893.24/6–2046
The Acting Secretary of State to the Secretary of Navy (Forrestal)
My Dear Mr. Secretary: I refer to Admiral Reeves’ letter of June 20, 1946 ([SC]L11–7/EF16, Serial 0404P40),71 regarding the provision to the Government of the Republic of China under the Lend-Lease Act of “maintenance repairs, supplies and services, not available as surplus U. S. Government property, in support of Naval vessels, equipment and training programs heretofore authorized under credit lend-lease”.
In accordance with the authority vested in the Secretary of State by the President’s memorandum to the Secretaries of War and of the Navy of January 19, 1946,72 the Navy Department is hereby authorized to provide after June 30, 1946, the supplies and services referred to above in an amount not exceeding $5,000,000 for a period extending not beyond December 31, 1947.
[Page 800]There is attached hereto a photostatic copy of the 3 (c) Agreement signed on June 28, 1946,73 by representatives of the Governments of the United States and China. Article II (c) of the Agreement, which was approved by Captain Sinnett of Admiral Reeves’ office in advance of signing, is intended to comprehend the entire naval program approved above. You will note that the costs of the training programs enumerated in Article II (c) are not to exceed $15,000,000 of which it is understood that $5,000,000 will cover the costs of the naval program and the balance of $10,000,000 will cover the costs of the War Department air, ground, and medical training programs.
You will note further that the Agreement provides in Article III for reimbursement by the Government of the Republic of China upon presentation of bills by the Government of the United States. The presentation of bills may be made, at your discretion, either in advance of or subsequent to the provision of naval supplies and services in support of the approved program.
Sincerely yours,