Foreign Relations of the United States, 1949, The Far East: China, Volume IX

893.24/4–749

Memorandum by the Chief of the Division of Chinese Affairs (Sprouse) to the Director of the Office of Far Eastern Affairs (Butterworth)

[Washington,] April 7, 1949.

Last December the Chinese attempted to procure tanks from surplus stocks in the United Kingdom. At that time the Department in a telegram to London⁷¹ stated: “Whether or not tanks might be useful in UK or for Western Union rearmament, sending of any tanks from UK or Western Europe to any other part of the world when Western Union countries are actively seeking US military equipment would be most inadvisable”. In a subsequent telegram to London⁷² the Department again stated: “Department prepared inform Chinese shipment military materiel usable or not from UK and WE undesirable view effect publicity such transfer might have on foreign military assistance programs”.

Dr. Wang⁷³ called Friday on Mr. McAfee to state that the Chinese had located 85 tanks in the UK which had been sold to a private contractor and would be scrapped unless other use was found for them. Dr. Wang asked if it would be possible to have this Government withdraw its objections to such exports from the UK and Mr. McAfee indicated that he would look into the matter. Mr. McAfee has since been in communication with Mr. Matlock⁷⁴ of Eur and Mr. Fales⁷⁵ of BC, the latter of whom has indicated that in his opinion BC at this time might be even more firmly opposed to the export from the UK or Western Europe of any type of military materiel in view of the military assistance program which was not public at the time the earlier decision was made.

It is understood that the Chinese have also been attempting to obtain import licenses (for import into the U.S. and subsequent reconditioning here) on 30 armored motor vehicles, carrying a 75 mm. cannon, which they believe are available from stocks in the UK.

In view of the foregoing, the Department may be put in the position of preventing the Chinese from acquiring military stocks discarded by foreign countries as useless. It seems desirable, therefore, that this matter be pursued further, and probably at a higher level. If you do not think it appropriate to bring it up in the Under Secretary’s staff meeting, I will get in touch with Ted Achilles⁷⁶ and ask him what can be done.

71. Telegram No. 4610, December 10, 1948, not printed.
72. Telegram No. 4777, December 28, 1948, p. 472.
73. Wang Shou-chin, Counselor of the Chinese Embassy.
74. Clifford C. Matlock, Special Assistant to the Director of the Office of European Affairs (Hickerson).
75. Herbert P. Fales, Assistant Chief of the Division of British Commonwealth Affairs.
76. Deputy Director of the Office of European Affairs.