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66-3_11 - 1949-11-01

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MEMORANDUM

A list of military materiel procured or being procured for the Chinese Government by agencies of the U.S. Government under the $125 Million Grants which has not yet bee n shipped is as follows:

Estimated as of November 1, 1949

Quantity Value

Light tanks 100 ea. Scout Cars, M3A1 100 ea. Motor carriages, 75 mm. Howitzer 125 ea. Rifles, Auto., Brng., M1918A2 (BAR) 1,000 ea. Mounts, combination, M23A1 for 37 mm. gu n (used on light armored car) 100 ea. Shells for 4.2" Chemical Mortar 25,000 ea. Tires (various) 7,000 ea. Automotive spare parts $1,680,000 Weapons spare parts 85,000 Tool s and tool sets 240,000 Raw materials (inclusive of gun powder) 1,850,000 Antimony sulphide (for vulcanizing rubber) 5,000 lbs. Gyro stabilizers 100 ea. Dry batteries 40,000 ea. Radio sets 600 ea. Radio spare parts 6,500 Electrical equipment (including one 5 KW diesel driven generators per set) 12 sets Medical supplies and equipment 995,000 Vacuum tubes 47,000 Naval spare parts (hull and engineering spares) 265,000 Aircraft spare parts 305,000 Plastic film 80,000

The foregoing is a listing of significant unshipped items. Miscellaneous other items requested by the Chinese Government remain to be procured and/or shipped. A rough estim ate of the dollar value of all unshipped items, by federal agencies concerned, is as follows:

Army $6,793,500 Navy 310,000 Air Force 390,700 Treasury - Bureau of Federal Supply 500,000 $7,994,200

The following list covers military materiel being procured by the Chinese through commercial sources in this country on which as yet unused export licenses have been issued . Some of the items listed are being procured with funds from the $125 Million Grants, but the exact quantity of such items is not known.

A. Items Other than Aircraft and Aircraft Parts

1. Items approved for export

Quantity Value Drop steel forgings $ 4,550 Tank spares 400 tons 60,000 Motor carriages tracks 40 sets 19,000 Motor carriages (in transit from U.K.) 30 ea. 75,000 Sherman tanks (in transit from U.K.) 85 ea. 300,000 Powder and ammunition 205,475 Propellant flakes and powder 666,520 Cartridges (in transit from Canada) 81,000,000 rnds 4,900,000 Ammunition*, .30 caliber 21,281 Shot firing cord 4,570 Motor carriages* 42 ea. 100,000 Light tanks and dozers 9 ea. 72,000 Mauser rifles & ammunition, 7.9 mm 4,215,00 (in transit - Belgium) Mauser rifles & machine guns, 7.9 mm 559,100 (in transit - Belgium) Telescopes and periscopes 2,300 Gun-sights 1,000 Gun-sight noise filters 45 Smokeless powder 3,355 Rocket igniters 5,500 Tanks spare parts* 200 tons 30,000

2. Items not yet approved for export but requested by the Chinese Government.

Used light armored cars* 200 ea. 50,000 Used tanks with flame throwers* 4 ea. 8,000 Tracked landing vehicles* 156 ea. 75,000 Staghound armored cars (in transit from 200 ea. 200,000 United Kingdom) Rifles & machine guns (in transit from Belgium) 84,000 Machine guns (in transit from Belgium) 3,000 ea. 1,395,000

* Items for which the Chinese have made arrangements with Commerce International Trading Corporation for purchase from U.S. Army surplus stocks.

3. Aircraft and Aircraft Parts

There are still valid export licenses for approximately $6,800,000 worth of aircraft and aircraft parts purchased commercially by the Chinese Government. As this total includes some $2,700,000 for 180 AT6 aircraft which have been reported by the Chinese to have been shipped on a continuing basis throughout this year, it is believed that a good portion of the $6,800,000 total has already been shipped, though customs reports on such shipments have not reached the Department.