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Tsien Hsue-shen, at the urging of Theodore von Karman, begins graduate studies at the California Institute of Technology. He will continue there for nearly twenty years, first as a student, finally as the Goddard Professor, becoming one of the leading rocket scientists in the United States.

FBI agents interrogate Tsien Hsue-shen on allegations that he is a Communist. The same day his security clearance is revoked, making it virtually impossible to continue meaningful work in rocketry. The allegations seem unlikely to his associates at CalTech (his wife was the daughter of one of Chiang Kai-shek's leading military strategists). Two weeks later, Tsien announces his intention to return to China. Tsien, denied the possibility to work, becomes enmeshed in a tug-of-war between differing viewpoints in the US government bureaucracy: those that want to deport him as an undesirable alien, and those that want to keep him in the country because of what he knows.

After five years of wrangling, and secret talks in Geneva between the Red Chinese and US governments, Tsien is deported from the United States. Upon arrival in China, he was immediately put to work as head of the Chinese missile program. He had to introduce US systems engineering approaches to Chinese engineers, and build the technical infrastructure to enable China to build rockets.

Tsien Hsue-shen submits a secret proposal to the State Council for ballistic missile development - 'Prospectus for Establishment of a National Defence Aviation Industry'. The proposal calls for the establishment of a research facility for aeronautics and missile development.

The Fifth Academy of the Ministry of National Defence is founded for development of ballistic missiles. Tsien is named its first Director on October 8. The Academy is established on the premises of an old hospital and two sanatoriums, with an initial staff of 100 high school graduates and 100 to 200 college graduates. Tsien teaches an 'Introduction to Rocket Technology' course while Zhuang Faggan from CalTech teaches aerodynamics.

Russian and China sign New Defense Technical Accord, whereby Russia will supply China with protoype atomic bomb and two R-2 missiles, and related technical data. Under the agreement the Soviet Union will provide to China the necessary specialists, training, and tooling for licensed production of the R-2 ballistic missile (an improved version of the V-2).

Tsien appoints himself head of the DF-3 project - a quantum leap to build a 10,000 km range liquid oxygen/kerosene propellant intercontinental ballistic missile. The objective proves much too ambitious and is eventually cancelled. It is the last missile project Tsien is allowed to manage.

Tsien had conducted a series of meetings with the Chinese leadership during the year to redefine China's missile development plans. There are clashes between Tsien, who favours an American engineering approach, and his staff, who were trained in Russian and favour the Soviet approach. Finally the missiles were defined by their target objectives, and a new development plan was adopted, with definite goals. The 1059 missile (copy of Russian R-2) was redesignated DF-1. The DF-2 was to be improved to carry an atomic bomb to a range sufficient to hit Japan. The DF-3 ICBM was cancelled, and the new DF-3 project would involve development of a nuclear-tipped missile capable of reaching the Philippines (earlier referred to as the DF-1). The DF-4 was to be capable of hitting Guam, and the DF-5 would be an ICBM capable of reaching the United States. The DF-2, DF-3 and DF-4 would use strap-down accelerometer guidance packages, while the DF-5 was to be equipped with a full-fledged inertial guidance unit.