The Secretary of State to the Secretary of Defense (Forrestal)

Dear Mr. Secretary: You will recall that during our conference on June 7, at which Secretary Royall was present, there was handed to you a copy of a note, dated June 2, 1948 from the Chinese Ambassador in regard to Chinese planned expenditures of the $125,000,000 grants authorized under Section 404(b) of the China Aid Act of 1948. The Chinese Ambassador enclosed with this note lists of items of military supplies and equipment to be procured in the United States for the Chinese Army, Air Force and Navy from these funds. He also listed certain officers of the Chinese armed forces who will assist the Chinese Embassy at Washington in the procurement of military supplies and requested that he be informed of the agency or agencies of the United States Government which these officers may approach and to which they may communicate the necessary information with a view to clarifying the technical requirements of China’s armed forces.

It is the view of this Department that the request of the Chinese Ambassador should be granted. I am, therefore, asking the Foreign Liquidation Commissioner to designate certain officers whom the Chinese military representatives may approach in this connection. If you concur in such action, I should appreciate your designating the appropriate officers of the Departments of the Army, Navy and Air Force whom the Chinese representatives may approach in this regard and informing me accordingly in order that I may communicate their names to the Chinese Ambassador.

Faithfully yours,

G. C. Marshall