893.24/12–247: Telegram
The Acting Secretary of State to the Ambassador in China (Stuart)
1501. Chinese reps in Washington have made FLC counter-offer of 17¢ for Zone of Interior supplies for 8⅓ Group Program (Deptel 1457 Dec 2) 20 percent cash with balance payable 5 to 8 years.
Dept has reiterated to Chinese Emb that because of commitments to other countries 17½¢ all cash is minimum acceptable to FLC. It also felt compelled to point out to Chinese Emb that failure of Chinese Govt to act promptly in this matter will inevitably be interpreted as indicating that Chinese professions of urgency of need for military equipment generally have been overemphasized and will therefore serve to delay other matters.
Pls pass above info to Chief, Air Division, AAG, and in discretion of Minister-Counselor personally to Dr. Wang.