893.24/7–2347
The Secretary of War (Patterson) to the Secretary of State
Dear Mr. Secretary: As a result of our discussion of the question of providing ammunition to the Chinese National Army at our meeting of June 26, the War Department has investigated the availability of ammunition which might be transferred to the Chinese Army.
With the exception of .30 caliber rifle ammunition, all essential items listed (in the so-called “Gillem Report”) by the Chinese as their requirement for a six months’ supply of U. S. type ammunition can be met from existing excesses or from war reserve. In the latter case it would be necessary to declare some war reserve ammunition surplus and dispose of it through the Foreign Liquidation Commission. Only about 8⅓ by weight of this requirement comprise true surpluses in the Pacific and Far East, the remainder would have to be shipped or replaced from the United States. The .30 caliber ammunition requirement can be fully met only by reducing the stocks now being held for Western Hemisphere Defense and Universal Military Training programs by approximately 20%. These programs, however, are not yet approved, and could not be implemented for some time subsequent to approval.
The War Department has determined that private American industry would be interested in selling ammunition to the Chinese, and has the productive capacity to meet the immediate Chinese requirements, but would not be able to begin to fill Chinese orders for several months. The impact on War Department stocks of an emergency supply of ammunition might possibly be lessened or eliminated through replacement by Chinese orders on U. S. industry.
If the U.S. Government decides upon the immediate transfer of ammunition to China as an emergency expedient, the question of a continuing supply will surely arise before this ammunition is exhausted. [Page 880] If, as a result of the long range comprehensive analysis contemplated in your letter of 4 March, U. S. policy were to envisage such a continuing supply, the best arrangement would appear to be the purchase of ammunition by the Chinese directly from U. S. industry, perhaps from plants which we might wish to encourage private industry to establish in China itself. Otherwise, we would be faced by a situation wherein it is now calculated it would not be reasonably possible to continue even a partial supply for more than two years from stocks now held for civilian components and for other War Department programs. It is impossible to prepare any firm estimate of our capability from these sources since the Greek and Turkish, and possibly other programs, are not yet fully developed.
Sincerely yours,