893.24/10–2148

Memorandum by the Chief of the Division of Chinese Affairs (Sprouse) to the Director of the Office of Far Eastern Affairs (Butterworth)

Mr. McAfee has been in contact with Major Naylor, Logistics, Department of the Army, inquiring about delivery schedules being drawn up by the Army. Major Naylor indicated that on October 20 the Army had a 2-hour telecom conference with SCAP27 SCAP is prepared to deliver about 10% of the total equipment to China within 25 days. However, in this case SCAP would expect to be reimbursed by the Chinese for shipping costs, etc., and will inform the Army today of estimated costs for such. Major Naylor states that the Chinese have objected to paying these costs since they feel the Navy agreed to ship the goods free. Major Naylor will keep McAfee informed of developments.

Major Naylor indicated that the Army is pushing to the greatest possible degree the assembling of equipment in this country and is not suspending any activities even though SCAP may eventually provide part of the equipment. The Army expects to have all the materiel on the West Coast ready for shipment by November 15 and when the situation clarifies the Army and the Navy may be able to agree on shipment dates which will result in the delivery of some of this equipment to China prior to December 1.

In view of the above, the Secretary’s “statement” to the Foreign Minister that a sizeable portion of the goods would be delivered to China by December 1 will likely prove to have been correct. The Department of the Army is in touch with the Chinese on these developments and it does not, therefore, appear necessary for us to inform the Secretary or the Chinese until something more definite is known.

  1. Supreme Commander, Allied Powers in Japan (MacArthur).