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Thomas B. McCabe, United States Foreign Liquidation Commissioner and Special Assistant to the Secretary of State, made the following statement on August 31st in Shanghai concerning the surplus property sale to China: "The most significant features of the large bulk sale of the U. S. surplus property in the Western Pacific to China are: "1. The incalculable benefits to China of the huge volume of civilian type items which can be immediately distributed among its 400 million people to start the wheels of commerce turning among its multitude of small businesses where an acute shortage of materials exist. "China needs thousands of miles of new roads and, the road building equipment it will acquire in this surplus transaction will make work for great numbers of its people and the new roads will provide means of transportation which are so desperately needed. "In a country which is undergoing acute inflation, the impact of one and one half million tons of additional items will have a profound effect. The U. S. policy is to assist China in attaining peace and unity and its ob- jectives can only be attained by assisting in the restoration of China's economy. The surpluses which China has just purchased from us will go far in this direction, as they are promptly and efficiently distributed in all parts of the country. "The property just acquired by China does not include aircraft, ammuni- tion, weapons or any non-demilitarized combat material. "2. The advantages to the United States of this sale to China are obvious as it will relieve us in the near future of the large expenses of care and custody of huge quantities of materials scattered among numerous islands of the Pacific where many thousands of our troops are employed in caring for the property and where the expenses of maintaining these troops are obviously high. "Deterioration of the property is evident - because of the tropical weather conditions - and unless it is disposed of promptly its value will progressively become less and less. "The price which China is paying us for the surplus property is quite fair and reasonable and includes the unique features of settlement to date of many heretofore unsettled accounts including the balancing of our debt to China under the so-called "Yuan Account" as well as providing the equivalent of 55 million dollars (US) in Chinese currency for the acquisition of U. S.

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Page context
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    "ocrText": "Thomas B. McCabe, United States Foreign Liquidation Commissioner and\nSpecial Assistant to the Secretary of State, made the following statement\non August 31st in Shanghai concerning the surplus property sale to China:\n\"The most significant features of the large bulk sale of the U. S.\nsurplus property in the Western Pacific to China are:\n\"1. The incalculable benefits to China of the huge volume of civilian\ntype items which can be immediately distributed among its 400 million people\nto start the wheels of commerce turning among its multitude of small businesses\nwhere an acute shortage of materials exist.\n\"China needs thousands of miles of new roads and, the road building\nequipment it will acquire in this surplus transaction will make work for great\nnumbers of its people and the new roads will provide means of transportation\nwhich are so desperately needed.\n\"In a country which is undergoing acute inflation, the impact of\none and one half million tons of additional items will have a profound effect.\nThe U. S. policy is to assist China in attaining peace and unity and its ob-\njectives can only be attained by assisting in the restoration of China's\neconomy. The surpluses which China has just purchased from us will go far in\nthis direction, as they are promptly and efficiently distributed in all parts\nof the country.\n\"The property just acquired by China does not include aircraft, ammuni-\ntion, weapons or any non-demilitarized combat material.\n\"2. The advantages to the United States of this sale to China are\nobvious as it will relieve us in the near future of the large expenses of\ncare and custody of huge quantities of materials scattered among numerous\nislands of the Pacific where many thousands of our troops are employed in\ncaring for the property and where the expenses of maintaining these troops\nare obviously high.\n\"Deterioration of the property is evident - because of the tropical\nweather conditions - and unless it is disposed of promptly its value will\nprogressively become less and less.\n\"The price which China is paying us for the surplus property is quite\nfair and reasonable and includes the unique features of settlement to date\nof many heretofore unsettled accounts including the balancing of our debt to\nChina under the so-called \"Yuan Account\" as well as providing the equivalent\nof 55 million dollars (US) in Chinese currency for the acquisition of U. S."
}