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S5 File DOR. 630 DECLASSIFIED MEYORANDUM FOR THE FILES EO. 11652, Sec. 3(E) and 5(D) or (c) by L. Hayes Dept. NITHH MARS Date 6.25.25 of State letter, Aug. 10, 1972 June 13, 1945 I have just read inr Derartment' S secret cable (Come In - No. 14737, January 20, 1944 - NR 53 dated January 22, 1944) from Ambassador Gauss to General Somervell for the Secretary of, State The Ambassador says that the last paragraph of the President's message to Generalissimo (January 20, 1944) would easily be mis- understood by the Chinese. The President's message was as follows: Recognizing the validity or your claims that your Governnent is not in a position to bear the financial urden of contributing to the maintenance of American troops in China, this Government is fully prepared to bear all costs of its war effort in China including housing as well as construction under the general arrangements that will be suggested by General Stilwell ano the Ambassador." The Ambassador seys that the furnishing of Chinese currenc to the United States as a gift or. as reverse lend-lease to cover the difference between the official rate 01 exchange and the market rate could easily be construed as a preponcierant contribution of the Chinese to the United States war effort, but President Roosevelt's nessoge indicates that the Chinese yould not be expected to bear any financial burden in contributing to the maintenance of American troops in Chine. The Anbassador therefore su gests that an alternative program be supplied. The Le art ent on Janunry it 125 to Chun sent the following paragrapi as a substitute for the ori inal Roosevelt para Tranh. II Furthermore, since you say that your Govern- st ment is not in a nosition to continue any direct maintenance of Anerican troops in China, this Govern- ment, in order to cover all of its militari expenditures in China, including such maintenance as well as construc- tion, is prepared to "lace to your account the U.S. dollar ecuivalent of any Chinese funds maic e available under general arran enents that will be surzested by General stilwell ane the Ambassador. See copy dated January 23, 1944, p. 553. Not printed. (File no.: 893.51/774AA)

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    "ocrText": "S5\nFile\nDOR.\n630\nDECLASSIFIED\nMEYORANDUM FOR THE FILES\nEO. 11652, Sec. 3(E) and 5(D) or (c)\nby L. Hayes\nDept. NITHH MARS Date 6.25.25\nof State letter, Aug. 10, 1972\nJune 13, 1945\nI have just read inr Derartment' S secret cable\n(Come In - No. 14737, January 20, 1944 - NR 53 dated\nJanuary 22, 1944) from Ambassador Gauss to General\nSomervell for the Secretary of, State The Ambassador\nsays that the last paragraph of the President's message\nto Generalissimo (January 20, 1944) would easily be mis-\nunderstood by the Chinese. The President's message\nwas as follows:\nRecognizing the validity or your claims that your\nGovernnent is not in a position to bear the financial\nurden of contributing to the maintenance of American\ntroops in China, this Government is fully prepared to\nbear all costs of its war effort in China including\nhousing as well as construction under the general\narrangements that will be suggested by General Stilwell\nano the Ambassador.\"\nThe Ambassador seys that the furnishing of Chinese\ncurrenc to the United States as a gift or. as reverse\nlend-lease to cover the difference between the official\nrate 01 exchange and the market rate could easily be\nconstrued as a preponcierant contribution of the Chinese\nto the United States war effort, but President Roosevelt's\nnessoge indicates that the Chinese yould not be expected\nto bear any financial burden in contributing to the\nmaintenance of American troops in Chine. The Anbassador\ntherefore su gests that an alternative program be supplied.\nThe Le art ent on Janunry it 125 to\nChun sent the following paragrapi as a substitute\nfor the ori inal Roosevelt para Tranh.\nII\nFurthermore, since you say that your Govern-\nst\nment is not in a nosition to continue any direct\nmaintenance of Anerican troops in China, this Govern-\nment, in order to cover all of its militari expenditures\nin China, including such maintenance as well as construc-\ntion, is prepared to \"lace to your account the U.S. dollar\necuivalent of any Chinese funds maic e available under\ngeneral arran enents that will be surzested by General\nstilwell ane the Ambassador.\nSee copy dated January 23, 1944, p. 553.\nNot printed. (File no.: 893.51/774AA)"
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