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312 24-2 - -2- retained to make cash purohases in order to supplement whatever aid the Chinese might agree to furnish, for the reason that Chinese standards would be inadequate for proper maintenance and housing of British soldiers. In the course of conversation Mr. Playfair was told with respect to the points referred to above that the Chinese have taken no iniative in this matter in Washington, in fact no discussions of a reciprocal Lend-Lease agreement have taken place with the Chinese in Washington, although the matter has received consideration within this Government and we would undoubtedly be pleased to discuss the matter at any time with the Chinese were they to request us to do so; that we have had no information that General Stilwell has in fact discussed with the Chinese an actual agreement although we understand that in various instances the Chinese have offered as an ad hoc matter to furnish certain things gratis; that the British Military Attaché may wish to inquire of the War Department as to errangements now in force between General Stilwell and the Chinese authorities with respect to American troops in China; that it appears likely that the primary Chinese aim--whatever subsidiary motives may be present--in offering supplies and services is to share in the common war effort; that it seems likely that any recipro- cal aid agreement which the United States may enter into with China will not interfere with General Stilwell's authority to make cash purchases or to prooure services for cash; and that it seems questionable whether the issue of differing standards of maintenance would be likely to arise under such an agreement for the reason that presumably acquisition of supplies from China under reciprocal aid arrangements would be bulk lots rather than of individual rations. Mr. Flayfair said that he would be glad to communicate to the Department such further information as the Embassy might receive in this matter and he said that the Embassy would in turn appreciate being kept informed of our thought on this subject. a CINATIONAL ANKECOROS SERVICE" is GH PA/H: AHiss:EM E " cg

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    "ocrText": "312\n24-2 -\n-2-\nretained to make cash purohases in order to supplement\nwhatever aid the Chinese might agree to furnish, for the\nreason that Chinese standards would be inadequate for\nproper maintenance and housing of British soldiers.\nIn the course of conversation Mr. Playfair was told\nwith respect to the points referred to above that the\nChinese have taken no iniative in this matter in Washington,\nin fact no discussions of a reciprocal Lend-Lease agreement\nhave taken place with the Chinese in Washington, although\nthe matter has received consideration within this Government\nand we would undoubtedly be pleased to discuss the matter\nat any time with the Chinese were they to request us to do so;\nthat we have had no information that General Stilwell has\nin fact discussed with the Chinese an actual agreement although\nwe understand that in various instances the Chinese have\noffered as an ad hoc matter to furnish certain things gratis;\nthat the British Military Attaché may wish to inquire of the\nWar Department as to errangements now in force between\nGeneral Stilwell and the Chinese authorities with respect to\nAmerican troops in China; that it appears likely that the\nprimary Chinese aim--whatever subsidiary motives may be\npresent--in offering supplies and services is to share in\nthe common war effort; that it seems likely that any recipro-\ncal aid agreement which the United States may enter into\nwith China will not interfere with General Stilwell's authority\nto make cash purchases or to prooure services for cash; and\nthat it seems questionable whether the issue of differing\nstandards of maintenance would be likely to arise under such\nan agreement for the reason that presumably acquisition of\nsupplies from China under reciprocal aid arrangements would\nbe bulk lots rather than of individual rations.\nMr. Flayfair said that he would be glad to communicate\nto the Department such further information as the Embassy\nmight receive in this matter and he said that the Embassy\nwould in turn appreciate being kept informed of our thought\non this subject.\na CINATIONAL\nANKECOROS\nSERVICE\"\nis\nGH\nPA/H: AHiss:EM\nE\n\"\ncg"
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