893.24/3–2448

The Chinese Embassy to the Department of State

Memorandum

(1)
On January 28, 1948, the Chinese Ambassador, pursuant to instructions of his Government, had the honor to request the Secretary [Page 42] of State to give favorable consideration to a proposal of military aid for China.
(2)
The military situation in China has since assumed greater proportions and is becoming more urgent, and the needs of the Chinese National Army have increased considerably. It is the earnest desire of the Chinese Government that the United States Government would extend to China a grant or credit of US$150,000,000 for the procurement of ammunition and military equipment preferably from surplus stocks of the United States. If the United States Government would agree to extend such aid, the Chinese Government should like to propose that this grant or credit will be used for a period of twelve months beginning from April 1, 1948, mainly for the following purposes:
a.
To procure adequate arms, ammunition and other equipment for the Thirty-nine Divisions originally equipped or to be equipped with American arms, including accessories and items of equipment for communication and signal;
b.
To procure aeroplanes, necessary equipment and accessories, together with ammunition, bombs and spare parts to maintain the first-line strength of the 8⅓ Group Program sufficient for a period of one year; and
c.
To pay for packing, inland and ocean transportation, insurance and other expenses incidental thereto.

Detailed programs of procurement will be furnished in due course for the conclusion of an arrangement for the proposed aid fund.