893.24/12–1547: Telegram
The Acting Secretary of State to the Ambassador in China (Stuart)
1534. Total procurement cost equipment in Zone of Interior declared surplus for sale to China under 8⅓ Group Program approximately $26,500,000. That portion of above located in Hawaii, including engine overhaul plant, approximately $1,500,000 (Embtel 2401 Dec 15 para 4). Chinese will be expected to pay cash at rate of 17½ percent procurement cost or about $4,637,500, and deposit 15 percent procurement cost to cover packing, handling and transportation to port of shipment. Chinese negotiators so informed.
Chinese Ambassador informed Dec 16 we are now prepared to negotiate sale of surplus ammo in Marianas as well as combat aircraft to complete 8⅓ Program in so far as available. As aircraft are specifically excluded from transaction described above, negotiation for their sale will be made basis of separate contract. Negotiations for sale of surplus ammo will of course be conducted at Shanghai, but it is now understood from Dept of Army that amount involved will not prove to be very large.