793.56/7–1850

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)

top secret

Dear Mr. Rusk: Your letter of 21 June 19501 requests an indication of the views of the Department of Defense regarding action to be taken on the request of the Chinese Government to purchase 25 F–80(B) jet fighters with its own funds and a further request to purchase F–51 aircraft understood to be surplus to United States requirements.

The Secretary of Defense has recommended to the Secretary of State that, in order to increase the capacity and will of the Chinese Nationalist Forces to fight, the Chinese Nationalist Government should be authorized to make purchases, with its own funds, of any matériel under the control of the United States, including tanks and jet aircraft, provided there is no Service objection to these purchases. Delivery and shipment of such purchases should be expedited by United States assistance.

If the Department of State concurs in the above recommendation, the Department of Defense would have no objection, from an operational standpoint, to the granting of an export license to the Chinese Nationalist Government for the F–80(B) aircraft, or selling surplus U.S. aircraft to them. However, production of the F–80(B) aircraft has been discontinued, and it is expected that the entire productive capacity of this plant will be occupied with orders for more modern types to meet the requirements of the United States Air Force. The F–80(B)’s in the current USAF inventory are similarly required.

A telephone conversation with Mr. McAfee of your office, on 14 July, indicates that the Chinese requirement may be for F–84(E) aircraft instead of F–80(B). The situation regarding F–84(E) or any other later model would be the same as stated above.

The F–51 aircraft are no longer surplus to U.S. needs and, therefore, are not available for sale to the Chinese Government at this time.

The overall requirements of the Chinese Nationalist Government for military assistance are now under consideration within the Department of Defense. In the event that this study reveals a priority need for jet aircraft, the Department of Defense will consider the diversion of such aircraft from our own stocks or from production.

Sincerely yours,

J. H. Burns
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