893.24/12–247: Telegram
The Acting Secretary of State to the Ambassador in China (Stuart)
1457. Immediately following conclusion of negotiations for sale of 8⅓ Group Program supplies in Pacific Dept notified Chinese Emb [Page 924] and Capt Lubochez notified Gen Kiang of willingnes FLC speedily to conclude sale of supplies in Zone of Interior. This would include very valuable aircraft engine overhaul plant stored at Honolulu crated and ready for shipment.
It was due to Dept’s intervention that FLC instructed Capt Lubochez to accept Chinese counteroffer of 12½¢ for Zone of Pacific supplies. Similarly Dept arranged with FLC that it be prepared to accept minimum figure of 17½¢ for Zone of Interior supplies. This price cannot be further reduced because of commitments to other countries for similar surplus. FLC first offer of 30¢ has not elicited reply from Chinese Emb which is now being encouraged by Dept to submit counteroffer in neighborhood of 17½–20¢. Dept desirous of effecting conclusion of sale in near future.
At instance of Dept, Chinese Govt is being offered surplus C–46 aircraft in Zone of Interior at price of about $5,000 each (procurement cost $300,000). Chinese originally stated they planned to buy up to 350 but are now talking in terms of 150.
Please make above info available to Chief, Air Division, AAG. Minister-Counselor4 should feel free to convey substance of above personally to FonMin.
- Lewis Clark.↩