893.24/4–149
The Secretary of Commerce (Sawyer) to President Truman
My Dear Mr. President: Several weeks ago you instructed that procurement and export proceed under the $125 million Military Aid Program for China. At that time one of the primary considerations against continuance of the program was the probability of shipments falling into the hands of the Chinese communist forces. I have been increasingly disturbed during recent weeks by reports that many items of military significance continue to flow from Nationalist hands to those of the Communists. In addition, there is real doubt among my advisers that the Nationalist Government currently possesses adequate munitions making facilities to consume the quantities of materials being shipped under the authorized program. For these reasons even though all the funds have already been committed, I feel you might wish to review the unshipped balance of the program which amounts to approximately $45 million.
Although only a small part of the total military aid program requires my concurrence in the exercise of export control, I am currently withholding approval on export license applications for a number of chemicals and metal products which possess military significance. In view of the possibility of these materials being diverted to the Communist forces, I shall continue to hold such items unless you direct otherwise.
Respectfully yours,