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651 PREPARING opmes WREL INDICATE TELEGRAM SENT PREPARING OFFICE WILL TYPE HERE CLEARLY THE Collect 185 OF THE Department of date MESSAGE: Charge Departments Washington Charge to B. The problem is the extent to which it is possible and appropriate to offset against any U.S. dollar obligation to pay for Yuan advances and expenditures the value of assistance furnished to China through lend lease, sale of surplus property, extension of credits, etc. The general objective of the Government in this connection is contained in recent policy statement of National Advisory Council which reads: "When General Marshall deems negotiations desirable, the U.S. will negotiate with China simultaneously on war settlements, including settlement of U.S. Army and Navy obligations to China, the sale of U.S. surplus property in China, and the settlement of lend-lease. The U.S. negotiators shall be guided in such negotiations by the principle that the Chinese Government should agree to offset Chinese obligations on account of lend-lease and the purchase of surplus property against the U.S. Army and Navy obligations.' 3. Lend-Lease pipeline in United States. A. This point covers pipeline of supplies in U.S. contracted for but not transferred before V-J Day. Pipeline is valued at $62 million of which transportation equipment is $33 million, textiles $7 million, miscellaneous $10 million, freight and services $12-1/2 million. It is estimated that $20 million of these supplies have been shipped and that balance 2 Dated January 8, 1946. DECLASSIFIED E.O. 11652, Sec. 3(E) and 5(D) or (E) OSD letter, May 3, 1972 BYNLTIK NARS Date 6.25.75

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    "ocrText": "651\nPREPARING opmes\nWREL INDICATE\nTELEGRAM SENT\nPREPARING OFFICE WILL\nTYPE HERE CLEARLY THE\nCollect\n185\nOF THE\nDepartment of date\nMESSAGE:\nCharge Departments\nWashington\nCharge to\nB. The problem is the extent to which it is\npossible and appropriate to offset against any U.S. dollar\nobligation to pay for Yuan advances and expenditures the\nvalue of assistance furnished to China through lend lease,\nsale of surplus property, extension of credits, etc. The\ngeneral objective of the Government in this connection is\ncontained in recent policy statement of National Advisory\nCouncil which reads: \"When General Marshall deems negotiations\ndesirable, the U.S. will negotiate with China simultaneously\non war settlements, including settlement of U.S. Army and\nNavy obligations to China, the sale of U.S. surplus property\nin China, and the settlement of lend-lease. The U.S. negotiators\nshall be guided in such negotiations by the principle that the\nChinese Government should agree to offset Chinese obligations\non account of lend-lease and the purchase of surplus property\nagainst the U.S. Army and Navy obligations.'\n3. Lend-Lease pipeline in United States.\nA. This point covers pipeline of supplies in U.S.\ncontracted for but not transferred before V-J Day. Pipeline\nis valued at $62 million of which transportation equipment\nis $33 million, textiles $7 million, miscellaneous $10 million,\nfreight and services $12-1/2 million. It is estimated that\n$20 million of these supplies have been shipped and that balance\n2\nDated January 8, 1946.\nDECLASSIFIED\nE.O. 11652, Sec. 3(E) and 5(D) or (E)\nOSD letter, May 3, 1972\nBYNLTIK NARS Date 6.25.75"
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