
In mid 1973, the US military recommended withdrawl of 47 F-5A from VNAF for repairs and treatment of heavy corrosions. By August, these aircraft were in storage at Bien Hoa. Heavy corrosion damage was beyond VNAF’s capability to repair. Only 18 were in flyable condition.
Since the US was obligated to return 20 F-5A to Taiwan and another 36 to South Korea, US DoD determined that nine F-5A at Williams AFB could be shipped to Asia to meet the commitment. It was also decided the F-5A stored at Bien Hoa would be sent to the depot at Ping Tung North AFB for rework. As for the 17 J85-13 spare engines that Taiwan provided for Project Enhance Plus, the US made arrangement with the ROC government to have them return to Taiwan since these engines had never been used nor had the original storage cans opened.
The project to repair the VNAF F-5A at Ping Tung was codenamed Project Peace Basket. As the US was required to complete the return of 20 F-5A to Taiwan by July 31, 1974, it decided to use 20 Peace Basket F-5A as credit against the 20 aircraft. The first two F-5A were delivered from Vietnam on November 7, 1973. By the end of April 1974, the first reconditioned F-5A were ready to be painted.
As Project Peace Basket was making progress, the US government was preparing to withdraw one of the two F-4 squadrons tentatively stationed at Taiwan’s CCK AFB. US officials and military personnel met with ROC Chief of General Staff, General Lai, Ming-Tang, to review the schedual for the withdrawal. The US representatives also suggested to discuss the F-5A return, F-5E acquision, and press announcement for the F-4 withdrawl. During the meeting, General Lai specifically requested that the US replace the 20 F-5A under Enhance Plus with F-4, or if not possible, with 20 additional F-5E. But the US made it clear that 20 F-5A, not F-4 or additional F-5E, would be returned.
On June 17, 1974, the ROC government issued announcement of the F-4 squadron withdrawal. The following is the text of the announcement in English:
At the request of the United States government in November 1972, a number of fighter planes of the Republic of China were loaned to the United States to meet its emergency needs. In accordance with the agreement between the governments of both sides, the United States Air Force stationed F-4 aircraft on Taiwan to fill the gap in the air defense of Taiwan. As the borrowed fighter airplanes are now being replaced, the United States F-4 aircraft, according to agreement, will be successively withdrawn from Taiwan in due time.
Note that the statement never mentioned the type and the number of aircraft involved in the loan. In a telegram sent from the US Embassy in Taipei to the State Department, it pointed out that the ROC government was very sensitive about such information.
According to another released telegram, the US was planning to withdraw the first F-4 squadron by the end of July 1974. The squadron would return to Clark AFB in the Philippines. The US would provide the 28 F-5E to ROC by the end of May 1975, at which time the second F-4 squadron would return to Kadena AFB.
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