893.248/5–2448
The Secretary of State to the Secretary of Defense (Forrestal)
Dear Mr. Secretary: The receipt is acknowledged of your letter of May 24, 1948 with regard to the request of the Chinese Government for military equipment for the Chinese Air Force.
The Under Secretary of State subsequent to June 20, 1947 approved for Departmental guidance a statement of policy with respect to the relative priorities for the receipt of U. S. military supplies. This decision was embodied in Policy Decision no. 11 of the Policy Committee on Arms and Armaments, of August 20, 1947,8 copies of which were transmitted by the Deputy Chairman of the Committee to the Army and Air Force members of the SANAC9 subcommittee on rearmament. By this decision three priority groups were established, though no attempt was made to establish a relative priority among the countries within any respective group. Group I comprised Greece and Turkey; Group II comprised Italy, Iran and China (8⅓ Group Program only—including civilian end-use items, transport planes and spare parts only for all equipment transferred to China under this Program); Group III comprised Canada, the Republic of the Philippines, and the American Republics.
It is understood that a new study is now being made by the concerned Departments to determine the priority of various countries for the receipt of military aid. Pending the outcome of this study, it is the opinion of the Department that the furnishing of all types of equipment for the 8⅓ Group Program should carry the priority indicated in the categories enumerated above and that any project sponsored by the Government to assist the National Government of China in maintaining an air force commensurate with her other armed forces and suitable to her present needs should be considered as maintaining a similar priority.
This Department has been informed that in addition to the 95 fighter aircraft in this country referred to in your letter under [Page 68] acknowledgment, arrangements are now being completed for the transfer to China of 166 fighter aircraft from Pacific sources. It is understood that these aircraft will be turned over to the Chinese Government at Okinawa in combat operational condition.
Faithfully yours,