793.5 MAP/9–1850
Memorandum by the Acting Deputy Director, Mutual Defense Assistance, Department of State (Bell), to the Director of the Office of Military Assistance, Department of Defense (Lemnitzer)
Subject: Military Assistance to the Chinese Nationalist Forces on Formosa.
Reference is made to your memorandum of September 16, 1950,1 same subject, recommending an initial program of U.S. grant military assistance to the Chinese Nationalist Government at a total estimated cost of $9,752,000.
The Department of State is prepared to accept the supply priority recommended by the Department of Defense for this initial list of items to be furnished to the Chinese Nationalist Government, such priority being immediately above that of grant military assistance to Indochina. It should be understood that this priority arises from the mission now assigned to the U.S. Seventh Fleet; if that mission is changed the Department of State would wish to review the priority as between Formosa and Indochina. The Department of State notes with satisfaction that the program will be arranged in such a way as to cause minimum dislocation of supply to the European NATO countries.
The Department of State approves the initial program as specified in enclosure A2 of your memorandum in the amount of $9,752,000, on the condition that this program conforms with the principles set forth in my memorandum dated September 15, 1950, entitled “Political and Economic Factors Indicating the Amount and Character of MDAP Aid to the Chinese Government”. Necessary funds for this program were allocated to the Department of Defense by the President on August 25, 1950.3