793.5 MAP/10–3150
Memorandum by the Deputy Director, Mutual Defense Assistance, Department of State (Ohly), 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 the memorandum from Mr. Bell to you, dated September 18, 1950, and entitled as above, in which approval was given to the initiation of a program in the amount of $9,752,000 for assistance to Formosa as submitted by you in a memorandum of September 16, 1950, similarly entitled. Reference is also made to the communication from Mr. Bell to you of September 15, 1950 with the [Page 548] subject, “Political and Economic Factors Indicating the Amount and Character of MDAP Aid to the Chinese Government”. The latter document sets forth certain criteria which, from the standpoint of the Department of State, should be observed in the development and execution of any programs of assistance for the Chinese Nationalist forces on Formosa.
It is our understanding that the program hereinabove referred to constituted an initial program for the purpose of assisting the Chinese Nationalist forces on Formosa, and did not purport to be a final definitive program covering all items which the Department of Defense might recommend for delivery to these forces. It is also our understanding that a survey of military requirements on Formosa was made under General MacArthur’s auspices and that the initial program, as well as any immediately following programs, would be based on the recommendations stemming from this survey which, I understand, is commonly referred to as the “Fox Survey”. In order that the Department of State may have a better appreciation of the amount and general nature of possible subsequent programs for the Chinese Nationalist forces, I would appreciate it if you could promptly furnish us with a copy of the Fox Survey, together with an indication with respect to its present status and as to the probable cost of implementing the recommendations contained therein which are likely to be accepted by the Department of Defense. This information is necessary if we are to make an intelligent application of available funds as among the several possible claimants therefor in Southeast Asia.
We have been advised by your office that the first shipments under the initial program were loaded on October 30, and were expected to reach Formosa in the third week of November. We would appreciate immediate advice as to the consignees of this equipment, the proposed method of delivery and distribution, and the end-use controls which are contemplated, and, in general, any other information bearing on the method by which this military assistance will actually be handled upon its arrival in Formosa.