893.51/2–2546: Telegram
The Counselor of Embassy in China (Smyth) to the Secretary of State
[Received February 25—6:26 a.m.]
359. From General Marshall. In a letter of February 20 to T. V. Soong, I brought his attention to desirability of prompt initiation in Washington of negotiations for settlement in accordance with your telegram 284 of February 13. In his reply of February 22, Soong expressed complete agreement, adding “as a first step, I suggest that each side appoint two or three representatives here to draw up an agreed statement of the amount of the yuan indebtedness.”
I understand that in previous negotiations on yuan settlements determination of amount of yuan indebtedness was not always a simple matter. Moreover, there appears to be some difference between Army and Ministry of Finance estimates of yuan indebtedness for 1945, which difference could in any case only be resolved by reference back to China Theater. For these reasons Soong’s suggestion has merits, but I wish to obtain your concurrence before assenting.
If you do concur, I would suggest nominating Col. Webber, Fiscal Officer of China Theater, Col. Pforzheimer of Army Budget Office, Washington, and Adler. Colonels Webber and Pforzheimer are now in Washington and if you endorse my concurring with Soong’s suggestion, they should be sent to Chungking immediately and instructed to bring all relevant documents. [Marshall.]