893.248/110: Telegram

The Chargé in China ( Peck ) to the Secretary of State

[Extracts]

218. McHugh reports that Dr. Kung signed a contract on March 25 with Al Patterson46 and Le Lewis47 under the loan agreement reported in my telegram No. 152, March 3, noon,48 for the purchase of the following airplanes: 50 single seat and 4 dual control Seversky pursuits, 25 Chance Vought navy dive bombers and the following training planes: 50 Ryan primary, 20 of the same make advanced pursuit, 50 North American basic. The total order which quotes the planes complete with instruments and armament plus 20% of their value in spare parts aggregates $8,800,000 United States currency. The final terms are understood to be one-fourth cash and the balance in equal installments over a period of 30 months with simple interest at 6% secured only by bearer notes signed by Dr. Kung. Delivery is to commence f. o. b. at factory within 2 months of date of signing of contract and to be completed in 8½ months.

. . . . . . . . . . . . . .

Repeated to Peiping for the information of the Naval Attaché; to Shanghai for the Commander-in-Chief of the Asiatic Fleet, and to Hong Kong.

Peck
  1. Capt. Allen L. Patterson, of China Airmotive Co., New York.
  2. L. A. Lewis, of China Airmotive Co., New York.
  3. Not printed.