894A.24/12–649

Memorandum by the Assistant Secretary of State for Far Eastern Affairs (Butterworth) to the Secretary of State

Attached is a memorandum of a conversation66 with Mr. Graves, Counselor of the British Embassy, which foreshadows what the British Ambassador will say to you tomorrow regarding Formosa. Mr. Graves also left an aide-mémoire which is likewise attached.67

Also attached is a memorandum listing the military supplies which remain to be shipped to the Chinese Government on Formosa, some of which have been purchased from the $125 million grants and other items which have been procured by the Chinese with their own funds.

W. W[alton] B[utterworth]
[Page 439]
[Annex]

Memorandum

A list of military materiel procured or being procured for the Chinese Government by agencies of the U.S. Government under the $125 Million Grants which has not yet been shipped is as follows:

estimated as of november 1, 1949

Quantity Value
Light tanks 100 ea.
Scout Cars, M3A1 100 ea.
Motor carriages, 75 mm. Howitzer 125 ea.
Rifles, Auto., Brng., M1918A2 (BAR) 1,000 ea.
Mounts, combination, M23A1 for 37 mm. Gun (used on light armored car) 100 ea.
Shells for 4.2” Chemical Mortar 25,000 ea.
Tires (various) 7,000 ea.
Automotive spare parts $1,680,000
Weapons spare parts 85,000
Tools and tool sets 240,000
Raw materials (inclusive of gun powder) 1,850,000
Antimony sulphide (for vulcanizing rubber) 5,000 lbs.
Gyro stabilizers 100 ea.
Dry batteries 40,000 ea.
Radio sets 600 ea.
Radio spare parts 6,500
Electrical equipment (including one 5 KW Diesel driven generators per set) 12 sets
Medical supplies and equipment 995,000
Vacuum tubes 47,000
Naval spare parts (hull and engineering spares) 265,000
Aircraft snare parts 305,000
Plastic film 80,000

The foregoing is a listing of significant unshipped items. Miscellaneous other items requested by the Chinese Government remain to be procured and/or shipped. A rough estimate of the dollar value of all unshipped items, by federal agencies concerned, is as follows:

Army $6,793,500
Navy 310,000
Air Force 390,700
Treasury—Bureau of Federal Supply 500,000
$7,994,200

[Page 440]

The following list covers military materiel being procured by the Chinese through commercial sources in this country on which as yet unused export licenses have been issued. Some of the items listed are being procured with funds from the $125 Million Grants, but the exact quantity of such items is not known.

A. Items other than Aircraft and Aircraft Parts

1. Items approved for export

Quantity
Drop steel forgings $4,550
Tank spares 400 tons 60,000
Motor carnages tracks 40 sets 19,000
Motor carriages (in transit from U.K.) 30 ea. 75,000
Sherman tanks (in transit from U.K.) 85 ea. 300,000
Powder and ammunition 205,475
Propellant flakes and powder 668,520
Cartridges (in transit from Canada) 81,000,000 rnds 4,900,000
Ammunition,* .30 caliber 21,281
Shot firing cord 4,570
Motor carriages* 42 ea. 100,000
Light tanks and dozers 9 ea. 72,000
Mauser rifles & ammunition, 7.9 mm (in transit—Belgium) 4,215,000
Mauser rifles & machine guns, 7.9 mm (in transit—Belgium) 559,100
Telescopes and periscopes 2,300
Gun-sights 1,000
Gun-sight noise filters 45
Smokeless powder 3,355
Rocket igniters 5,500
Tanks spare parts* 200 tons 30,000

2. Items not yet approved for export but requested by the Chinese Government.

Used light armored cars* 200 ea. $50,000
Used tanks with flame throwers* 4 ea. 8.000
Tracked landing vehicles* 156 ea. 75,000
Staghound armored cars (in transit from United Kingdom) 200 ea. 200,000
Rifles and machine guns (in transit from Belgium) 84,000
Machine guns (in transit from Belgium) 3,000 ea. 1,395,000

B. Aircraft and Aircraft Parts

There are still valid export licenses for approximately $6,800,000 worth of aircraft and aircraft parts purchased commercially by the [Page 441] Chinese Government. As this total includes some $2,700,000 for 180 AT6 aircraft which have been reported by the Chinese to have been shipped on a continuing basis throughout this year, it is believed that a good portion of the $6,800,000 total has already been shipped, though customs reports on such shipments have not yet reached the Department.

  1. December 6, p. 435.
  2. Supra.
  3. Items for which the Chinese have made arrangements with Commerce International Trading Corporation for purchase from U.S. Army surplus stocks. [Footnote in the source text.]
  4. Items for which the Chinese have made arrangements with Commerce International Trading Corporation for purchase from U.S. Army surplus stocks. [Footnote in the source text.]
  5. Items for which the Chinese have made arrangements with Commerce International Trading Corporation for purchase from U.S. Army surplus stocks. [Footnote in the source text.]
  6. Items for which the Chinese have made arrangements with Commerce International Trading Corporation for purchase from U.S. Army surplus stocks. [Footnote in the source text.]
  7. Items for which the Chinese have made arrangements with Commerce International Trading Corporation for purchase from U.S. Army surplus stocks. [Footnote in the source text.]
  8. Items for which the Chinese have made arrangements with Commerce International Trading Corporation for purchase from U.S. Army surplus stocks. [Footnote in the source text.]