800.48 FAA/12–1647
Memorandum of Conversation, by the Director of the Office of Far Eastern Affairs (Butterworth)
| Participants: | Mr. Norman Armour, Assistant Secretary |
| Dr. V. K. Wellington Koo, Chinese Ambassador | |
| Mr. W. Walton Butterworth, FE |
The Chinese Ambassador called at his request on Mr. Armour this morning and stayed for almost an hour and a half. The principal purpose of his visit was to ascertain whether the Department was prepared to take the initiative for an appropriation, on the basis of the Congress’ action in including China in the enabling legislation for interim aid to Italy, France and Austria, and to obtain a commitment from the Department so to do. The Department’s position was fully explained to him by Mr. Armour.
Ambassador Koo also discussed at great length the question of military aid in general and ammunition in particular but he added nothing to the known Chinese attitude as previously expressed in conversations held recently and aide-mémoires presented. However, Mr. Armour took this occasion to notify Dr. Koo that the Department of the Army was now authorized to proceed with arrangements with a view to the sale by FLC on very reasonable terms of the ammunition remaining in the Marianas suitable for Chinese use and the Department of the Air Force would act similarly with respect to the completion of the 8⅓ Group Program, including combat planes in so far as the material was available and surplus to US needs.
Among other things, Ambassador Koo stated that the Chinese authorities had signed a contract with Olin Industries for the production of ammunition and the procedure was reiterated to him whereby the Department of the Army, at the request of the manufacturing company, would advance to that company, for subsequent replacement, supplies from Army depots at home or, if it could be arranged, abroad. It was evident from a number of remarks which Dr. Koo made that the Chinese authorities, as sometimes is their wont, fluctuated, on the one hand, between a desire to take speedy action to fulfill their urgent and real needs and, on the other, to delay and bargain [Page 931] in the hope of obtaining facilities on favorable or gratis terms. In this connection he was urged to use his authority to the end that the 8⅓ Group contract for the Zone of the Interior supplies be speedily concluded as a result of the meeting which would take place this afternoon in the Office of the Foreign Liquidation Commissioner, at which the Chief of the Division of Chinese Affairs and the Minister of the Chinese Embassy would be present.
[Here follows a paragraph regarding convoking of a Japanese peace conference.]