Marshall Mission Files, Lot 54–D270: Telegram
The War Department to General Marshall
92214. In conference with General Eisenhower28 20 June high officials of Pan American Airways discussed matter of Export–Import Bank loan to CNAC.29 The matter is still in discussion state and no indication was given by PAA that the Chinese or Exim Bank had yet been consulted. PAA pointed out that their China contract has just been renewed for 5 years with provision for 5-year extension. They own 20% of CNAC stock with remainder owned by Chinese Govt. They claim the unique position of being only foreign company that is accorded a completely free hand in any of China’s industries. Under the present plans for financing and procurement of equipment a gradual extension of service is contemplated dependent upon future revenues. Provided, however, that Exim Bank will make loan to CNAC to be guaranteed by Central Bank of China, the company stands ready to undertake an immediate enlargement of air facilities in China. This loan, the company feels, should be on the order of 20 million dollars to establish a modern service over China, including weather and communications, improved fields and expansion of operational airplanes from 40 to 150. The company officials asked General Eisenhower his opinion as to whether it would be a good thing for the United States in view of our many commitments in China for assistance of various types. They did not ask for War Dept support from a national security standpoint. General Eisenhower told them that this was largely a question for the State Dept and particularly for you to pass upon. He stated that he would communicate the project to you for whatever answer you chose to make. Your comments are requested.