TLS as president, two pages, 8 x 10.5, White House letterhead, August 2, 1946. Letter to Dr. John Roy Steelman, his White House Chief of Staff, in full: "I agree with your recommendation that a mission should proceed immediately to China to conduct on the spot negotiations for a sale of our uncommitted Pacific surpluses to the Chinese Government. Mr. McCabe, as the Foreign Liquidation Commissioner, should take part in the mission; and because the problems involved in such a sale affect the interests of several government departments and agencies, he should be accompanied by high officials of the War and Navy Departments and of the War Shipping Administration, each of whom should carry with him full authority to act for his department or agency in any matter of concern to such department or agency which may arise in the course of the negotiations. In addition, a representative of the Treasury should accompany the mission as an adviser. As the Foreign Liquidation Commissioner, Mr. McCabe is of course responsible for the ultimate decision as to whether a sale should be made, and as to its terms and conditions; and his decision after due consultation with his associates on the mission, as well as with General Marshall and with Ambassadors Stuart and McNutt, will carry with it the authority of your office and will be supported by my approval.
For Mr. McCabe’s guidance, I think it well to reiterate my conviction that General Marshall’s mission in China is of tremendous importance to our national welfare. Considerations affecting the success of this mission should be paramount in any decision whether and how to sell our Pacific surpluses. Second only to the considerations affecting the Marshall mission, weight should be given to effecting a speedy roll-up of our military and naval operations in the Pacific, and to bringing home promptly the largest possible number of our soldiers, sailors and marines and reducing the number of civilian employees of our armed services overseas. These considerations cannot of course supersede the statutory injunction to secure as nearly as possible fair value in the sale of surplus property, but they should be taken heavily into account in deciding just what is fair value in all the circumstances.
Although the primary purpose of Mr. McCabe’s mission will not relate to the various phases of our war account with China, such as lend-lease, the 1942 credit, or the obligations of our Government on account of yuan expenditures and advances by the Chinese Government, yet it is apparent that successful negotiation of a surplus sale may well call for negotiation and settlement of some one or all of these additional outstanding items. Mr. McCabe should be fully authorized to deal with these matters on behalf of the United States, following relevant policy decisions wherever they have already been made." In very good to fine condition, with light staining and rusty staple holes.
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