Telegram from James A. Jacobson to Edwin A. Locke, Jr.

DECLASSIFIED by authority of SECRET DEPT. OR COMMERCE at To - S. MEMO FROM NL TO PRIORITY NLT 4-12-93 Initials BIC20105/21/74 21 AUGUST 1945 us NCR 2235 FROM: JAMES A JACOBSON aur TO: EDWIN A LOCKE, JR APPRECIATED YOUR CABLE ON WHICH I BASED MY REMARKS TO THE GENERALISS- IMO AT CONFERENCE YESTERDAY, TO WHOM I RECOMMENDED THAT TOP LEVEL G CHINESE ORGANIZATION HANDLE PROBLEM OF DIRECTING AND FINANCING CHINA INDUSTRIAL REVIVAL PROGRAM. SPECIFICALLY 1 RECOMMENDED AN INTERIM APPROPRIATION OF FIFTY BILLION CNC FOR THIS PURPOSE AND CONTINUANCE OF APPROPRIATELY MODIFIED WPB AND WTB ORGANIZATIONS FOR A PERIOD OF 12 TO 18 MONTHS AFTER VJ DAY. THE GENERALISSIMO ASKED FOR FURTHER DETAILS IN WRITING PENDING RECEIPT OF WHICH NO DECISION WAS RE- CEIVED, BUT DESPITE PRESSURE OF MILITARY AND OTHER DEVELOPMENTS ON HIS TIME, I BELIEVE HE CLEARLY UNDERSTOOD IMPORTANCE OF PROCEEDING SOON ON ECONOMIC AND INDUSTRIAL RECOVERY MATTERS. I ALSO INFORMED HIM OF MCMANMON'S ARRIVAL EARLY IN SEPTEMBER AND MY RETURN THE US SHORTLY THEREAFTER. NEW SUBJECT: SHORTLY PRIOR TO CONFERENCE ONLY WORD CHINESE HAD ON LEND LEASE WAS INDI- BACTON AMBASSADOR WEI APPARENTLY THOUGHT HE HAD FROM MR CROWLEY THAT LATTER WOULD ASSIST IN SECURING LEND LEASE SUPPLIES IN INDIA AND ENROUTE THERE FOR THE CHINESE ON SOME BASIS ROUGHLY EQUIVALENT TO LEND LEASE. THIS IMPRESSION CHINESE HAVE IS OF COURSE QUITE DIFFERENT FROM THAT WHICH YOU INDICATED IN YOUR CABLE. SINCE THESE DECISIONS ARE BEING MADE IN WASHINGTON T THOUGHT IT BEST NOT TO MENTION THE MATTER TO THE GENERALISSIMO BUT I AM CONVINCED THAT WASHINGTON IN AMERICA'S LONG TERM INTEREST OUGHT TO GIVE CONSTRUC- - TIVE CONSIDERATION TO URGENCY OF CHINA'S NEEDS