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SECRET 59-1 WAR DEPARTMENT PALHSS 255 WAR B 10 CLASSIFIED MESSAGE CENTER CCWD 1135/28 BMS INCOMING MESSAGE 1234s Nov 28 to rile PRIORITY ON MR. POLIED NOV 30 1942 From: Chungking CH TO: AGWAR of STATE No AMMISCA 1461 Nov 27, 1942 No objection to entry into reverse Lend Lease agreement with Chine on guneral terms provided its provisions do not prevent or obstruct obtaining supplies, dquipment or services locally from governmental or private agencies by non reverse Lend Lease purchase or contract 9.24 whenever such course seems advissble to assure procurment when time and specifications are 3 factors (your one seven two sero for Somervell from Stilwell) under those conditions at this time procurement ayg equipment, strategic usterials for metals reserve, diversion of CDS supplies to our sos, and possibly CHAC transportation charges on reverse Lend Lease acceptable. Such agreement should in no way effect the present need for exchange rate revision nor should any differenttel between present rate of exchange and a revised upward rate be chargeable to reverse Lend Lease. Under present existing agreement between Chinese and our sos, Chinese are engaged in building airfields, revetments, roads and other projects of operational nature at the expense of the Chinese government. Since these are permanent improvement benefiting China in the future, the cost of such projects present and future should not become a charge against our government under reverse Le nd Lease credits or otherwise. U STILLWELL 1720 is CM-OUT-7304 (11/23/42) SOS-ING ACTION: SOS-TAG INFO. COPIES: OPD, G-2(for State Dept) CM-IN-12052 (11/28/42) 1538Z bjm SECRET COPY No. THE MAKING OF AN EXACT COPY OF THIS MESSAGE is FORBIDDEN

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    "ocrText": "SECRET 59-1\nWAR DEPARTMENT\nPALHSS\n255\nWAR B 10\nCLASSIFIED MESSAGE CENTER\nCCWD\n1135/28\nBMS\nINCOMING MESSAGE 1234s\nNov 28\nto\nrile\nPRIORITY\nON MR. POLIED\nNOV 30 1942\nFrom: Chungking\nCH\nTO:\nAGWAR\nof STATE\nNo AMMISCA 1461 Nov 27, 1942\nNo objection to entry into reverse Lend\nLease agreement with Chine on guneral terms\nprovided its provisions do not prevent or\nobstruct obtaining supplies, dquipment or services\nlocally from governmental or private agencies\nby non reverse Lend Lease purchase or contract\n9.24\nwhenever such course seems advissble to assure\nprocurment when time and specifications are\n3\nfactors (your one seven two sero for Somervell\nfrom Stilwell) under those conditions at this\ntime procurement ayg equipment, strategic usterials\nfor metals reserve, diversion of CDS supplies to\nour sos, and possibly CHAC transportation charges\non reverse Lend Lease acceptable.\nSuch agreement should in no way effect the\npresent need for exchange rate revision nor should\nany differenttel between present rate of exchange\nand a revised upward rate be chargeable to reverse\nLend Lease.\nUnder present existing agreement between\nChinese and our sos, Chinese are engaged in building\nairfields, revetments, roads and other projects of\noperational nature at the expense of the Chinese\ngovernment. Since these are permanent improvement\nbenefiting China in the future, the cost of such\nprojects present and future should not become a\ncharge against our government under reverse Le nd\nLease credits or otherwise.\nU\nSTILLWELL\n1720 is CM-OUT-7304 (11/23/42) SOS-ING\nACTION: SOS-TAG\nINFO. COPIES: OPD, G-2(for State Dept)\nCM-IN-12052 (11/28/42) 1538Z bjm\nSECRET\nCOPY No.\nTHE MAKING OF AN EXACT COPY OF THIS MESSAGE is FORBIDDEN"
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