THE DIPLOMACY OF SECURITY: BEHIND THE NEGOTIATIONS OF ARTICLE 18 OF THE SINO-AMERICAN COOPERATIVE AGREEMENT

In early February, 1942, Commander M. E. Miles proposed the establishment of a radio intelligence unit in China. His proposal led to the creation of Naval Group China (NGC), the umbrella organization for units that performed weather forecasting, advised and trained Chinese guerillas, and intercepted and analyzed Japanese radio traffic. NGC was part of the Sino-American Cooperative Organization (SACO). Most of the commitments of China and NGC were formalized on 15 April 1943 with the signing of the Sino-American Cooperative Agreement (SACO). Article 18 required further delicate negotiations between Miles and General Tai Li, head of the Bureau of Investigation and Statistics (China's secret service). Miles was soon trapped between his commitment to Tai Li and Joseph Wenger's concern that any intercepted traffic shared with the Chinese would quickly become available to the Japanese via insecure Chinese codes. Fleet Radio Unit, China (FRUCHI) resolved this dilemma.