893.51/3–1747
Memorandum by the Director of the Office of Far Eastern Affairs (Vincent) to the Secretary of State
There is attached a memorandum97 in regard to possible future credits to China. You will note that the total comes to about $101,000,000. Over $60,000,000 is for transportation, mining, harbor improvement, and manufacturing, and $40,000,000 is for cotton. This latter figure represents what China hoped to get in the way of cotton from UNRRA. It now appears unlikely that UNRRA will be able to approve the request.
In having this memorandum prepared my thought is that we may [Page 1083] want or have to come forward at some not too distant future time with a definite recommendation with regard to credits for China. At that time I think we should be ready to say that we have examined the situation in so far as available facts will permit and, after discussion with the ExImBank, are prepared to support China’s requests for certain definite projects. I believe that the psychological effect will be beneficial if we are prepared to say that the projects aggregated $100,000,000 and that therefore we recommend that this portion of the $500,000,000 loan be made available.
I do not, as I have indicated, know when this time will come, nor do I have any assurance that the ExImBank will be favorably inclined at that time, but our own position vis-à-vis China and vis-à-vis those in this country impatient to aid China would be strengthened if we were in a position to say something positive and definite.