893.00/8–1348

The Secretary of State to the Secretary of Defense (Forrestal)

Dear Mr. Secretary: In a review of the military situation in China contained in his telegram no. 374 OAGA of July 24, 1948,98 General Barr points to the danger of a Communist attack on the southern flank of General Fu Tso-yi’s command coordinated with an attack from the north by uncommitted troops in Manchuria, which would force General Fu to withdraw to the northwest and result in eventual Communist capture of Peiping and Tientsin. In his telegram 090855Z of July 10 [9]99 and 160G05Z and 160609Z of July 16, 1948,1 Admiral Badger emphasizes the desirability of action to strengthen the position of National Government military commanders in north China, particularly that of General Fu Tso-yi, Commanding General in five critical north China provinces. Admiral Badger’s reports and other reports from U. S. official sources are unanimous in their praise of General Fu for his energy and ability in utilizing the forces and resources at his command against the Chinese Communists. They point out, however, that the National Government is furnishing very little military aid to General Fu and that the latter has not been able to purchase with resources in north China munitions from private firms in the United States and from Australia. Despite the importance of north China to the National Government, the latter has apparently been so unresponsive to the needs of this area that resentment has been aroused among the north China leaders with a resulting strengthening of the trend toward regionalism.

In view of the foregoing, I suggest for your consideration the desirability of ensuring that General Fu Tso-yi obtain an appropriate share of the matériel which the Chinese Government plans to obtain through the National Military Establishment from the proceeds of the $125 million grants authorized under Section 404(b) of the China Aid Act of 1948. Such action should not be taken, of course, without [Page 138] the concurrence of Generalissimo Chiang Kai-shek since it would be undesirable to treat independently with regional commanders because of the danger of promoting regionalism in China. It would, however, seem feasible and within the limits of General Barr’s relationship with the Generalissimo that he advise and urge strongly that General Fu Tso-yi be given an appropriate share of the military matériel obtained through the National Military Establishment from the proceeds of the $125 million grants. In his discussion of the matter, it would seem desirable that General Barr also obtain the Generalissimo’s concurrence to the direct diversion to the port of Tangku of matériel intended for General Fu’s command. If such concurrence could be obtained, it is suggested that the U. S. Army Advisory Group might take appropriate steps to ensure that the matériel in question actually reached General Fu’s command at Tangku.

I should appreciate receiving your comment on the above-outlined suggestions.

Faithfully yours,

G. C. Marshall
  1. Not printed.
  2. Telegram from the Commander of U. S. Naval Forces in the Western Pacific (Badger) to the Chief of Naval Operations (Denfeld), p. 170.
  3. Telegram No. 160605Z not printed; for No. 160609Z, from the Commander of U. S. Naval Forces in the Western Pacific (Badger) to the Chief of Naval Operations (Denfeld), see p. 171.