893.24/6–248

The Chinese Ambassador (Koo) to the Secretary of State

The Chinese Ambassador presents his compliments to the Secretary of State and, referring to the conversation he had with the Acting Secretary of State on April 9, 1948,32 inquiring as to the procedure to be followed in regard to the use of the “sum not exceeding $125,000,000 for additional aid to China through grants” as stipulated in the China Aid Act of 1948, has the honor to transmit herewith two Lists of Items of Military Supplies and Equipment: one for the Chinese Army and Navy, the other for Chinese Air Force, to be procured immediately in the United States with the funds provided for under Section 404 (b) of the said Act. These Lists are summary statements abridged from two comprehensive procurement programs, which will be submitted in due course.

The said Lists cover the immediate requirements of the Army and Navy, and the Air Force, to which the Chinese Government proposes to allot 75.84 and 22.56 per cent, respectively of the above-mentioned sum. The list of articles needed by the Armored Force, which represent [Page 81]1.6 per cent. of the total, will be transmitted to the Department of State presently.

The data conveyed in the List for the Army and Navy are brought to Washington by Major General Yang Chi-tseng, Chief of the Ordnance Department, accompanied by Brigadier General Chien Li, Deputy Chief of Military Transportation Department; Colonel Koo Hou-ying, Deputy Division Head of the Signal Department; Lieutenant Colonel Shao-chi Tong, Branch Head of the Field Service Division of the Ordnance Department; and Commander H. L. Huang, Assistant Executive Officer of the Navy Command Forces. It is to be added that the Chinese Government has also appointed Lieutenant General Chu Shih-ming to come to Washington to assist the Embassy in connection with the procurement of military supplies. He, conjointly with Lieutenant General Yang and his group, will supply technical information and handle matters pertaining to the procurement of the necessary ammunition and items of equipment for the Chinese Army and Navy.

The List for the Air Force is furnished by the Chinese Air Force through Lieutenant General P. T. Mow, Deputy Commanding General of the Chinese Air Force and concurrently Chief of the Office in the United States of the Chinese Air Force, who will undertake to perform the like functions in so far as the needs of the Chinese Air Force are concerned.

The said officers stand ready to supply any information or details of a technical nature as regards the requirements in their respective fields.

The Ambassador will be obliged if the Secretary would be good enough to indicate the agency or agencies of the United States Government which the above-mentioned representatives of the Chinese Government may contact and to which they may supply the necessary information with a view to clarifying the technical requirements of China’s armed services.

[Page 82]
[Enclosure 1]

Summary of Items of Military Supplies and Equipment for the Chinese Army and Navy To Be Immediately Procured With Funds Provided for Under Section 404(b) of the China Aid Act of 194833

distribution of $125,000,000 u. s. a. special aid to china

Combined Services Forces—Army Part
Ordnance $ 39,070,000
Transportation 24,225,000
Signal 10,480,000
Medical 7,000,000
Engineer 2, 625, 000
Quartermaster 1,750,000
Special Service 150,000
Air Force 28,200,000
Navy 9,500,000
Armored Force   2,000,000
Total $125,000,000

[Here follow detailed statistics in breakdown of the foregoing summary.]

[Enclosure 2]

List of Items of Military Supplies and Equipment of the Chinese Air Force To Be Procured Immediately From the Funds Provided for Under Section 404(b) of China Aid Acts of 1948

foreword

1.
This summary represents the first priority requirements of the Chinese Air Force for aircraft, spare parts, supplies and accessories, equipment, ammunition and explosives for the year of 1948. However, POL33a requirements, which are supposed to be dealt with under separate funds, are not included. A detailed list on which this summary is based is also available.
2.
The total value of the requirements, based on original procurement costs during the Second World War, of various items contained herein, is estimated to be about $123,974,145.58.
3.
It is contemplated that all items could be obtained from surplus stock at the average price of 17½% of the original procurement cost. Therefore, the actual cost of all items herein listed will arrive at an approximate amount of $21,500,000.
4.
Any items, or part of that which might have been already secured from the existing two Master Agreements between the Chinese Government and the Office of the Foreign Liquidation Commission, signed on January 30, 1948, and March 16, 1948, respectively, will be deleted accordingly when the actual requisition takes place. Therefore, the estimated amount in the previous paragraph could be considerably reduced, and with the money thus reduced plus the balance of $6,700,000, from the tentative allotment appropriated for the Chinese Air Force from “China Aid”, $28,200,000 will be used as funds of PH & T for the purchased property.
5.
In case no surplus stock could be made available, then the Chinese Air Force will place orders from the current market or manufacturer, in order to meet its most urgent requirements. It will stop such practice when the remaining fund from the original allotment, $28,200,000, is barely enough to cover the PH & T for the property already purchased. It will continue the procurement only when a new allotment is available.

summary of estimated total procurement cost of the 1st priority for chinese air force requirements in the year 1948

Item Description Procurement Cost
1. Combat Aircraft $ 71,189,300.00
2. Training Aircraft 12,517,500.00
3. Bombs, Ammunition and Aircraft Armament Supplies 15,701,024.00
4. Air Corps’ Supplies 19,340,341.94
5. Signal Supplies 990,077.74
6. Weather Supplies 830,402.00
7. Vehicles Supplies 1,818,808.90
8. Medical Supplies 161,691.00
9. Maintenance Matériel for Aircraft 1,425,000.00
Total $123,974,145.58

[Here follow detailed statistics in breakdown of the foregoing summary.]

  1. Post, p. 490.
  2. The following note appeared on the original:

    “This summary is intended solely to give a general idea of the material desired. Full information with details is contained in the studies on which this summary is based.”

  3. Petroleum, oil, and lubricants.