793.56/7–1950

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

top secret

Dear Mr. Secretary: In my letter dated 6 May, I stated that I would reserve comment on your letters of 7 March and 14 April, concerning U.S. policy in administering Public Law 512, 79th Congress, Public Law 472, 80th Congress, and Executive Order 9843, in connection with the transfer of equipment to the Chinese Nationalist Government, pending a review of the U.S. Military position with regard to Formosa.

The Department of Defense has reviewed the above aspects of our position with respect to Formosa and I recommend 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, either in the United States or elsewhere, provided there is no Service objection to these purchases. Delivery and shipment of such purchases should be expedited by United States assistance.

If you concur in the above views, I request you advise me, as a matter of urgency, so that appropriate measures can be taken by the Defense agencies to implement this policy.1

I will advise you of Department of Defense policies and recommendations concerning grant aid to the Chinese Nationalist Government at a later date.

Sincerely yours,

Louis Johnson
  1. Mr. Acheson expressed his concurrence in a letter to Secretary Johnson dated July 24, not printed (793.56/7–1950).