Office of the Historian

893.248/7–1147

Memorandum by the Chief of the Division of Chinese Affairs (Ringwalt) to Brigadier General Marshall S. Carter

[Washington,] July 11, 1947.

Responsive to your request for a statement on the present status of the 8⅓ group program, I have set forth hereunder a summary of the most recent estimates available to the War Department and OFLC:

1. To complete 8⅓ program $141,200,000
2. Transfers already completed $30,000,000
3. Value of Material available for transfer:
(a) From Zone of Interior $16,435,476
(b) From Pacific sources 5,076,928
Total Available
21,512,404
4. Transferred and available for transfer 51,512,404
5. Estimated shortages $89,687,596

In case you are interested in a further breakdown of these figures, [Page 872] I have attached hereto the following tables supplied me yesterday by OFLC:

1.
Estimated Value of the Chinese Air Force 8⅓ Group Program.
2.
Completed transfers from China.
3.
Aircraft and Material available from Pacific sources.

We have not yet entered into formal negotiations with the Chinese for the acquisition of these supplies. OFLC has been withholding action pending the receipt of more definite information from the War Department and field representatives of OFLC as to the quantity and type of supplies which can be made available. Dr. S. C. Wang of the Chinese Supply Commission has asked informally that these supplies be considered as having been included in the Surplus Property Sales Agreement of August 30, 1946, or failing that very liberal credit terms. It is my understanding that OFLC will ask for cash payment but is prepared to make very liberal price concessions.

Neither the Army or OFLC can accept the costly and time-consuming procedure required in making an item by item check. OFLC hopes that each local deal by depot should be a complete transaction in itself and that the price established for any particular deal should be such that it would afford adequate coverage for any disparity in condition, type or quantity.

A[rthur] R. R[ingwalt]
[Annex]

Memorandum Prepared by the Office of the Foreign Liquidation Commissioner

Estimated Value of the Chinese Air Force 8⅓ Group Program

Military Civilian Total
Aircraft $ 3,500,000 $ 3,700,000 $ 7,200,000
Air Force Supplies 61,000,000 41,000,000 102,000,000
Common User Items 2,000,000 21,000,000 23,000,000
Ammunition 9,000,000 9,000,000
Total $75,500,000 $65,700,000 $141,200,000

Value of Property Already Transferred and To Be Transferred as Compared to Total Requirements

Total Requirement Total Available Percentage
Aircraft $ 7,200,000 $ 6,500,000 90
Air Force Supplies 102,000,000 39,029,754 38
Common User Items 23,000,000 3,282,650 14
Ammunition 9,000,000 2,700,000 30
Total $141,200,000 $51,512,404 36
[Page 873]

Completed Transfers From China*

Military Civilian Total
Aircraft $2,800,000 $3,700,000 $6,500,000
Air Force Supplies 500,000 4,800,000 5,300,000
Common User Items 200,000 3,000,000 3,200,000
Total $3,500,000 $11,500,000 $15,000,000

Completed Transfers From India–Burma Theater (Hogan Project)*

Military Civilian Total
Air Force Supplies $9,000,000 $6,000,000 $15,000,000

Total Value of Completed Transfers

Military Civilian Total
Aircraft $2,800,000 $ 3,700,000 $ 6,500,000
Air Force Supplies 9,500,000 10,800,000 20,300,000
Common User Items 200,000 3,000,000 3,200,000
$12,500,000 $17,500,000 $30,000,000

Aircraft and Matériel Available From Pacific Sources

Military Civilian Total
Air Force Supplies 000 $4,994,278 $4,994,278
Common User Items 000 82,650 82,650
Ammunition 000 000 000
Total 000 $6,575,599 [sic] $5,076,928

Matériel Available From Zone of Interior

Military Civilian Total
Air Force Supplies $7,400,000† $6,335,476 $13,735,476
Ammunition 2,700,000† 000 2,700,000
Total $10,100,000 $6,335,476 $16,435,476

Total Value of Aircraft and Matériel To Be Transferred

Military Civilian Total
Air Force Supplies $7,400,000 $11,329,754 $18,729,754
Common User Items 000 82,650 82,650
Ammunition 2,700,000 000 2,700,000
Total $10,100,000 $11,412,404 $21,512,404
  1. Lend-Lease and surplus arrangements per Mr. Vincent’s memo to Secretary of State, 25 February 1947. [Footnote in the original; memorandum not found in Department flies.]↩
  2. Lend-Lease and surplus arrangements per Mr. Vincent’s memo to Secretary of State, 25 February 1947. [Footnote in the original; memorandum not found in Department flies.]↩
  3. Suspended transfer [Footnote in the original.]↩
  4. Suspended transfer [Footnote in the original.]↩