Marshall Mission Files, Lot 54–D270: Telegram
Colonel James C. Davis to General Marshall
97562. No agreement of any kind has been signed by Eximbank and Chinese covering cotton loan. Reference your 200 dated 16 February. Only action here has been approval of extension of credit for purpose [Page 943] of purchasing cotton. In approving extension of the credit the Board of Directors of Eximbank provided that before the credit should be available to Chinese the Chinese would have to agree to certain undertakings with regard to the manner in which the funds would be used. Situation in this respect is as stated in State Deptel 236 of 6 February and State Deptel 297 dated 15 February. Eximbank position does not constitute unilateral action with respect to a mutually agreed covenant but rather states the terms upon which the bank is willing to enter into an agreement to extend the desired credit. As stated in State Deptel 297 dated 15 February Eximbank desires your comment on its position.