William Douglas Pawley was born in Florence, South Carolina, on 7th September, 1896. His father was a wealthy businessman based in Cuba and Pawley attended private schools in both Havana and Santiago. He later returned to the United States where he studied at the Gordon Military Academy in Georgia.
In 1925 Pawley began work as an estate agent in Miami. Two years later he began working for the Curtiss-Wright Corporation. In 1928 Pawley returned to Cuba to become president of the Nacional Cubana de Aviacion Curtiss. He held this post until the company was sold to Pan American Airways in 1932.
Pawley now became president of the Intercontinent Corporation based in New York. The following year he moved to China where he became president of the China National Aviation Corporation. Over the next five years he built three aircraft factories for the Chinese government of Chiang Kai-shek.
Pawley also formed a business relationship with Tommy Corcoran. In 1940, President Franklin D. Roosevelt had asked Corcoran to establish a private corporation to provide assistance to the nationalist government in China. Roosevelt even supplied the name of the proposed company, China Defense Supplies. He also suggested that his uncle, Frederick Delano, should be co-chairman of the company. Chiang nominated his former finance minister, Tse-ven Soong, as the other co-chairman.
For reasons of secrecy, Corcoran took no title other than outside counsel for China Defense Supplies. William S. Youngman was his frontman in China. Corcoran's friend, Whitey Willauer, was moved to the Foreign Economic Administration, where he supervised the sending of supplies to China. In this way Corcoran was able to create an Asian Lend-Lease program.
Pawley also worked closely with Claire Lee Chennault, who had been working as a military adviser to Chiang Kai-shek since 1937. Chennault told Tommy Corcoran that if he was given the resources, he could maintain an air force within China that could carry out raids against the Japanese. Corcoran returned to the United States and managed to persuade Franklin D. Roosevelt to approve the creation of the American Volunteer Group.
William Pawley became involved and he arranged for one hundred P-40 fighters, built by the Curtiss-Wright Corporation, that had been intended for Britain, to be redirected to Chennault in China. Pawley also arranged for the P-40 to be assembled in Rangoon. It was Tommy Corcoran's son David who suggested that the American Volunteer Group should be called the Flying Tigers. Chennault liked the idea and asked his friend, Walt Disney, to design a tiger emblem for the planes.
On 13th April, 1941, Franklin D. Roosevelt signed a secret executive order authorizing the American Volunteer Group to recruit reserve officers from the army, navy and marines. Pawley suggested that the men should be recruited as "flying instructors".
In July, 1941, ten pilots and 150 mechanics were supplied with fake passports and sailed from San Francisco for Rangoon. When they arrived they were told that they were really involved in a secret war against Japan. To compensate for the risks involved, the pilots were to be paid $600 a month ($675 for a patrol leader). In addition, they were to receive $500 for every enemy plane they shot down.
The Flying Tigers were extremely effective in their raids on Japanese positions and helped to slow down attempts to close the Burma Road, a key supply route to China. In seven months of fighting, the Flying Tigers destroyed 296 planes at a loss of 24 men (14 while flying and 10 on the ground).
In 1944 Pawley became president of the Industan Aircraft Manufacturing Company in Bangalore, India. Pawley was responsible for building India's first ammonium-sulfate plant in Trannvancore.
After the war Pawley became a diplomat. In 1945 Harry S. Truman appointed Pawley as U.S. Ambassador to Peru. Soon afterwards left-wing newspapers in Lima began to claim that Pawley was making "lucrative deals" for himself in Peru. This involved transporting unspecified goods in and out of Peru.
In 1948 Pawley became Ambassador to Brazil. During this time he became a FBI informant. He passed information to J. Edgar Hoover claiming that Spruille Braden, the Ambassador to Argentina was under the control of communist advisers such as Gustavo Duran and George Michanowsky. In a document dated the 7th September, 1948, Pawley suggested that Braden was attempting to expose "non-existant and imagery Nazis in Latin America" as a cover for his communist sympathies. Pawley also claimed that William A. Wieland, who worked as a press officer for the embassy in Brazil, held "anti-capitalist" views.
Pawley continued to be involved in various business projects. He was a close friend of President Rafael Trujillo and together with George Smathers, had invested in the bauxite industry in the Dominican Republic. He was also extremely friendly with Fulgencio Batista and in 1948 he established Autobuses Modernos in Cuba. A company he later sold to Batista.
On 7th November, 1949, Pawley sent a memorandum to the State Department suggesting that a small group of Americans should be sent to Formosa in order to help protect the government of Chiang Kai-shek. Pawley claimed that Dean Acheson rejected the idea after consulting with advisers such as Owen Lattimore, John C. Vincent and John Davis. In February, 1951 Pawley became special assistant to Acheson. Later that year he held a similar post under Robert A. Lovett. However, he discovered that the State Department considered him to be a reactionary and he was denied access to secret documents concerning Latin America.
Pawley was an active member of the Republican Party. A close friend of both President Dwight Eisenhower and