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763 SECCE TAB "D" CHINESE PEACETILE ARMY PROGRAM This program was designed by the War Department to provide equipment to assist an integrated and reorganized Chinese Army in the establishment of an appropriate military organization. No supply action has been taken. It was tentatively decided that when the Chinese armies had been reduced to a total of sixty, the U.S. should (a) make available sufficient equipment to enable the Chinese to establish ten active (U.S. type) divisions, and (b) assist the Chinese Government in the procurement of sufficient equipment to establish forty similar in- active divisions. In order to ensure the availability of military type items, General MacArthur was directed to retain within his disposition level, from excesses available in the theater, the hilitary type items of equipment for ten U.S. Army divisions. Due to the short- age of funds and personnel no special maintenance facilities were established for this equipment, which is deteriorating rapidly. It is estimated that at the present time only 75% of the original equipment is available, while by September 1947 only 50% is expected to be available. Although this program was informally discussed with Chinese representatives, it is understood that they were told categorically that there was no formal commitment for the implementation of this program. There may, however, be an implied commitment to implement this program if an integrated Chinese Army is established. If it is decided to carry out this program, it will be necessary for the State Department to authorize the transfers under the Surplus Sales Act. DECLASSIFIED E. o. 11652, Sec. 3(E) and 5(D) or (E) OSD letter, April 12, 1974 - SERVICE" RECORDS "NATIONAL AND of By NLT- HC. NARS Date 6.26.75 COVERAGED SEC-

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    "ocrText": "763\nSECCE\nTAB \"D\"\nCHINESE PEACETILE ARMY PROGRAM\nThis program was designed by the War Department to\nprovide equipment to assist an integrated and reorganized\nChinese Army in the establishment of an appropriate\nmilitary organization. No supply action has been taken.\nIt was tentatively decided that when the Chinese armies\nhad been reduced to a total of sixty, the U.S. should\n(a) make available sufficient equipment to enable the\nChinese to establish ten active (U.S. type) divisions,\nand (b) assist the Chinese Government in the procurement\nof sufficient equipment to establish forty similar in-\nactive divisions. In order to ensure the availability\nof military type items, General MacArthur was directed\nto retain within his disposition level, from excesses\navailable in the theater, the hilitary type items of\nequipment for ten U.S. Army divisions. Due to the short-\nage of funds and personnel no special maintenance\nfacilities were established for this equipment, which\nis deteriorating rapidly. It is estimated that at the\npresent time only 75% of the original equipment is\navailable, while by September 1947 only 50% is expected\nto be available. Although this program was informally\ndiscussed with Chinese representatives, it is understood\nthat they were told categorically that there was no\nformal commitment for the implementation of this program.\nThere may, however, be an implied commitment to implement\nthis program if an integrated Chinese Army is established.\nIf it is decided to carry out this program, it will be\nnecessary for the State Department to authorize the\ntransfers under the Surplus Sales Act.\nDECLASSIFIED\nE. o. 11652, Sec. 3(E) and 5(D) or (E)\nOSD letter, April 12, 1974\n- SERVICE\" RECORDS \"NATIONAL AND\nof\nBy NLT- HC. NARS Date 6.26.75\nCOVERAGED\nSEC-"
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