893.50 Recovery/9–1348
The Secretary of State to the Secretary of Defense (Forrestal)
Dear Mr. Secretary: With reference to your letter of September 13 with the enclosed copy of a memorandum from the Joint Chiefs of Staff on the subject of “Military Aid for Chinese Armies”, I am in agreement with the position of the Joint Chiefs taken in that memorandum.
The fact of the reported presence in the Gulf of Chihli of unidentified submarines and the possibility of Chinese Communist small craft in those waters makes the matter of the transshipment of the munitions from Tsingtao to Tangku a subject for further consideration. It is desirable that we take appropriate steps to insure that the material in question actually reaches General Fu’s command at Tangku and I see no reason why American observers might not accompany the shipments in order to insure proper delivery. But I suggest for your consideration the importance of instructing Admiral Badger in the matter of the transshipment of these munitions from Tsingtao to Tangku in order to minimize the hazard of possible United States involvement with Soviet or Communist vessels.
Faithfully yours,