893.51/9–546
The Chairman of the United States Maritime Commission (Smith) to the Under Secretary of State for Economic Affairs (Clayton)
My Dear Mr. Secretary: On May 27, 1946 the National Government of the Republic of China filed an application with the Maritime Commission for the purchase of 159 war-built vessels of various types under the provisions of the Merchant Ship Sales Act of 1946. This application represents the proposed extension of credit by the United States to China of approximately $76,000,000 over a period covering the life of the vessels to be sold, involving in no case a credit extension beyond a limit of twenty years.
As a matter of policy, the question of extending credit to the National Government of the Republic of China has been referred by the Maritime Commission to the National Advisory Council for advice and guidance. In a recent communication received from the National Advisory Council the Commission has been advised that, “The Council has no objection to the extension of the credit to the Government of China providing that the Department of State’s approval has first been obtained.”
It would be appreciated if the Department of State would advise the Maritime Commission of its views with respect to the extension by the Maritime Commission of the amount of credit requested by the National Government of the Republic of China to cover the purchase of the war-built vessels applied for. Inasmuch as the application of the Chinese Government is now under consideration, the Commission would appreciate being advised of the Department of State’s determination in this matter as speedily as possible.
Sincerely yours,