893.24/4–449

Memorandum of Conversation, by the Chief of the Division of Chinese Affairs (Sprouse)

Participants: Mr. Paul Hubert, Attaché, the Belgian Embassy
Mr. Philip D. Sprouse, Chief, Chinese Affairs
Mr. William McAfee, Chinese Affairs

Mr. Hubert called at my office this morning at his own request to discuss this Government’s policy with respect to shipment of arms to China. Mr. Hubert indicated that the Chinese had approached certain Belgian munitions concerns with the request that arms be manufactured for the Chinese Government, and he asked if the United States permitted the shipment of arms to China from sources in this country. I indicated to him that shipments of military matériel were going forward and, with respect to the $125 million grants, noted that though the funds allocated had been completely obligated as of April 1, shipments of matériel procured by the Chinese with such funds, either through agencies of this Government or through private commercial channels, would be continuing and that the requisite export licenses were being granted as applications were submitted.

Mr. McAfee suggested that Mr. Hubert might find it advisable to discuss this matter with the appropriate persons in the Office of European Affairs who on previous occasion had indicated concern over the export from the United Kingdom or Western Europe of arms and ammunitions which might be of use in any future Western Union rearmament program. Mr. McAfee stated that officers in Eur have expressed the opinion that there might be unfavorable repercussions either in the press or in Congress if it were learned that nations in that area were exporting arms while this Government was preparing programs of military assistance for them.