893.24/12–1647

The Acting Secretary of State to the Secretary of the Army (Royall)

My Dear Mr. Secretary: With reference to our telephone conversation of yesterday regarding contracts placed or to be placed by the Chinese Government with American manufacturers for the supply of ammunition, I wish to confirm that this Department concurs in the action contemplated by the Department of the Army in turning over, in accordance with existing legislation, to the manufacturers concerned for subsequent replacement, stocks held in Army depots abroad as well as at home. We understand that this, of course, does not apply to the stocks in the Marianas which, as you know, are subject to another arrangement which is in the process of implementation.

Sincerely yours,

Lovett