Foreign Relations of the United States, 1947, The Far East: China, Volume VII

893.34/10–3047: Telegram

The Ambassador in China (Stuart) to the Secretary of State

Nanking, October 30, 1947—1 p.m.
[Received October 30—8:39 a.m.]

2164. Chinese have completed study of draft agreement re transfer of naval vessels (Deptinstr 414, August 25⁷³) and suggest following changes:

1. Article 3 (c) to read “…⁷⁴ when requested by the Government of the Republic of China will (1) furnish plans, blueprints and documents without reimbursement; (2) furnish technical information and advice without reimbursement and (3) participate in and sign a conducted joint inventory of each vessel at time of delivery with⁷⁵ reimbursement.” Chinese naval authorities consider the joint inventory highly desirable in order that they may have as exact knowledge as possible of equipment received by their representative.

2. Chinese desire to have included with each vessel without reimbursement normal on board supply of ammunition. Admiral Murray, representing Admiral Cooke during discussions, has informed them that agreement contemplates transfer of vessels “as is”, that Subic Bay vessels are decommissioned and hence have no ammunition on board. Embassy and Admiral Murray consider that supplying ammunition should not be especially mentioned in agreement and that it is adequately covered in article 3 (b).

3. Chinese desire to have 3-inch guns on 4 DE’s at Green Cove Springs replaced with 5-inch guns. They are willing to pay for cost of change but may have to limit change to 2 vessels if cost high. If change is possible they desire approximate cost. If not possible to change guns they wish to have substituted for listed DE’s similar vessels of Rudderow class with 5-inch guns. Request apparently arises from fact that during recent northern operations Communist field artillery has been able to outrange 3-inch naval guns.

4. The Chinese state and Admiral Murray concurs that it will be impossible to train crews and remove 4 DE’s at Green Cove Springs within time set in agreement. Chinese therefore request final date for transfer these 4 vessels by December 31, 1948. Chinese contemplate towing Subic Bay vessels to Chinese ports. To insure compliance July 1 deadline Embassy and Admiral Murray consider highly desirable that individual dates for transfer of these vessels before July 1, 1948 be included in schedule A. Believe Chinese will agree.

5. Chinese expressed apprehension re part of article 2 beginning “from and after the delivery of said vessels” and have requested letter from Embassy confirming that claims, demands, losses, etc., are limited to those arising out of or connected with the transfer of the property in the use and operation thereof by Chinese from and after delivery of vessels. Also request letter include statement that possible Bofors claim is only claim of similar nature of which we are aware. Letter will be submitted to Executive Yuan by Foreign Office at time agreement submitted for approval. Chinese also desire any information re possible Bofors claim.

Copy this telegram sent to Admiral Cooke who will comment directly to Navy Department regarding technical aspects foregoing.

Chinese attitude indicates they will accept agreement as is but desire as favorable consideration as possible of points raised above. Department’s instructions will be appreciated.

Stuart

73. Not printed.
74. Omission indicated in the original telegram.
75. Marginal notation: “Copy received by Navy read ‘without’—though code room indicates State copy was received as printed here. Navy states that it is their understanding that ‘without’ is correct reading.”