Foreign Relations of the United States, 1949, The Far East: China, Volume IX

893.6363/11–1049

Memorandum by Mr. William McAfee of the Office of Chinese Affairs

[Washington,] November 23, 1949.

Reference: Memorandum of Conversation of November 18, 1949 entitled: “Proposed Sale by the Navy of Lub Oil for vessels Sold China under PL–512”.

Mr. Sprouse discussed the proposed transaction with officers in FE. It was decided that it would be appropriate for the Department of the Navy, should it desire to do so, to assist the Chinese in the procurement of the desired oils. It was indicated, however, that shipment of the material to Taiwan should in no case be made in a United States Naval vessel and that normal commercial vessels should be employed.

Mr. McAfee informed Captain Floyd, Op.–411M, Department of the Navy, of the Department’s views on November 18. Captain Floyd indicated that shipment would be made in commercial vessels probably from a Gulf port.