Foreign Relations of the United States, 1952–1954, China and Japan, Volume XIV, Part 1

793.5 MSP/11–2354: Telegram

No. 405
The Ambassador in the Republic of China (Rankin) to the Department of State

secret

Taipei , November 23, 1954—2 p.m.

355. Department’s 297.¹ On October 27, I received from Foreign Minister three copies “Hsieh Plan” dated September 19² asking for additional military aid. He said others being furnished Department through Chinese Embassy. I gave copies to FOA and MAAG for study.

Initial MAAG comment submitted to Department Army, CNO CINCPAC by telegram MG–9953 of October 30.³ Further comment from Taipei postponed following word from Foreign Ministry that plan being revised for submission near future.

Not certain whether Department has original September 19 plan or revised plan which latter not yet received by United States agencies Taipei. Total mentioned reference telegram is $106,225,000 while September 19 figure was $104,280,000. Endeavoring obtain latest revisions and believe comment beyond that expressed in MG–9953 should be postponed until these received.

Embassy, FOA and MAAG agree any plans for utilization manpower should give priority to:

(1) Filling existing approved units to full strength;

(2) Replacing ineffectives (Embassy telegram 340)⁴ and that resources and funds, Chinese or American, which might remain or be made available should be applied to reserve program.

In line with above objectives, Chinese have prepared plan to bring all active army units (24 divisions) to full strength by April 1955. A separate plan has been presented to resettle 16,000 non-hospitalized ineffectives (over 45 years of age) during FY 1955. Summary of projects this purpose have been submitted to FOA.

To date, no information available here re second memorandum on naval vessels mentioned Department telegram 297. However, MAAG tentatively supports augmentation vessels by 6 LSUs, 6 LSTs and 2 DDs in addition replacement for DE Taiping recently lost.⁵

Rankin

1. Document 395.
2. Not printed.
3. Not printed.
4. See footnote 2, Document 395.
5. A memorandum of Jan. 7, 1955, from FOA Director Harold E. Stassen to Secretary Dulles informed him that the President, in accordance with recommendations by the Departments of State and Defense and the Foreign Operations Administration, had approved on Jan. 6 the loan of a destroyer to the Republic of China as a replacement for the destroyer escort Taiping. (793.5621/1–755)