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66.1 -12- 661 PREPARING OFFICE TELEGRAM SENT PREPARING OFFICE WILL WILL INDICATE WHETHER TYPE HERE CLEARLY THE Collect CLASSIFICATION OF THE Department of date MESSAGE: Charge Department: 145 Washington Charge to B. The National Advisory Council is now considering the question of the settlement of the $500 million loan, including the desirability of including this item in an over-all financial settlement. Among the factors being considered is whether in view of the past history of this $500 million loan, its inclusion in any over-all financial settlement would appreciably strengthen the position of the American negotiators and, if not, whether it might not be more desirable to exclude the loan from any over-all financial settlement and thus make it available to obtain other concessions in the future. 11. With respect to the foregoing, it is desired to determine (1) whether the interest of the United States will best be served by negotiating the solution of all problems at one time or whether they may be handled piecemeal; (2) the timing of such negotiations; and (3) the place or places where the negotiations can most effectively be conducted, i.e., Washington or Chungking. 12. A. In the light of the NAC policy, referred to in paragraph 2B above, it is believed here, subject to your approval, that the solution to all questions posed should be sought in one over-all seti lement negotiation except for the reservations indicated in paragraph 9 above with respect to the handling of the $500 million loan negotiated in 1942. is ARCHIVE3 ALCOADS SERVICE AND DECLASSIFIED E.O. 11652, Sec. 3(E) and 5(D) or (E) OSD letter, May 3, 1972 NLING NaRS Date6.25.75

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    "ocrText": "66.1\n-12-\n661\nPREPARING OFFICE\nTELEGRAM SENT\nPREPARING OFFICE WILL\nWILL INDICATE WHETHER\nTYPE HERE CLEARLY THE\nCollect\nCLASSIFICATION OF THE\nDepartment of date\nMESSAGE:\nCharge Department:\n145\nWashington\nCharge to\nB. The National Advisory Council is now considering\nthe question of the settlement of the $500 million loan, including\nthe desirability of including this item in an over-all financial\nsettlement. Among the factors being considered is whether in\nview of the past history of this $500 million loan, its inclusion\nin any over-all financial settlement would appreciably strengthen\nthe position of the American negotiators and, if not, whether it\nmight not be more desirable to exclude the loan from any over-all\nfinancial settlement and thus make it available to obtain other\nconcessions in the future.\n11. With respect to the foregoing, it is desired to\ndetermine (1) whether the interest of the United States will\nbest be served by negotiating the solution of all problems at one\ntime or whether they may be handled piecemeal; (2) the timing\nof such negotiations; and (3) the place or places where the\nnegotiations can most effectively be conducted, i.e., Washington\nor Chungking.\n12.\nA. In the light of the NAC policy, referred to in\nparagraph 2B above, it is believed here, subject to your approval,\nthat the solution to all questions posed should be sought in one\nover-all seti lement negotiation except for the reservations\nindicated in paragraph 9 above with respect to the handling of\nthe $500 million loan negotiated in 1942.\nis ARCHIVE3 ALCOADS SERVICE AND\nDECLASSIFIED\nE.O. 11652, Sec. 3(E) and 5(D) or (E)\nOSD letter, May 3, 1972\nNLING NaRS Date6.25.75"
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