893.796/301: Telegram

The Ambassador in China ( Gauss ) to the Secretary of State

279. General Magruder1 has informed me through the Naval Attaché that General Ho Ying-chin2 has stated to him that he has been considering for some time desirability of placing the operation of the commercial air services, that is, China National Aviation Corporation and Eurasia Corporation, under military control and that he proposes in the near future to recommend to the Generalissimo3 that they be placed under the National Commission on Aeronautical Affairs.

While this appears to be a rational measure under the war situation, it is pointed out that it would probably result in the demoralization of the American-operated China National Aviation [Corporation]. The Aeronautical Affairs Commission is notoriously inefficient and there have been recent instances of interference with CNAC planes by [orders?] of that commission resulting in overloading of planes.

I suggest that this matter be discussed with Bixby4 of Pan American Airways and Bond5 of CNAC who recently left for the United States.

I am taking no action unless and until instructed but consider matter of importance to efficient and safe operation of air services and also of importance to American aviation interests for the future. I am under the impression that the proposal may violate the agreement with Pan American Airways. I believe we could have the whip hand in this matter through reservations we might make if necessary on Lend-Lease planes to be delivered for the China air services.

Gauss
  1. Gen. John A. Magruder, Chief of United States Military Mission to China.
  2. Chinese War Minister and Chief of the Chinese General Staff.
  3. Generalissimo Chiang Kai-shek, President of the Chinese Executive Yuan (Premier) and Allied Supreme Commander in the China Theater.
  4. Harold M. Bixby.
  5. W. L. Bond, General Manager, China National Aviation Corporation.