791.5622/8–1452

Memorandum by the Director of the Office of Military Assistance in the Department of Defense (Olmsted) to the Secretary of State’s Special Assistant for Mutual Security Affairs (Martin)

confidential

Subject:

  • Reimbursable Military Assistance Under Section 408(e) of the MDAA, as Amended—Case No. OMA India 7
1.
Reference is made to your memorandum, subject as above, dated [Page 1662] 13 May 1952, which forwarded note from the Indian Embassy requesting procurement of fighter aircraft for the Indian Government.
2.
In accordance with oral requests made by your office, the estimated pricing and availability study made by the Department of the Air Force on the 54 C–119 aircraft requested under this case is forwarded for information and study.

a. Estimated Availability

(1) 1954
Jun Jul Aug Sep Oct Nov Dec
1 2 0 3 1 0 0
(2) 1955–1956
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan
1 6 5 5 2/2 6 5 4 3 3 2 2 1

Note: The delivery of the first group of 26 aircraft requested ends with the first two in May 1955. The second group of 28 aircraft will be delivered from May 1955 through January 1956.

b. Estimated Cost

(1) For the 26 C–119G aircraft estimated to be delivered in 1954 and 1955, the estimated prices are based on a 1 September 1952 go-ahead.

Per Unit (Installation) $571,501
Total for 26 Aircraft 14,859,026
Per Unit, Spares 329,353
Total Spares 8,563,178
Unit Program Cost 900,854
Total Program Cost (26 Aircraft) 23,422,204

(2) For the 28 C–119G aircraft estimated to be delivered in 1955 and 1956, the estimated prices are based on a 1 February 1953 go-ahead.

Per Unit (Installation) $560,075
Total for 28 Aircraft 15,682,100
Per Unit, Spares 326,405
Total Spares 9,139,340
Unit Program Cost 886,480
Total Program Cost 24,821,440

(3) The grand total program estimated cost for 54 C–119G aircraft and support is $48,243,644.

(4) An additional month should be added to the delivery schedule indicated above for each month’s delay up to six months in the go-ahead dates.

3.
This information covers partial pricing and availability on the aircraft requested by the Indian Government. In view of the fact that there are no F–84E or F–80B aircraft available for release to the Indian Government, the Department of the Air Force is considering the substitution of the F–84F, F–84G or F–86 aircraft. Information on F–9F aircraft is being held in abeyance pending a resolution of the entire fighter portion of the Indian request.
4.
It is expected that further information covering the remaining aircraft on this request will be forthcoming approximately 31 August 1952.
[For the Director of the Office of Military Assistance:]
H. H. Fischer