740.00119 P. W./12–2845: Telegram
The Acting Secretary of State to General George C. Marshall, Special Representative of President Truman in China
2077. Chinese Ambassador called at Department December 28 and asked whether in view of China’s urgent needs and probable delay in setting up of permanent reparations machinery arrangements could not be made for immediate transport to China of industrial equipment in Japan which clearly is not essential to Japan’s permanent economy. He mentioned in particular China’s immediate need for increased transport facilities and desire that Japanese transport planes now understood to be available in Japan be turned over to the Chinese for operation in China.
The Ambassador was informed that Ambassador Pauley12 has submitted a report to the President on the reparations question,13 that this report is being considered by the interested Depts in the Govt and that as soon as a decision can be reached regarding the forum (e. g. Far Eastern Commission) and framework within which reparations questions are to be handled it will be possible to give consideration to the Chinese proposals. With specific reference to use of Japanese transport planes in China the Ambassador was informed that pending decision on the above reparations questions General Marshall and General MacArthur would be asked to consult together and with the Chinese Government regarding the practicability of the proposal. The Ambassador was further advised that this Govt’s views when resolved would be communicated to the Chinese Govt through General Marshall.
We feel that unless it is clear that transfer of Japanese transport planes to China will result in substantial benefits to the Chinese it would be inadvisable to support this project because of possible future requests for continued functioning of Japanese aircraft parts factories [Page 720] to supply the necessary equipment for planes and for retention of Japanese personnel in China to service the planes.
War Dept is being requested to transmit substance of above to General MacArthur with request that he advise you the number and type of Japanese transport planes which might be made available to Chinese provided such action proves to be in conformity with reparation and industrial disarmament policies which may be agreed upon for Japan.
Your comments will be appreciated.