794A.5/5–2950
Memorandum by the Special Assistant to the Secretary of Defense for Foreign Military Affairs and Assistance ( Burns ) to the Assistant Secretary of State for Far Eastern Affairs ( Rusk )
Subject: Notes on State–Defense Conference Held 25 May 1950
In furtherance to our discussion at the State–Defense meeting held in General Lemnitzer’s1 office on 25 May, I am forwarding my understanding of the points which were agreed upon in connection with. (1) policies relating to the provision of military assistance to the Nationalist Chinese Government on Formosa, and (2) organization for the provision of military assistance to Southeast Asia:
1. Provision of military assistance to the Nationalist Chinese Government on Formosa—every step should be taken within existing United States policy to provide assistance to the Chinese Nationalist Government on Formosa. Accordingly:
- a.
- You agreed to take the necessary action within the Department of State to determine whether or not the provisions of the Secretary of State’s letters dated 7 March and 14 April, can be broadened.
- b.
- You agreed to take steps within the Department of State to authorize and facilitate the granting of export licenses to the Chinese Nationalist Government on Formosa for military equipment purchased in the United States.
- c.
- Upon receipt of any revised interpretations of policy, the Department of Defense will expedite the supply of that equipment which can be provided under the provisions of Public Law 472 ($125 million program).
- d.
- The Department of Defense will make every attempt to insure that equipment furnished the Chinese Nationalist Government are items urgently required in connection with the defense of Formosa.
- e.
- There should be no change in the application of existing pricing policies applied toward the $125 million program.
- f.
- The Department of Defense in reviewing the situation in Formosa will indicate at an early date its views with regard to the desirability of recommending changes in existing U.S. policy and with regard to contents of Mr. Acheson’s letters of 7 March and 14 April.
- g.
- It was recognized by both sides that covert action in support of resistance on Formosa, while of limited possibilities, is authorized by existing U.S. policies and that augmentation and intensification of the covert effort is desirable. You agreed to request Presidential release of such 303 funds2 as might be required for authorized projects.
[Here follows numbered paragraph 2 dealing with provision of military assistance to Southeast Asia; for documentation relating to Indochina, see pages 690 ff.]
- Maj. Gen. Lyman Lemnitzer, Director of the Office of Military Assistance, Department of Defense.↩
- Reference is to Section 303 of the Mutual Defense Assistance Act of October 6, 1949 (P.L. 329; 81st Congress; 63 Stat. 714), which provided $75,000,000 as an emergency fund to be expended by the President to accomplish in the general area of China the purposes set forth in the Mutual Defense Assistance Act.↩