in reply to your letter to me of August 23 [24], 1945, replying to my memorandum of August 22, 1945 with regard to our conference on the subject of lend-lease to China, and also to your three letters to me dated September 10, 1945.42
I. Reference Paragraph One of Your Letter of August 24, 1945.
At the outset I should like to comment on the desire expressed by you in your letter of August 24, that China not be placed in a less advantageous position than the Governments of the United Kingdom and the Soviet Union. It is the policy and intent of this Administration that all Lend-Lease matters affecting China shall be settled on a fair and equitable basis so as to aid your country to consolidate our newly-won and mutual victory against the Axis aggressors. You may be sure that this basic policy will underlie all our negotiations.
With regard to all FEA lend-lease supplies marked for China as may be in inventory in this country, it is proposed that they be valued at 100% of their original cost and supplied under the terms stated in paragraph three of my memorandum of August 22.
You and I have had several conversations with regard to identifiable and unconsumed FEA lend-lease supplies in China, India, and enroute consigned to Indian ports, on V–J Day. I am holding discussions with the Commissioner of the Office of the Army-Navy Liquidation [Page 1156] Commission relative to disposal of these supplies and will communicate with you regarding them at a later date.
II. Reference Paragraph Two of Your Letter of August 24.
- (1)
- It is agreed that you will immediately review all FEA lend-lease items in process of procurement and manufacture and notify me which of these items you wish to select for completion under the terms of paragraph three of my memorandum of August 22.
- (2)
- You raise the problem of services now being rendered under lend-lease for your Government. In general, the nature of these current services is such that I do not feel they lend themselves appropriately to long-term financing such as was proposed in paragraph three of my memorandum of August 22, 1945.…
. . . . . . . . . . . . . .
III. Reference Paragraph Four of Your Letter of August 24.
You have stated in your letter of August 24, that your Government has prepared a two billion dollar program to cover reconstruction needs over the next three years. At the present time, I do not believe that this Government is in a position to consider the making of a loan to China of this amount out of existing appropriations and authorizations. I am prepared, however, to recommend to the Export-Import Bank that there be made available to China at the earliest possible opportunity a credit in the amount and for such purposes and on such terms, as may be mutually agreed upon between our two Governments.
Sincerely yours,
- Not printed; they dealt with various services performed for the Chinese Government by the Foreign Economic Administration under Lend-Lease [FEA, Lot 53—M29].↩