Reference is made to your memorandum of November 18, 1949 requesting
information which could be transmitted to Mr. Graves concerning the present
status of the $125 Million Grants to China. Mr. Yost (FE) obtained from U.S.
Government agencies a report on the status of materials yet to be
transferred by those agencies under the Grants. In order to check on
shipments of military materiel purchased by the Chinese Government through
commercial sources CA requested the Munitions Division to provide data on
approved but as yet unused export licenses covering such shipments. The data
provided by the Munitions Division includes shipments of materiel procured
commercially under the $125 million program. A consolidated picture of
significant items which remain to be shipped, derived from the reports of
Mr. Yost and the Munitions Division, is provided in the attached memorandum
which may be handed to Mr. Graves.
[Annex]
Memorandum Prepared by the Office of Chinese
Affairs
A list of military materiel procured or being procured for the Chinese
Govenment by agencies of the U.S. Government under the $125 Million
Grants which has not yet been shipped is as follows:
[Page 595]
estimated as of november 1, 1949
|
Quantity
|
Value
|
| Light tanks |
100 ea. |
|
| Scout Cars, M3A1 |
100 ea. |
|
| Motor carriages, 75 mm. Howitzer |
125 ea. |
|
| Rifles, Auto., Brng., M1918A2
(BAR) |
1,000 ea. |
|
| Mounts, combination, M23A1 for 37 mm. Gun
(used on light armored car) |
100 ea. |
|
| Shells for 4.2″ Chemical Mortar |
25,000 ea. |
|
| Tires (various) |
7,000 ea. |
|
| Automotive spare parts |
|
$1,680,000 |
| Weapons spare parts |
|
85,000 |
| Tools and tool sets |
|
240,000 |
| Raw materials (inclusive of gun
powder) |
|
1,850,000 |
| Antimony sulphide (for vulcanizing
rubber) |
5,000 lbs. |
|
| Gyro stabilizers |
100 ea. |
|
| Dry batteries |
40,000 ea. |
|
| Radio sets |
600 ea. |
|
| Radio spare parts |
|
6,500 |
| Electrical equipment (including one 5 KW
Diesel driven generators per set) |
12 sets |
|
| Medical supplies and equipment |
|
995,000 |
| Vacuum tubes |
|
47,000 |
| Naval spare parts (hull and engineering
spares) |
|
265,000 |
| Aircraft spare parts |
|
305,000 |
| Plastic film |
|
80,000 |
The foregoing is a listing of significant unshipped items. Miscellaneous
other items requested by the Chinese Government remain to be procured
and/or shipped. A rough estimate of the dollar value of all unshipped
items, by federal agencies concerned, is as follows:
| Army |
$6,793,500 |
| Navy |
310,000 |
| Air Force |
390,700 |
| Treasury—Bureau of Federal
Supply |
500,000 |
|
$7,994,200 |
The following list covers military materiel being procured by the Chinese
through commercial sources in this country on which as yet unused export
licenses have been issued. Some of the items listed are being procured
with funds from the $125 Million Grants, but the exact quantity of such
items is not known.
[Page 596]
A. Items other than Aircraft and
Aircraft Parts
1. Items aproved for export
|
Quantity
|
Value
|
| Drop steel forgings |
|
$4,550 |
| Tank spares |
400 tons |
60,000 |
| Motor carriages tracks |
40 sets |
19,000 |
| Motor carriages (in transit from
U.K.) |
30 ea. |
$75,000 |
| Sherman tanks (in transit from
U.K.) |
85 ea. |
300,000 |
| Powder and ammunition |
|
205,475 |
| Propellent flakes and powder |
|
666,520 |
| Cartridges (in transit from
Canada) |
81,000,000 rnds |
4,900,000 |
| Ammunition,* .30 caliber |
|
21,281 |
| Shot firing cord |
|
4,570 |
| Motor carriages*
|
42 ea. |
100,000 |
| Light tanks and dozers |
9 ea. |
72,000 |
| Mauser rifles & ammunition, 7.9mm
(in transit—Belgium) |
|
4,215,000 |
| Mauser rifles & machine guns,
7.9mm (in transit—Belgium) |
|
559,100 |
| Telescopes and periscopes |
|
2,300 |
| Gun-sights |
|
1,000 |
| Gun-sight noise filters |
|
45 |
| Smokeless powder |
|
3,355 |
| Rocket igniters |
|
5,500 |
| Tanks spare parts*
|
200 tons |
30,000 |
2. Items not yet approved for export but requested by the Chinese
Government.
| Used light armored cars*
|
200 ea. |
$50,000 |
| Used tanks with flame throwers*
|
4 ea. |
8,000 |
| Tracked landing vehicles*
|
156 ea. |
75,000 |
| Staghound armored cars (in transit
from U.K.) |
200 ea. |
200,000 |
| Rifles and machine guns (in transit
from Belgium) |
|
84,000 |
| Machine guns (in transit from
Belguim) |
3,000 ea. |
1,395,000 |
B. Aircraft and Aircraft Parts
There are still valid export licenses for approximately $6,800,000 worth
of aircraft and aircraft parts purchased commercially by the Chinese
Government. As this total includes some $2,700,000 for 180 AT6 aircraft
which have been reported by the Chinese to have been shipped on a
continuing basis throughout this year, it is believed that
[Page 597]
a good portion of the
$6,800,000 total has already been shipped, though customs reports on
such shipments have not yet reached the Department.
