Foreign Relations of the United States, 1947, General; The United Nations, Volume I

811.24/6–2647

Memorandum by the Assistant Secretary of State for Occupied Areas ( Hilldring ) to the Under Secretary of State ( Acheson )

secret

Washington , June 26, 1947.

Subject: Relative Priorities for the Receipt of U.S. Military Supplies

Discussion:

1. On March 13, 1947 you approved an action of the Policy Committee on Arms and Armaments which established a relative priority for receipt of U.S. military supplies. A copy of this action is attached and is marked Tab “A”.¹

2. By reason of changed conditions in World affairs since March 13th the Policy Committee on Arms and Armaments on June 20th revised its previous recommendations, and directed the Deputy Chairman to submit new recommendations to you for action. The action of the Policy Committee of June 20th is attached hereto and is marked Tab “B”.

3. The War Department requires a revised policy on these priorities in order to apportion the available surplus military equipment among the various programs requiring implementation. The Navy Department likewise requires this guidance.

4. It is necessary for the State Department to establish its position at this time on these relative priorities. Thereafter SWNCC will be asked to coordinate this policy.

Recommendation:

5. It is recommended you approve the relative priorities established by the Policy Committee on Arms and Armaments with the conditions imposed in Tab “B”.²

[Annex—Tab “B”]

Summary of Action Taken at a Meeting of the Policy Committee on Arms and Armaments, Washington, June 20, 1947

PCA S–49

1. Relative Priorities for Receipt of U.S. Military Supplies (D–13/9)³

The Committee revised its previous recommendations (see S–37, p. 1, #1⁴) as follows: The Committee recommended priorities for the receipt of United States military supplies by the following countries, in the order of the groups listed below:

• I—Greece, Turkey
• II—Italy, Iran,^* China (81/3 Air Group Program only)
• III—Canada, Republic of the Philippines, American Republics

The Committee further recommended that this action be subject to the following conditions:

a. This arrangement of priorities is a temporary one and it must be revised at frequent intervals.

b. Priorities alone will not furnish final action in reserving or delivering equipment to a foreign government. Decisions concerning such action will take into consideration the following:

(1) The quantity of important items available for transfer in relation to the overall demand for such items.

(2) The importance to each nation of particular types.

(3) The percentage of requirements to be assigned after consideration of (1) and (2) above.

The Committee agreed that by reason of Congressional enactments the conditions outlined above do not apply to the requirements of Greece and Turkey for military supplies since these countries should be furnished such equipment to the fullest extent possible. The Deputy Chairman was directed to communicate this revised recommendation to the Under Secretary and, if approved, to representatives of the War and Navy Departments.

1. See the Minutes of the 37th Meeting of the Policy Committee on Arms and Armaments, March 7, p. 722.
2. A marginal notation indicates that this memorandum was approved.
3. PCA Document D–13/9a, June 20, a revision of D–13/9, June 13, also describes the decision indicated in the present Summary of Action. (Department of State Disarmament Files)
4. S–37, the Summary of Action of the 37th Meeting, is not printed, but see the Minutes of that meeting, p. 722.
5. This priority includes civilian end-use items, transport planes, and spare parts only for all equipment transferred to China under this Program. [Footnote in the source text]