893.24/12–1547: Telegram
The Ambassador in China (Stuart) to the Secretary of State
[Received December 15—12:56 p.m.]
2401. Minister-Counselor discussed with Dr. Wang today Deptels 1457, December 2, 7 p.m. and 1501, December 11, 6 p.m. Dr. Wang, while not professing too intimate knowledge of details, said he thought principal Chinese preoccupation was with obtaining delivery and assurances [Page 929] of adequate spare parts. He promised investigate matter and inform us.
Later, Vice Minister George Yeh called Minister-Counselor to Foreign Office. Yeh since mid-November has under Dr. Wang’s direction had centered in his office all matters dealing with acquisition military supplies and equipment. Yeh says this move was to provide proper governmental channel for acquisition of supplies and equipment and to expedite needed acquisitions. He hoped we would see continued improvement as his grasp of problem improved.
He explained that reason Chinese now sought only 150 C–46 aircraft was that Chinese technicians in United States had reported available only 150 which were serviceable without cannibalization. Chinese Embassy, Washington, has reported order definitely placed for 150 and Yeh assured us funds for cash payment are available United States and payment would be made on demand.
Difficulty regarding supplies in Zone of Interior arose he said out of report from Dr. Koo that original cost aircraft engine overhaul plants stored Honolulu is 17,800,000 rather than less than 2 million as Chinese had hitherto been led to believe by Mr. Marshall and by AAG here. Yeh says Chinese desperately want plants in question but must know sums involved before instructions Embassy, Washington, conclude purchase. In asking for credit terms in connection purchase supplies from Zone of Interior, Chinese were acting he said on precedent established by Soong–McCabe agreement August 1946. Cash was on hand in the United States however, and Embassy would be instructed pay 17½¢ without quibbling immediately question original cost Honolulu plants clarified.
Yeh said it would be helpful if he could be advised (1) overall original cost supplies and equipment investigated 8⅓ group program, including (2) breakdown of costs between elements of program located in United States and those located in Hawaii.
Yeh then endeavored turn conversation to question ammunition, saying Chinese had placed order December 9 with Winchester Arms for 6 million rounds 50 calibre which would not be delivered until late spring. He inquired when Chinese might expect action on Mr. Marshall’s promise to endeavor to advance this type ammunition from stocks Pacific Theater. He also mentioned memorandum which Dr. Koo left in State Department November 5, listing immediate army needs for ammunition again expressing hope we could obtain information. On both these questions we told Yeh he should seek information through Chinese Embassy, Washington, that being channel preferred by Department for such requests.
George Yeh gave every indication of being perturbed by reaction [Page 930] in Department of Chinese procrastination as mentioned Deptel 1501, and of a sincere desire to improve the situation, now that he has authority in Foreign Office.