893.154/386: Telegram
The Ambassador in China (Gauss) to the Secretary of State
[Received September 25—9:45 a.m.]
400. Reference Department’s No. 218, September 17, 7 p.m., regarding Burma Road. I am endeavoring to obtain confirmation of Arnstein’s understanding as communicated to Currie.
Wilson might well retain his Army status, at least until it becomes clear that services are required of him beyond those he can give in that status.
Baker’s future plans appear to be uncertain but he may remain as assistant to General Yu Fei-peng until termination of his contract next March.
Currie may be interested in the following: William Douglas Pawley, an American citizen who built and operates the aircraft factory at Loiwing on the Yunnan-Burma border and who also built and operates an extensive aircraft plant at Bangalore for the Government of India, visited Chungking last week briefly and told me that he has at Loiwing over 1000 experienced Chinese mechanics and skilled workmen of various classes together with a technical staff of 250 including a substantial number of graduates from American technical colleges and 12 Americans of whom 9 have had 6 to 7 years’ experience [in?] China and with Chinese workmen; that this force could readily be used in whole or in part as the framework for a maintenance and operations organization for the Burma Road; that if requested by the Chinese Government he would be prepared to undertake such a project if given full authority in his field of operations; but that he does not wish to take the initiative in this matter, believing that it should come from the Chinese side.
Pawley is an American of strong learning, with ability and drive and long experience with the Chinese. It is possible that his organization might be found to form an excellent framework, together with the men being sent out under Lend-Lease but who have had no China experience, for an efficient operating and maintenance force for the road. Obviously, however, there should be careful investigation on the spot with regard to the Pawley organization and with regard [Page 731] to the manner in which he would coordinate and utilize Lend-Lease technical personnel.
I do not feel that the Embassy or the American Government should make any recommendation or suggestion to the Chinese in this matter. But Currie may wish to discuss Pawley with T. V. Soong. The Chinese Government is well acquainted with Pawley; he needs no official introduction; and the Chinese Government can determine for itself whether to seek the services of Pawley and his organization. Pawley has mentioned this matter in several quarters here through which it will undoubtedly come to the attention of the Generalissimo in due course. Pawley has now returned to Rangoon.
As the Department is aware, the British authorities in Burma and elsewhere are inclined to be highly critical of the situation on the Burma Road and disposed to press the Chinese Government for its improvement. Unfortunately they either ignore or are ignorant of the fact that the closing of the Burma Road by the British last year makes the Generalissimo distrustful of them and their suggestions. Pawley seems to have appropriate relations with the British authorities in Burma, India, and Singapore and I gather from what he said to me that they favor his participation in the operation of the Burma Road and may have so recommended to the Generalissimo—a recommendation on their part which might adversely affect the Generalissimo’s attitude. If Pawley were to undertake the project he would probably maintain harmonious relations with the British in Burma which in my opinion is most desirable.