893.51/4–1946: Telegram
The Counselor of Embassy in China (Smyth) to the Secretary of State
Chungking, April 19,
1946—10 a.m.
[Received 11:14 a.m.]
[Received 11:14 a.m.]
704. From Adler to Secretary Treasury.
- 1.
- After a number of conferences between Minister of Finance, Colonel
Webber and myself (see Urtel 403 of March 5), we initialled a minutes of
meeting held at Ministry on April 15, 1946. Substance of minutes
follows:
- (a)
- Chinese advances to US Armed Forces in China from January 1, 1945, to April 15, 1946, total 161,683,497,110 yuan and 500,000 Taiwan yen, while deductions from the above sum representing taxes, advances to the Chinese Army exceptions, etc. total 36,402,739,000 yuan. Net obligations are therefore 125,280,758,110 yuan and 500,000 Taiwan yen.
- (b)
- The US may prior to settlement negotiations return to Chinese Govt such unexpended yuan and Taiwan balances as are no longer needed and the amount so returned shall for the purpose of settlement negotiations be deducted from the net obligations of the US (Colonel Webber informs me that he expects to be able to return about 15 billion yuan, which would leave our net yuan obligations at just over 110 billion yuan).
- (c)
- The above amounts do not include any expenditures made on account of War Area Service Corps activities. (Chinese submitted a table on their WASC advances during 1945 totalling approximately 34.6 billion yuan, but not all this sum was spent. Colonel Webber will prepare a report on WASC expenditures to date on his return to Shanghai).
- (d)
- The above in no way prejudices position of either party with respect to determination of US dollar equivalent of the net yuan and Taiwan yen obligations of the US to China.
- 2.
- Documents following by pouch. [Adler.]
Smyth