The Acting Secretary of State to the Administrator of the War Assets Administration (Littlejohn)

My Dear General Littlejohn: The Department of State has been informally queried by the War Assets Administration regarding the advisability of selling to the Chinese Supply Commission a considerable quantity of surplus small arms ammunition.

The Department of State interposes no objection to this sale or to subsequent sales of military items of equipment and ammunition, providing there is appended as part of the sales agreement the following proviso: [Page 756]

“It is the desire of the United States Government that these munitions be destined for an integrated and representative National Army under a coalition government. It is to be understood by the Chinese Government that if at the time for delivery, it appears to be in the best interests of the United States, this contract can be terminated by the United States subject to such financial adjustments as may be subsequently negotiated.”

Sincerely yours,

Dean Acheson