The Chief of the Division of Far Eastern Affairs, Department of State ( MacMurray ) to the British Chargé ( Craigie )
My Dear Craigie: By way of reply to your note of yesterday,34 I am venturing to submit to you herewith a somewhat fuller statement of the facts in regard to the China Arms Embargo (with particular reference to airplanes) than is contained in the memorandum which you so kindly submitted for my revision. From this somewhat more detailed statement, I hope you can take what you feel necessary in order to lay our views before your Government; and although this is not the manner of comment that you suggested, I hope it will prove as convenient for your purpose.
In addition to the bare recital of the facts as detailed in the enclosed memorandum, I should perhaps say that in the event of any contract being made by an American firm for the supply of airplanes to China, this Government would of course feel obligated to scrutinize the contract itself and the contemplated financial arrangement thereunder, with a view to satisfying itself that the planes were not in fact intended for military uses, and that the arrangements for purchase did not involve any infringement upon the field of activities reserved to the Consortium.
I am returning herewith a copy of the statement which you enclosed with your letter.34