893.24/1–2348

The Secretary of the Army (Royall) to the Secretary of State

Dear Mr. Secretary:17 It is noted your 31 December 1947 letter18 attaching a memorandum from the Chinese Embassy includes three [Page 5] detailed lists of supplies and equipment urgently needed by the Chinese Government. These requirements have been considered in the light of your instructions that all statements with respect to availability are predicated on the material being surplus to the needs of the Department of the Army. Since the Chinese memorandum extracts items from the detailed lists of equipment, this matter can be most expeditiously disposed of by confining my reply to the requirements of the memorandum and not indicating the supply position by individual item. However, the supply position indicated on this basis will apply equally well to the detailed lists.

Currently the Departments of the Army and Air Force are declaring surplus for China approximately 6,500 tons of excess ammunition located in the Marianas. These declarations include some of the items enumerated in the attached list but not in the quantities desired. An additional quantity of 13,000 tons of bombs of all types are available in the Pacific. The propriety of furnishing the Chinese Government bombs larger than 100 pound is questionable. The tonnage of 100 pound bombs is approximately 600 tons. If it is your desire to supply the Chinese Air Force with bombs larger than 100 pound, this indication would be appreciated, otherwise declarations will be limited to only the 100 pound bombs. When the declarations are completed, in line with your directives, and the Office of the Foreign Liquidation Commissioner has made the transfer to China, no other Pacific Army stocks will be available for transfer to China. All surplus ammunition existing in the Zone of Interior has been committed to other programs.

The enumerated vehicles, tires, and tool replacement items are not available as surplus either in the Pacific or the Zone of Interior. All excess items of this type in the Pacific were disposed of to the Chinese Government under the 30 August 1946 Bulk Sale to China.19 As you will recall, this contract covered all items in China and seventeen Pacific Islands surplus at that time or subsequently declared.

The aircraft items of engine assemblies, tires, and tubes are being fulfilled to the extent available from surpluses in the Pacific and the Zone of Interior for application against the requirements of the 8⅓ Group Program. Those items declared in the Pacific are covered by the open-end surplus sales contract dated 6 November 1947. The total valuation of this contract is unknown as declarations are uncompleted to date. Approximately $26,000,000 worth of Air Force supplies have already been declared to the Foreign Liquidation Commissioner, Washington, D. C. In addition, the Department of the Air Force [Page 6] has 135 aircraft available for transfer. Application of these aircraft against total 8⅓ Group requirement of 1,071 would complete this phase of the program as 936 were transferred prior to August 1946. It is to be noted 37 of the aircraft are Medium Bombers. It appears the transfer of this type equipment would only further complicate the Chinese supply problem.

The list of communications equipment and accessories is greatly in excess of known Army surpluses. Some of the requirements such as wire, radio tubes, etc., can be met, but in any event, the amount which could be supplied is small since the same type of equipment is being used in support of the Greek and Turkish Aid Programs.20

In summing up the supply situation with respect to China, it can be stated the Department of the Army is now making maximum surplus declarations for approved programs. The introduction of a greatly diversified list of military equipment for study at this time can only delay the present transfer of surpluses to China. Surplus equipment not within presently approved Chinese programs but included in the list submitted would be so small as to be insignificant. The most desirable means of meeting future Chinese requirements of this type would be by legislative authority similar to Public Law 75 of the 80th Congress.21 Under this authority items not found surplus may be procured.

Sincerely yours,

Kenneth C. Royall
  1. George C. Marshall was Secretary of State at this time in succession to James F. Byrnes who had served from July 3, 1945, until January 21, 1947.
  2. Foreign Relations, 1947, vol. vii, p. 938.
  3. Signed at Shanghai; Department of State, Report to Congress on foreign Surplus Disposal, October 1946, p. 40.
  4. For report to Congress on assistance to Greece and Turkey for period of three months ending March 31, 1948, see Department of State publication No. 3149.
  5. Approved May 22, 1947; 61 Stat. 103.