893.20 Mission/11–2247: Telegram
The Acting Secretary of State to the Ambassador in China (Stuart)
1436. From Secy of State. You may rest assured (urtel 2284 Nov 22, 6 p.m.) premise is fully accepted here that military expenditures on present war scale are incompatible with balancing of Chinese Govt budget which in turn is prerequisite to controlling of inflation. You may recall it was in anticipation of ultimate consequences for China of such a situation that as long as 2 years ago this Govt attempted to prevent civil war in China. Furthermore it is a moot question whether military expenditures could in fact be cut during a period of civil war if present forces were reduced but remaining numbers given adequate care and equipment; it seems evident that only well led and well trained and cared for divisions imbued with improved spirit would be capable of assuming and holding initiative against Chinese Communist forces.
I am willing that Gen. Barr should make his advice available to Generalissimo on informal and confidential basis and that AAG should supply advice with respect to reorganization of Chinese Army Services of Supply should that be desired. I am however not willing that we should accept responsibility for Chinese strategic plans and operations. I think you will agree that implications of our accepting that responsibility would be very far-reaching and grave and that such responsibility is in logic inseparable from authority to make it effective. Whatever the Generalissimo may feel moved to say with respect to his willingness to delegate necessary powers to Americans, I know from my own experience that advice is always listened to very politely but not infrequently ignored when deemed unpalatable. [Marshall.]