893.248/110: Telegram
The Chargé in China (Peck) to the Secretary of State
[Received March 28—11:45 a.m.]
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.
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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.