August 23, 1950
Secretary Johnson telephoned the Secretary this morning and said that before he and Mr. Harriman left for the Hill to testify they wanted to make sure should questions be put to them about aid to Formosa, it would be all right with the State Department if they replied we were selling to Formosa such material for defense purposes as they were able to pay for. Secretary Johnson said that the Defense Department had our top secret letters on the subject of grants, etc., but that since no statement had as yet been put out, they wanted to be sure of their ground.
The Secretary said he had been wondering himself what he would say when he appeared before the Senate Appropriations Committee. He suggested they might say so far as any purchases the Chinese needed were concerned, they had funds remaining from the $125,000,000 grant out of which to buy; that the position of our Seventh Fleet was clear, and that General MacArthur had made a survey, as a result of which we would carry out that survey. Mr. Acheson said that he saw no objection to their giving this out.
The Secretary also spoke to Mr. Harriman along the above lines.
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