Office of the Historian

893.50 Recovery/11–1849

Memorandum by the Assistant Secretary of State for Far Eastern Affairs (Butterworth) to the Director of the Office of Chinese Affairs (Sprouse)

[Washington,] November 18, 1949.

I understand from Mr. Perkins46 that Mr. Bevin47 indicated to Mr. Acheson in the course of the conversations in Paris that his Government fears that war materials on Formosa would ultimately pass into the hands of the Chinese Communists and would possibly be used against Hong Kong or elsewhere. Mr. Bevin inquired whether we were continuing to ship arms and other war materials to Formosa. The Secretary said that he would look into the matter and let the British Government know what the position was.

I explained to Mr. Perkins about the $125 million and agreed to give Mr. Graves48 a report on its status. However, I also indicated that the $75 million was involved and that it was undesirable at this time for the Secretary to seek from the President a government determination; that this in effect would eventuate from the NSC paper on Asia which was now at the consultant level.

Would you please prepare for me a memorandum which I can hand to Graves on the $125 million?

  1. Troy L. Perkins, officer in charge of Political Affairs in the Office of Chinese Affairs.↩
  2. Ernest Bevin, British Secretary of State for Foreign Affairs.↩
  3. Hubert A. Graves, Counselor of the British Embassy.↩