893.796/2–146: Telegram
The Secretary of State to the Embassy in China
204. For General Marshall87 from Colonel Davis.88 Following is transmitted for your information and constitutes best information available here on present status of transport type aircraft made available to Chinese together with related training programs. Data here is not as complete as that available in theater either as to past performance or future requirements. Insofar as future planning for commercial aviation in China is concerned, there is a lack of information here as to what the Chinese program for civil aviation is and, therefore, what surplus aircraft it expects to obtain from FLC.89 From a military point of view, the War Department is being guided in its aid to the Chinese Air Force by the 8–⅓ air group plan which was concurred in principle by yourself and the Generalissimo.90 (Radio CFBX 21204, dated 25 January, from ComGenChina91). This latter program includes one group of C–47’s and one group of C–46’s.
Part I. Surplus Planes Purchased from the U. S. Chinese National Aviation Corporation, which is owned 80% by the Chinese Government and 20% by the Pan American Airways, recently purchased as surplus from FLC 8 C–47’s and 3 C–53’s. It is also operating an additional 20 C–47’s and 16 C–46’s, which were obtained under lend-lease prior to V–J Day92 and which are still in their possession, according to Mr. William Bond of CNAC, who recently visited the Department, and is source of CNAC data in this paragraph. CNAC recently leased six C–54B’s from FLC and contemplates using these planes on proposed routes to the Philippines, Singapore, Japan, and the South Seas. C–54B’s are under allocation by the Surplus Property Administration, and supply is extremely limited.
The Central Aviation Transport Corporation (CATC) is owned by the Chinese Government. In December, it purchased 10 surplus C–47’s for cash from FLC in Calcutta. It is understood here that until this purchase it had been using 14 Japanese transport aircraft similar to the DC–3.
[Page 768]No other transport type aircraft have been sold to the Chinese by FLC although the Great China Aviation Corporation, which is sponsored by the Chinese Youth Movement, recently contacted FLC in regard to acquiring surplus transport aircraft, but nothing concrete has developed in this matter. There are available a considerable number of surplus C–47’s and C–46’s in the Pacific and C–54A’s in the U. S. which could meet Chinese requirements. All surplus planes are sold or leased for cash. However, in the case of China, it is believed desirable to sell surplus planes as offset against U. S. Yuan debt to China. For your information there follows the Surplus Property Administration prices for various types of surplus planes. Column A is the cash purchase price and Column B is the rate per annum on lease for 5 years:
| A | B | |
| C–54A | $75,000 | $16,000 |
| C–54B | 90,000 | 24,000 |
| C–53 | 25–40,000 | 8,000 |
| C–47 | 20,000 | 4,000 |
| C–46 | 25–40,000 | not available |
SPA and FLC understandably desirous of selling rather than leasing planes, and will lease only in exceptional cases. Column B figures are minimum.
Part II. Lend-Lease. See paragraph 5A, Deptel 101, 17 January.93 No transport type aircraft have been turned over to the Chinese under civilian lend-lease. Therefore, this part deals only with military lend-lease. From V–J Day to December 15, 1945, General Wedemeyer transferred to the Chinese Government for the Chinese Air Force, under lend-lease, 68 C–47’s and has indicated that he will turn over to them an additional 40 C–47’s when the Chinese have crews available to man these planes. Prior to V–J Day, U. S. turned over to the Chinese Government on lend-lease 72 C–47’s, 24 C–46’s, and 14 C–53’s for use by CNAC and CAF. Firm data concerning the turnover of lend-lease planes to China is available only until V–J Day because of time lag required for receipt of transfer records. Types of planes useful for commercial operations, which will include those C–47’s and C–46’s initially transferred as lend-lease and used by CAF for troop carrying purposes, according to State Dept view, should be sold to Chinese at Surplus Property Administration prices at time of over-all negotiations and value offset against U. S. Yuan debt. If Chinese unwilling to offset value against Yuan debt, matter of payment will be decided upon at time of over-all agreement.
[Page 769]Part III. Status of Chinese Air Force Training Program. There are now 634 pilots and 700 non-pilot air crew members training in the U. S. 1220 trainees and 50 interpreters and leaders (commanders of a group of men) are in China scheduled to come to the U. S. in increments of 300 at 2-month intervals. By direction of the President, foregoing, which was approved prior to V–J Day, will be continued until 30 June 1946. Disposition thereafter is dependent on examination of over-all Chinese assistance programs in compliance with President’s directive sent to you in Deptel 136, dated 22 January.94 Chinese request for transition of 103 B–25 crews to C–46 has been approved; the transition of 12 B–24 crews to C–54 training is awaiting Wedemeyer’s concurrence. Chinese have requested equipment for establishment of training schools in China. Lists being prepared so Chinese can request same from surplus property agencies.
IBT95 is presently holding as excess about 70% equipment necessary to establish 18 service groups and 4 depot groups in China for use by Chinese Air Force, based on plan for 18 group CAF. However, when the 8–⅓ group program is firm, it is contemplated that this service equipment will be reduced approximately 50%. This equipment earmarked on presumption it would be sold to Chinese as surplus property. General Wedemeyer has been advised and asked to get firm commitment from Chinese on amount desired and furnish shipping instructions to IBT. Wedemeyer stated that he had not been able to see you on this. Answer needed on this equipment to expedite closing IBT and still make equipment available to China.
Development of plans for provision of transport type aircraft for non-military purposes is dependent on preparation and approval of Chinese civil air program. No effective steps toward this end have been taken here; thus, future progress in this matter apparently rests upon the celerity with which Chinese formulate program which you can approve. [Davis.]
- General of the Army George C. Marshall, Special Representative of President Truman in China.↩
- Col. James C. Davis, General Marshall’s representative in Washington.↩
- Foreign Liquidation Commission.↩
- President Chiang Kai-shek.↩
- Not printed; Lt. Gen. Albert C. Wedemeyer was Commanding General, U. S. Forces, China Theater.↩
- September 2, 1945, official date of Japanese surrender.↩
- Post, p. 912.↩
- See footnote 8, p. 727.↩
- India–Burma Theater.↩