Marshall Mission Files, Lot 54–D270
Memorandum by the President of the Executive Yuan (Soong) to General Marshall
1. In August 1945 the Chinese Government presented to Mr. Leo Crowley a $2,000,000,000 three-year loan program for (1) the development and modernization of transportation and communications, and (2) the development of mines and industries with a view toward increasing both agricultural and industrial production. In liquidation of the loan, consideration was duly given to the stimulation of exports. Mr. Crowley, in his reply, informed us that the Export–Import Bank’s capital was limited, and suggested that as a beginning a one-year, instead of a three-year program, should be presented.
The Chinese Government then submitted a program calling for $673,940,700, leaving the balance of the original $2,000,000,000 request for future discussion. Mr. Crowley, after consulting his colleagues, replied that we could expect a credit of $560,000,000.
Now, however, in view of the stripping of Manchurian industries by the Soviet,95 the unexpected and severe devastation in Formosa, the obliteration of centers like Hengyang, Changsha, Kweilin and Liuchow, and many other unseen factors, it will be necessary to ask for an increase in the loan to the round sum of one billion dollars. It is also suggested that this sum would be of great political and psychological value to China in the grip of acute economic distress today.
2. Secondly, to make the scheduled demobilization of the bulk of what in China is essentially a professional army a reality, preparing and launching the retiring officers and men into new gainful occupations, a separate loan of $500,000,000 is requested.