893.248/231

Memorandum by the Adviser on Political Relations (Hornbeck)

While reading Mr. Johnson’s memorandum91 and before reading Mr. Peck’s memorandum,92 there came into my mind three points in favor of letting the Chinese Government use the funds under reference for the purpose under consideration. Upon turning to Mr. Peck’s memorandum, I find those three points already set out by Mr. Peck: on page 2, a., b. and c. of his memorandum. I agree with all that appears in Mr. Johnson’s memorandum except the last three lines. I agree with all that appears in Mr. Peck’s memorandum. It seems to me that: the Chinese present need for transport planes is great; United States production cannot possibly supply in the near future all that the Chinese need and all that Pan American Airways is asking for for use in China; there is for the present plenty of room in China for operation by both Pan American and Eurasia; if German planes can be bought, be brought into China and be operated to meet Chinese needs, so much to the good; China would have more planes, Germany would have less planes, and the United States would be freer by just so much for supplying of Great Britain’s needs; Japanese dissatisfaction with German action would be increased; the Chinese are capable of seeing to it that Eurasia’s operations benefit China rather than Germany and/or Germany’s allies; the net would be an advantage for China, Great Britain and the United States. I favor: (1) if we are not officially approached, let nature take its course; (2) if we are officially approached, advocate allowing American funds, with proper safeguarding, to be used for the purpose indicated.93

S[tanley] K. H[ornbeck]
  1. Supra.
  2. Dated June 2, p. 657.
  3. On the afternoon of June 6 this memorandum and those written by Messrs. Johnson and Peck were shown to the Administrative Assistant to President Roosevelt (Currie) by the Assistant Chief of the Division of Far Eastern Affairs (Atcheson). Dr. Currie made comment that China was at that time receiving no funds for the purchase of planes. Consideration was, however, being given to the allocation to China of about 10 freight transport planes for use on a shuttle service for over-mountain flying along a short section of the Burma Road.