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DECLASSIFIED E.O. 11652, Sec. 3(E) amd 5(D) or (E) Dept. of State letter, Aug. 10, 1972 TOP CHORET BYNLTH NARS Date 6-24-75 SUGGESTED ORAL STATEMENT TO DR. SOONG CONCERNING ASSISTANCE TO CHINA The United States is prepared to assist China in the development of armed forces of moderate size for the maintenance of internal peace and security and the assumption of adequate control over the liberated areas of China, including Manchuria, and Formosa. The arrange- ments for the provision of such assistance should include the method of discharge by the Chinese Government of the financial obligations incurred in connection with the supplies furnished and services rendered by the United States. Having in mind statements by the Generalissimo that China's internal political difficulties will be settled by political methods, it should be clearly understood that military assistance furnished by the United States would not be diverted for use in fratricidal warfare or to support undemocratic administration. The exact amount of assistance which can bep rovided by the United States will need to be agreed between the U.S. and Chinese Governments and will depend on a detailed study by the Chinese and U.S. military authorities. It appears practicable at this time, subject to suitabl e mutual arrangements concerned with the provision of equip- ment and supplies to complete the 39-division program, to furnish certain naval craft, particularly those suit- able for coastal and river operations, and to equip an air force of commen surate size. After consulting General Wedemeyer further and wh en the problem has been considered by the Joint Chiefs of Staff and other U.S. agenci es con- cerned and we have completed our determination of avail- ability of equipment, we will be in a position to deter- mine what assistance, if any, beyond the 39-division program will be feasible. The exact size, composition and functions of an advisory mission will be dependent upon the status and character of the mission and on the size and composition of the Chinese armed forces which may be agreed between the U.S. and Chinese Governments. As to the status and character of the mission, it might be more desirable to relieve officers from active duty for appointment by the Chinese Government than for this Government to or ganize and appoint such a group. A AECHIVES AN SATIONAL REDORDS SERVICE"