893.248/7–2346
Memorandum by the Chief of the Division of Chinese Affairs (Ringwalt)
Mr. Hamilton19 telephoned this morning in regard to negotiations now in progress between FLC and General Mow, of the Chinese Commission on Aeronautical Affairs, for the purchase, in connection with the Chinese Air Force Training Program, of the following planes:
| Type | Amount |
| PT–17 | 211 |
| BT–13 | 137 |
| AT–6 | 105 |
| AT–11 | 20 |
According to Mr. Hamilton, all of these planes are surplus to the needs of the American Government and are located in this country. It appears that tentative conversations have been going on for some time and that the Chinese are now talking in terms of a million dollars for the planes plus an additional ten million dollars to defray the cost of reconditioning and packing for shipment to China. Mr. Hamilton indicated that the Chinese were hoping to obtain credit for the purchase of these planes.
I informed Mr. Hamilton that we would not wish to encourage the sale of this property to the Chinese Government at the present time. I said that we had a great deal of difficulty in collecting even a down-payment on the cost of the Air Force Training Program and that until the balance due had been received from the Chinese Government, we would probably not wish to consider selling any basic trainers such as the PT’s and BT’s. I said that it was my understanding that the AT–6’s and AT–11’s being susceptible of military [Page 782] use, we would prefer to hold up the sale of these planes until the political situation in China clarified. I added that in any case we certainly would not be interested at this time in offering China credit facilities in connection with the transfer of these planes to the Chinese Government.
Mr. Hamilton promised to keep me informed of developments.
- Minard Hamilton, Chief of the Disposal Branch of the Office of Foreign Liquidation Commission.↩