893.50 Recovery/8–2748

The Chinese Embassy to the Department of State


The Chinese Air Force has been in urgent need of more aviation gasoline. The Chinese Ambassador, under instructions from his Government, invited the attention of the Secretary of State to this fact in his interview with him on August 17th. Through the good offices of the State Department and other United States Departments, export licenses for a portion of the aviation gasoline contracted for on July 12th were granted last week. However, not only is the quantity thus made available in the near future exceedingly limited, but much of this limited quantity will have to be shipped to China, and it will take time to effect it. Besides, the existing stock scattered in China amounts to only 74,000 barrels, most of which is destined for Chinese and foreign commercial use and for that of the United States armed forces in China.
It has been estimated that the requirements of the Chinese Air Force to the end of the year add up to 20,000,000 gallons of 100 octane aviation gasoline. The application for the grant of the necessary quarterly export quota is being filed with the Commerce Department, but it will be much appreciated if the State Department would be good enough to use its good offices with the Commerce Department to expedite action.
In view of the urgency of the immediate needs of the Chinese Air Force and the inadequacy of the existing available stock in China to meet them, the Chinese Government desires to borrow 10,000,000 gallons of 100 octane aviation gasoline for its use from the stock of the United States armed forces under the control of the Supreme Commander for the Allied Powers in Japan. The gasoline thus furnished will be paid for by reimbursement from the funds made available to China under the China Aid Act of 1948, Section 404 (b), or be replaced from the new orders which the Chinese Government has requested the United States Department of the Air Force to procure on behalf of the Chinese Air Force, in pursuance of the procedure set forth in the Secretary of State’s note to the Chinese Ambassador under date of July 30th, 1948.1
The Chinese Ambassador will be grateful if the Secretary of State would cause instructions to be sent to SCAP2 in Tokyo to arrange the proposed loan of the needed amount of 100 octane aviation gasoline from the stock under his control. The Chinese Government will, on its part, shortly dispatch Lieutenant-Colonel Hsuehchang Pan of the Chinese Air Force to Tokyo to discuss the details of this arrangement, which, it is earnestly hoped, will meet with the approval of the United States Government.

  1. Ante, p. 126.
  2. Supreme Commander, Allied Powers in Japan (MacArthur).