893.24/6–749
Memorandum by the Acting Chief of the Munitions Division (Elliott) to the Deputy Director of the Office of European Affairs (Achilles)
You will recall that there are pending in the Munitions Division applications submitted by the Chinese Military Procurement Group for import from the United Kingdom into the United States and export from the United States to Formosa involving 85 Sherman tanks (without armament). The Chinese Ambassador, in a note dated April 11, 1949,92 has stated that these tanks would be reconditioned in the United States prior to exportation to China. Further, the Chinese Ambassador has stated that these tanks have already been purchased by the Chinese Government from a private concern in England.
[Page 528]The above requests were referred to Eur for opinion shortly after receipt and since that time a number of conversations have been held by officers in MD and Eur with Colonel Li and Mr. E. T. Cummins who is representing Commerce International, the concern in the United States which is planning to recondition the tanks.
Mr. Cummins reported to me, after a conversation he had with you on May 4, that Eur planned to obtain further information concerning the tanks, including an inquiry of the Embassy in London, and hoped to be in a position in the near future to make a recommendation on the licenses requested. Later, inquiry of your office by MD indicated that the problem would be the subject of discussions with Mr. Berkner.93
Although the tanks in question are to be reconditioned in the United States prior to shipment to Formosa, the Chinese are requesting what can be regarded as intransit privileges for material already purchased in the United Kingdom. Two months have elapsed since the Chinese requests were submitted. In view thereof, and the fact that further inquiries have been received from representatives of the Chinese regarding the matter, I would like to urge that Eur’s views on this problem be made available to MD at the earliest possible moment.