893.24/6–948
Memorandum by the Director of the Office of Far Eastern Affairs (Butterworth) to the Secretary of State
On December 22, 1947 the Chinese Government purchased 150 C–46’s from the War Assets Administration. As of June 7, 36 of these had been flown to Shanghai and the balance were arriving there at the rate of 10 per week. If present schedules are maintained all the planes will have been delivered by the end of August.
In late April CinCFE declared 13 C–46’s surplus and these were sold to the Chinese Government at a cost of $22,500 each under a contract concluded on May 12. In view of the urgent need of the Chinese Government for these planes and in view of the fact that they are transport and not combat planes, arrangements have been effected whereby United States flight personnel are now delivering them to Shanghai. The Department agreed to the delivery of these planes [Page 67] at Shanghai by U. S. personnel on the basis that not more than 3 would be delivered at a time and that there should be no publicity in regard to such action. It was stipulated that U. S. markings would be obliterated prior to the transfer of these planes to the Chinese.