893.50 Recovery/4–149
Memorandum by the Deputy Director of the Office of Far Eastern Affairs (Allison) to the Under Secretary of State (Webb)
Secretary Sawyer’s Letter Concerning Export Control of Certain Materials Purchased by the Chinese Government Under the $125 Million Grants (Section 404(b) of the China Aid Act of 1948).
[Page 506]Following discussion in NSC concerning continuation of shipments of military supplies to China under the $125 million grants the President held an off-the-record meeting with Congressional leaders, the Vice President, and the Secretary of State on Saturday, February 5. It was the unanimous opinion of the Congressional leaders that no action should be taken which would in effect place an embargo or stoppage on continued shipments to China (Tab A).58 An NSC memorandum of February 8 set forth a directive from the President that deliveries should be continued but that no effort should be made to expedite them (Tab B).
Action taken in implementation of this directive was indicated in an FE memorandum of March 29 to the Under Secretary (Tab C),59 the final paragraph of which pointed out current developments with respect to the items on which Commerce is withholding licenses. These items include:
| Miscellaneous steel products – | 2–3,000 tons |
| Aluminum – | 150 tons |
| Copper and brass products – | 200 tons |
| Chemicals for arsenals – | 5,000 tons |
| Zinc ingots – | 200 tons |
| Miscellaneous tools and arsenal equipment |
Since the decision to continue deliveries under the $125 million grants was made by the President in consultation with Congressional leaders, any modification of this decision would necessarily require action by the President. FE is of the opinion, therefore, that deliveries of all materials purchased by the Chinese with funds from the $125 million grants should be continued. If there were new developments which required a review of the previous decision by the President, the matter would presumably be taken up again in NSC for review and subsequent reference to the President. However, FE is of the opinion that conditions in China have not appreciably changed since early February, and, in order not to weaken the hand of government leaders during current political negotiations and in order not to discourage continued resistance to Communist aggression, deliveries of the items requiring licenses should be continued in amounts commensurate with Chinese needs and consumption capacities.60
- See memorandum of February 7 by Brigadier General Carter, p. 485.↩
- Not printed; it was the basis for the report to the National Security Council on April 4, p. 507.↩
- Paul H. Nitze, Deputy to the Assistant Secretary of State for Economic Affairs (Thorp), in a memorandum of April 25 stated that he had seen Mr. Blaisdell of the Department of Commerce and persuaded him to drop his suggestion and to proceed with issuance of export licenses.↩