893.50 Recovery/5–1049

The Under Secretary of State (Webb) to the Director of the Office of Far Eastern Affairs (Butterworth)

Mr. Butterworth: General Chennault83 is coming in to see me tomorrow at 12:00 o’clock. He has several propositions, as follows:

(1)
He wishes to emphasize the importance of having $5,000,000 of the available ECA funds set up to insure continuation of airline operations into the southern provinces and states where resistance to the Communists may continue to be encouraged for a long time. I understand ECA is favorable and that Pan American Airways is handling the presentation to the Government.
(2)
He feels there is a definite possibility, without too large a Government expenditure, of continuing some form of resistance although he agrees that the Generalissimo and most of the Nationalist leaders are out of the picture from here on out.
(3)
If it gets to a point that we openly encourage armed conflict, he wants to be in on the fight.

I understand the above from one of his friends who has been advising him to work with the State Department rather than against it.

Please let me have your advice.

James E. Webb
  1. Maj. Gen. Claire L. Chennault (ret), chairman of board of Civil Air Transport, Inc., and wartime commanding general of U.S. 14th Air Force in China.