893.24/11–847

The Chinese Minister (Tan) to the Director of the Office of Far Eastern Affairs (Butterworth)

Dear Mr. Minister: Enclosed please find a Memorandum in regard to the request of my government for a certain quantity of M .50 cartridges, the contents of which had been communicated to you by me verbally on the 5th instant.

With personal regards,

Yours sincerely,

Shao-Hwa Tan
[Enclosure]

Memorandum by the Chinese Embassy

(1)
The Chinese Government is in urgent need of 10,000,000 rounds of M .50 cartridges. In response to a request made by the Chinese Minister for Foreign Affairs, the Secretary of State was good enough to have informed the former on October 16th that the United States Government would loan to China 10,000,000 rounds of such cartridges to be returned later in kind.
(2)
The Chinese Government should appreciate it if the said quantity of ammunition would be turned over to China from the remaining portion of a total of 24,550,000 rounds which the United States Government had agreed to supply to China under the 8⅓ Group Program for the Chinese Air Force. (Of the 24,550,000 rounds of .50 calibre cartridges, 17,280,000 are still pending delivery.)
(3)
If such an arrangement really can not be made at present, the Chinese Government would desire to borrow immediately 6,500,000 rounds to be returned with like ammunition, which will be manufactured by Olin Industries, Inc. (Winchester). The .50 cartridges needed by China should consist of the following:
a.
2,600,000 rounds of Balls
b.
2,600,000 rounds of Incendiaries
c.
1,300,000 rounds of Tracers
(4)
Winchester has informed Chinese representatives that at present it is unable to produce incendiary cartridges and that an [Page 917] understanding between Winchester and appropriate United States authorities has been reached according to which Winchester may obtain the necessary incendiary cartridges from the United States Government and will return to the United States Government the type of cartridges it desires subject to the price adjustment.
(5)
In case the United States Government may desire a particular type of cartridges for the replacement of the incendiary cartridges to be loaned to China, the Chinese Government would appreciate it if the United States Government would indicate what type it desires.
(6)
The United States Government may appoint an officer to witness the signing of the contract to be made between the Chinese Government and Winchester and to inspect the manufacturing. It may indicate also how the ammunition to be returned should be packed.
(7)
No matter [how?] the said ammunition is to be turned over to China under the 8⅓ Group Program or to be loaned to China, the Chinese Government requests that deliveries will be made from stocks in the Pacific, so that it could be made available to the Chinese Government at the earliest possible time. It will be appreciated if the ammunition would be properly linked and packed for export.