893.24/2–648: Telegram

The Ambassador in China (Stuart) to the Secretary of State

241. Cheng Chieh-min, Vice Minister National Defense, expressed to me today his worry over the evidence that functionaries of the Chinese Government in the US were being too cautious in dealing with our responses to Chinese requests in respect of military acquisitions. He said, and I confirm, that he is one of the few people who have access to Generalissimo without prior appointment. He added that Generalissimo had vested in him authority to effect necessary military acquisitions.

We find possible confirmation in this in that in our conversations at Foreign Office, we have been told that Executive Yuan follows practice of referring to Foreign Minister all applications for foreign exchange for acquisition military supplies, with idea of centralizing control of procurement and reducing to minimum foreign exchange commitments, but that this procurement procedure has encountered difficulties from time to time when Generalissimo has specifically authorized some agency to procure certain products and Executive Yuan and Foreign Office are placed in position of being mere rubber stamps. Cheng Chieh-min suggested that with his authorization from Generalissimo [Page 11] acquisition of military supplies could be expedited and facilitated if direct contact could be established between him and OFLC. He suggested in this connection possibility of agreement in general terms between him and OFLC under broad terms of which individual acquisitions could be consummated.

To us it seems that procurement methods of Chinese Government have been so confused that it would be desirable for us to encourage such centralization as that envisaged by Cheng Chieh-min. As we see it, one of the principal difficulties in the procurement situation has been the number of agencies involved, with the result that at any given moment the Chinese Government is unaware of its actual materiel position.

We wonder, therefore, whether with the arrival of General Barr33 the opportunity may not present itself for centralizing and channelizing future requests of the Chinese Government for assistance in procurement of military supplies. Barr’s expert advice should aid us materially in formulating over-all policy and in deciding upon specific requests.

May I suggest, therefore, that the Department give consideration to desirability of authorizing me to suggest to Generalissimo that interests of China and US in this field might be served if he were to authorize Cheng Chieh-min to submit to Barr all future requests in military field in order that Barr may be in position to advise me as to recommendations I should make to my Government. This procedure, or some variation of it, would seem to me highly desirable.

In any event I should appreciate Department’s instructions as to the nature of reply I should make to Cheng Chieh-min.

Stuart
  1. Maj. Gen. David G. Barr, newly appointed Chief of the Army Advisory Group in China.