893.796/1–1348: Telegram
The Consul at Shanghai (Pilcher) to the Secretary of State
[Received January 13—6:13 a. m.]
82. ReConGentel to Department 83, to Nanking 62, dated January 13.60 As part of deal with Chinese Government providing for establishment civil air transport, Taylor61 said that Government expected CAT would be used to support military operations in Manchuria. Taylor made it clear that Government did not expect CAT to move arms and ammunition by air, but did expect CAT to fly food and other supplies into battle areas for support of troops. He further said that as part this deal it is possible CAT will be requested to operate without recompense CCAA62 communications system in China.
CAT will also be expected to operate CCAA training school for private personnel flying at Hungjao airport. Taylor, of course, welcomes this opportunity further develop private personal flying as he is Piper Cub representative here. He then volunteered that all CAT’s pilots are former US Army Air Force airmen who could intelligently fly into battle areas. He mentioned that recent loss of aircraft by CATC63 and CNAC64 in Communist controlled areas could be attributed to the fact pilots did not possess enough skill in flying in besieged areas.
Taylor requested that none of this information concerning CAT’s proposed activities be forwarded Dept or elsewhere. At close conversation Taylor said CAT had already received request directly from General Chen Cheng urging CAT despatch planes immediately with supplies to northern area.
When queried as to whether CAT would be provided sufficient foreign exchange to meet its requirements, Taylor said he understood US $200,000 a month would be made available to CAT. When Civil Air Attaché65 mentioned that at present CNAC and CATC were obtaining only approximately US $250,000 each month and were operating larger number of aircraft, Taylor said that while CAT would register 18 planes with CCAA it would actually operate planes.
Sent Dept 82, repeated Nanking 62.