494A.118/3–750

The Secretary of State to the Secretary of Defense (Johnson)

secret

My Dear Mr. Secretary: Chinese Government representatives in Washington have applied to the Department for export licenses for the shipment of 25 M–4 Sherman tanks and of 25 F–80 jet fighter aircraft to Formosa. It is understood that the tanks are being purchased from stocks of the Department of the Army and paid for from the $125 million grants authorized under Section 404(b) of the China Aid Act of 1948. The aircraft would be paid for by the Chinese Government from its own funds and would be manufactured by the Lockheed Aircraft Corporation for delivery by the end of 1950.

In this connection, the British Ambassador expressed to me on December 8, 1949 the serious concern of his Government over the continued shipment of military matériel from the United States to Formosa, particularly the shipment of medium and heavy tanks and aircraft. It was the considered opinion of the British Government that this equipment would sooner or later fall into the hands of the Chinese Communists and be available for use against Hong Kong. The British Ambassador was informed that the views of his Government would be taken into consideration with respect to shipments from the United States of this type of military matériel.1

It is not believed that military matériel of this nature should be furnished the Chinese Government, in view of the possibility that such equipment might fall into the hands of the Chinese Communists through defection or capture and thus be available for use by the Chinese Communists against Hong Kong or in the general area of China. The Department is, therefore, not issuing export licenses for the shipment of this matériel to Formosa and it would be appreciated [Page 317] if the Department of Defense would take steps to prevent the transfer of such items to the Chinese Government from its stocks.

This action is without prejudice to the continued shipment of military matériel of other types and to the issuance of export licenses covering such shipments, which will be dealt with in the reply which I expect to make in the near future to the questions raised in your letter of February 14, 1950.2

Sincerely yours,

Dean Acheson
  1. For related documentation, see Foreign Relations, 1949, vol. ix, pp. 589 ff.
  2. Not printed, but see Mr. Acheson’s letter to Mr. Johnson, April 14, p. 325.