893.50 Recovery/5–448
Memorandum of Conversation, by the Chief of the Division of Chinese Affairs (Ringwalt)
| Participants: | Dr. Shao-Hwa Tan, Chinese Minister |
| Mr. Butterworth, FE | |
| Mr. Ringwalt, CA |
Dr. Tan called at three o’clock this afternoon by appointment with Mr. Butterworth. He opened the conversation by stating that, the exchange of notes98 having taken place, his Government was now giving attention to the appropriate utilization of the credits to be made available to it under the China Aid Act. He stated that his Government was planning to spend the entire $125,000,000 for military supplies99 and that it was working out a balanced program for the procurement of such supplies. Indications were that the larger portion of this amount would be expended for the purchase of supplies for the Army, a smaller portion for the Air Force and a still smaller amount for the Navy. The problem immediately confronting his Government, said Dr. Tan, was the proper utilization of the 13.5 million-dollar portion of the $50,000,000 to be advanced by RFC.1
Dr. Tan referred to previous discussions in regard to the urgent need for 30-caliber ammunition for use in carbines. He said that according to the lists which this Department had supplied his Embassy there were about 30,000,000 rounds of small arms ammunition of various categories of which, however, only 52,000 rounds were carbine ammunition. He asked whether, in view of the urgent need for such ammunition, further search might be made with a view to uncovering more ammunition of this type for sale as surplus.
Dr. Tan also referred to the 8⅓ Group Program and reiterated his previous request that if possible aircraft for this Program be made available from Pacific sources to be replaced by similar aircraft from the Zone of the Interior. He also again asked whether fighter aircraft could be substituted for bombers under the Program and whether this Government would recognize China’s claim for a larger number of aircraft than the 135 held by the United States Air Force to be the amount still due under the Program.
Mr. Butterworth stated that the various problems with regard to surplus ammunition and the 8⅓ Group Program, mentioned by Dr. [Page 63] Tan, had already been referred to the Department of the Army and the Air Force respectively. He pointed out that, although this Department would be more than pleased if the Army could declare 30,000,000 rounds of carbine ammunition or even a larger amount as surplus, it had no authority whatsoever in connection with surplus declarations. He recalled that as far back as last December this Department had already asked the Army for a complete statement of surplus ammunition available for transfer to China and that lists of such ammunition had already been given the Chinese Embassy. With regard to the number of aircraft still due under the 8⅓ Group Program Mr. Butterworth reiterated his previous position that this was a technical matter for the concerned officers of the Chinese and the United States Air Forces to work out.