Foreign Relations of the United States, 1948, The Far East: China, Volume VIII

893.50 Recovery/11–1648

Memorandum of Telephone Conversation, by the Deputy Chairman of the Policy Committee on Arms and Armament (Swett)

[Washington,] November 16, 1948.

Col. Freeman⁶⁰ phoned in the late afternoon, 15 November, with reference to priority to be given to implementation of the $125,000,000 military assistance authorization for China. He referred to the Secretary’s letters of August 9 and 13⁶¹ concerning order of priorities for implementation of military assistance programs, and asked whether the Department would concur in giving China an overriding priority above Greece and Iran at this time, particularly since the $125,000,000 authorization expires in April. He mentioned particularly the handling of items recently approved amounting to $25,000,000 and $37,000,000 under that authorization.

Noting that the Secretary’s August 9th letter referred to the fact that a large part of the China requirements were not in conflict with the Greek requirements, I emphasized that the priorities indicated in that letter are still in force, except insofar as the President’s policy for fulfilling urgent China needs might cut across the Greek/Turkish or high priority programs. I stated as an informal opinion that the Department would concur in a China priority above that for Greece for the $125,000,000 project provided that there is no important conflict with the Greek/Turkish requirement for specific items, and that I would consult with FE in the morning.

Today I informed Mr. McAfee (FE) of the conversation with Col. Freeman, stating that Army Logistics had indicated that immediate priority for China requirements would not conflict in any way with Greek requirements. Mr. Berry⁶² talked with me later, having been consulted by Mr. McAfee; NEA (Mr. Jernegan⁶³) had requested information as to the effect if the China emergency assistance now in hand is given priority above the Greek/Turkish programs. Mr. Jernegan had also requested comment from Col. Mayo, P & O, on this point.

I informed Col. Freeman that the Department offices concerned (NEA, U/GT,⁶⁴ O⁶⁵) concurred in the overriding priority for China on the understanding that the effect of such priority on implementation of the Greek program will be minor. Col. Freeman stated that Logistics informs him that the effect will be “negligible”; I requested him to include that statement in the P & O record. He stated that it is shown in the Army Department memoranda for record, and that the P & O direction in that case will limit the Chinese overriding priority to transactions involving the $125,000,000 grant.

60. Lt. Col. T. B. Freeman, Plans and Operations, Army General Staff.
61. For letter of August 9, see p. 135; letter of August 13 concerning priorities not found in Department files.
62. J. Lampton Berry, Special Assistant to the Director of the Office of Near Eastern and African Affairs (Satterthwaite).
63. John D. Jernegan, Chief of the Division of Greek, Turkish, and Iranian Affairs, Office of Near Eastern and African Affairs (NEA).
64. Special Assistant for Greece and Turkey (McGhee).
65. Assistant Secretary for Occupied Areas (Saltzman).