The Acting Secretary of State to the Ambassador in the United Kingdom (Douglas)
4777. Chi Emb approached Dept re tanks Commerce International Corp attempting purchase from British. Chinese aware US policy contemplates retention in UK and Europe usable military equipment now there (Deptel 4610 Dec 102) but state tanks in question earmarked scrapping if not sold them. Dept prepared inform Chinese shipment military materiel usable or not from UK and WE3 undesirable view effect publicity such transfer might have on foreign military assistance programs.
Dept however interested knowing whether tanks earmarked for scrapping or for WE programs.