893.248/2–1848
Memorandum of Conversation, by the Director of the Office of Far Eastern Affairs (Butterworth)
As the Chinese Ambassador and Mr. Tsu-yee Pei were leaving Mr. Thorp’s42 office, the former invited himself to talk with me in my office and Mr. Tsu-yee Pei came along but did not participate in the subsequent conversation.
After a number of pleasantries, Dr. Koo referred again to his request for further information as to what determination the Secretary had arrived at as regards the Chinese Government’s request for a credit of $100 million for arms purchases. I again said that as far as I knew the Secretary was still considering it and went on to point out the nature of the program presented to Congress today43 would free Chinese Government resources, which would otherwise be devoted to purchases of the products named in the bill, for use by the Chinese Government for arms or other materials.
Dr. Koo then went on to ask for the Department’s intervention in the negotiations now taking place with FLC regarding combat planes and he stressed (a) the urgency of their need and (b) the desirability of having the planes made available in the Western Pacific rather than in the United States. I agreed to look into the matter.
[Page 16]Dr. Koo also complained that having accelerated action on the Zone of the Interior 8–⅓ Group Program purchases and having signed the mass contract, the Chinese Government was still unable to take delivery of the repair depot equipment now boxed and ready for shipment in Honolulu. In this connection he emphasized that he had the money in Washington to pay for it. I also agreed to look into this matter.