893.51/2–2546: Telegram
The Counselor of Embassy in China (Smyth) to the Secretary of State
[Received February 25—8:50 a.m.]
360. From General Marshall. Question of terms of Eximbank loan for transportation equipment raised by Soong in conversation with [Page 950] me February 24. Soong said China was being asked to pay 3 and 3½% interest with maturity rate of 15 and 30 years, while France was obtaining 3–C terms. Is it correct that 3–C terms are only granted for goods originally requisitioned under Lend-Lease? I would like very much to see China given as favorable terms as possible, but I do not wish to put Eximbank in a position where granting of 3–C terms to China for this particular loan would constitute an unfortunate precedent. [Marshall.]