793.56/5–650

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

secret

Dear Mr. Secretary: Reference is made to my letter of April 14, 1950 and to paragraph. (a) of your reply dated May 6, 1950, regarding the continuation of assistance to the Government of China under Section 404(b), Public Law 472. It is noted that you have advised the appropriate agencies of the Department of Defense that assistance under this legislation may be continued “on those orders currently in the process of procurement or delivery as of 14 April” (exceptions being made in the case of jet aircraft and medium and heavy tanks).

In responding to your request for recommendations regarding further military assistance to China, it was the understanding of the Department of State that all funds on deposit with the Departments of the Army, Navy, and Air Force under the $125 million grants had been definitely and finally committed by Chinese Government requisitions. The Department of State recommended in its letter of April 14 that the material on these requisitions be procured and shipped in order to exhaust the balances on deposit under the $125 million grants. [Page 352] It was not the Department’s view, however, that a deadline should be established for the submission of requisitions by the Chinese Government under the $125 million grants, with the Departments of the Army, Navy, and Air Force refusing to honor new Chinese Government requests.

It is the opinion of the Department of State that assistance by the Departments of the Army, Navy, and Air Force under section 404(b) of Public Law 472 should be continued until all funds allocated to those Departments from the $125 million grants have been exhausted, including not only orders under procurement or delivery as of April 14 but also any subsequent requisitions which the Chinese may submit while these funds remain available.1

Sincerely yours,

Dean Acheson
  1. Under date of June 8, Mr. Johnson sent the following reply to Secretary of State Acheson:

    “In furtherance to your memorandum dated 1 June 1950 on the subject of military assistance to the Chinese Nationalist Government, under Public Law 472, I have advised the appropriate agencies within the Department of Defense that the provision of military assistance to the Chinese should be in accordance with the following:

    ‘Assistance to the Chinese Nationalist Government, under Public Law 472, should be continued, except for jet aircraft and medium and heavy tanks, until all funds allocated to the Department of Defense from the $125 million grants have been exhausted, including not only orders under procurement or delivery as of 14 April, but also any subsequent requisitions which the Chinese may submit while these funds remain available.’”(793.56/6–850)