893.24/10–3147

Memorandum by the Director of the Office of Far Eastern Affairs (Butterworth) to the Secretary of State

The Office of the Foreign Liquidation Commissioner telephoned to say that he had received word from the FLC representative in China that agreement had been reached with the Chinese authorities for the sale of the 8⅓ Group Program matériel located in the Pacific. It is expected that the arrangement will be signed early next week. FLC agreed to instruct its representative in Shanghai to notify the Chinese at that time what steps should be taken which would make for a speedy initiation and conclusion of negotiations for the supplies in the Zone of the Interior.