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760 TAB "A" THE CHINESE AIR FORCE PROGRAM 1. This program was designed to improve the efficiency of the Chinese Air Force during the war, and approved for implementation, after the completion of the war, by SWNCC 83/17, as a program to supply equipment for 8 1/3 groups and supporting units. Equipment for this program can be made available to the Chinese only through the machinery of the Surplus Property Sales Act. The estimated value of the complete program is $141,200,000; transfers already completed aggregate $30,000,000; the total value of supplies presently available for transfer from War Depart- ment excess is $53,775,000 of this latter figure, $25,975,000 represents military type items, and $27,800,000 represents civilian items. Cost of supplies required to complete the program, but not available from War Depart- ment excesses, is $57,425,000. Supply action was temporarily suspended by the State Department on 11 August 1946, at which time the War Department directed its field agencies to suspend the turnover of equipment to the Chinese but to be prepared to resume when directed. Supply of civilian type items only was later authorized. 2. Civilian type items have been earmarked for the program in the U.S., the Philippines and Okinawa. High level polioy decisions will be required to clarify the surplus property muddle (involving the Foreign Liquidation Corporation and bulk sales contracts to the Philippines and China) now interfering with the transfer of items to China. The problems regarding transfer of such equipment in the Philippines were raised in a letter from the Sec- retary of War to the Secretary of State dated 16 December 1946; no reply has yet been received. One of the greatest factors interfering with the transfer of civilian type items to China is payment for transportation. The War Department does not possess the funds to pack and ship the equipment from the U.S., the Philippines or Okinawa. 3. Military type items stookpiled in the Pacific Areas for the program are rapidly deteriorating, In order to meet the initial requirements of the 8 1/3 Group Program, 129 additional airoraft must be turned over to the Chinese. In order to rehabilitate only the 37 B-24's included in this figure, it is estimated that a total of 300,000 mon hours and $550,000 would be required. Military type iters stookpiled in the continental U.S. for this pro- gran are in good repair, but no funds are available in the War Department to effect a shipment of these supplies overseas. SECPET e ARCHIVES SERVICE" RECORDO continue DECLASSIFIED E. o. 11652, Sec. 3(E) and 5(D) or (E) OSD letter, April 12, 1974 By NLT. He , NARS Date 6-26-75

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    "ocrText": "760\nTAB \"A\"\nTHE CHINESE AIR FORCE PROGRAM\n1. This program was designed to improve the efficiency\nof the Chinese Air Force during the war, and approved for\nimplementation, after the completion of the war, by SWNCC\n83/17, as a program to supply equipment for 8 1/3 groups\nand supporting units. Equipment for this program can be\nmade available to the Chinese only through the machinery\nof the Surplus Property Sales Act. The estimated value of\nthe complete program is $141,200,000; transfers already\ncompleted aggregate $30,000,000; the total value of\nsupplies presently available for transfer from War Depart-\nment excess is $53,775,000 of this latter figure,\n$25,975,000 represents military type items, and $27,800,000\nrepresents civilian items. Cost of supplies required to\ncomplete the program, but not available from War Depart-\nment excesses, is $57,425,000. Supply action was\ntemporarily suspended by the State Department on 11 August\n1946, at which time the War Department directed its field\nagencies to suspend the turnover of equipment to the\nChinese but to be prepared to resume when directed. Supply\nof civilian type items only was later authorized.\n2. Civilian type items have been earmarked for the\nprogram in the U.S., the Philippines and Okinawa. High\nlevel polioy decisions will be required to clarify the\nsurplus property muddle (involving the Foreign Liquidation\nCorporation and bulk sales contracts to the Philippines\nand China) now interfering with the transfer of items to\nChina. The problems regarding transfer of such equipment\nin the Philippines were raised in a letter from the Sec-\nretary of War to the Secretary of State dated 16 December\n1946; no reply has yet been received. One of the greatest\nfactors interfering with the transfer of civilian type\nitems to China is payment for transportation. The War\nDepartment does not possess the funds to pack and ship the\nequipment from the U.S., the Philippines or Okinawa.\n3. Military type items stookpiled in the Pacific\nAreas for the program are rapidly deteriorating, In order\nto meet the initial requirements of the 8 1/3 Group\nProgram, 129 additional airoraft must be turned over to\nthe Chinese. In order to rehabilitate only the 37 B-24's\nincluded in this figure, it is estimated that a total of\n300,000 mon hours and $550,000 would be required. Military\ntype iters stookpiled in the continental U.S. for this pro-\ngran are in good repair, but no funds are available in the\nWar Department to effect a shipment of these supplies\noverseas.\nSECPET\ne ARCHIVES SERVICE\" RECORDO\ncontinue\nDECLASSIFIED\nE. o. 11652, Sec. 3(E) and 5(D) or (E)\nOSD letter, April 12, 1974\nBy NLT. He , NARS Date 6-26-75"
}