893.51/7410
The Under Secretary of State (Welles) to the Secretary of the Treasury (Morgenthau)
My Dear Mr. Secretary: I believe that all of us who have been especially interested in meeting Chiang Kai-shek’s request that this Government extend substantial financial aid to China are warranted in feeling gratified at the unanimity and the speed with which the Congress has made legislative provision for extending financial aid to China in amount not to exceed $500,000,000. The psychological effect produced, both in this country and in China and elsewhere, by this Government’s action has been, I am confident, highly beneficial to the common war effort of the United Nations.
It has occurred to me that further political advantage would be gained were this Government to take prompt steps looking toward the formulating of a proposal or proposals whereby there would be made immediately available to the Chinese Government some substantial portion of this money.
If this suggestion should appeal to you in principle, might I suggest that there be held at the earliest practicable date a conference of representatives of the interested agencies of this Government for the purpose of working out what may seem to be the most feasible and appropriate plan?
I am bringing the foregoing suggestions to your attention in view of this Department’s continuing interest, which I am sure you appreciate and share, in the political aspects of this matter.
Sincerely yours,