Evening star., 1947-08-11

First OF three articles.)
Treasury Secretary John Snyder, it was stated
on highest authority today, will have deciding
voice on any new large-scale loans for China
that may be recommended by Lieut.. Gen.
Albert G. Wedemeyer.
Gen. Wedemeyer was sent to China last
month by Secretary Of State Marshall to for
mulate a comprehensive program to bolster
the inflated currency and to aid the strife
racked Chang Kai-shek government. But on
the basis of the authoritative statement today,
Snyder will have as much to say as Marshall
about what aid, If any, will be extended to
China.
1t was pointed out that in addition to his close
personal relations with President Truman, Sny-
der also is head of the powerful National Ad-
visory Council on International Monetary Prob
lens. This agency is the top United States au.
thority on the granting OF aid to foreign coun-
tries.
Snyder's little-known controlling role in the
Chinese problem Is Of utmost significance. It
may mean that certain influences and factors
which in the past exerted great weight in the
granting of billions of dollars to China may be
eliminated.
Pending Wedemeyer's report, Snyder and
other high Government and military authori-
ties are withholding any public comment on the
critical Chinese problem. But no secret is being
made OF the fact that the problem is viewed
with gravest concern and perplexity.
This Is due to two underlying factors: One,
China's strategic position not only in the far
East but in the entire world struggle against
Soviet aggression; two, the corruption, incom-
petence and lack Of control of the Nationalist
government.
This second factor Is hamstringing the
efforts Of the United States to aid China and
to resist the spread of communism there.
With the United States now the dominant
power in the Pacific what occurs in China Is
of utmost Importance militarily. It is vital for
United States security that China remain
under stable and friendly government. A
Soviet or other hostile regime would jeopardize
our entire Pacific defense system.
War Lords Run China.
The Kuomintang government, headed by
Chang Kai-shek and a clique of lawless war
lords and boodling officials, is making it ex-
tremely difficult for the United States to stabi-
lize China.
Numerous messages received by the State,
Treasury and Commerce Departments from
American businessmen in China vigorously
criticize the Nationalist regime. Some Of these
complaints charge Gne government WIN Del0g
"an organized confusion" Others allege wide
spread graft and blackmarketing by oficials,
and practically universal pilfering by the mill
tary.
Some Of the communications bluntly advise
against extending any more aid to the Ma
tionalist government except under direct Amer
ican supervision. The writer's warn that unless
this is done, the money and goods will fall into
the hands Of high-placed Hooters" for their
own enrichment, as has happened extensively
in the past.
A highly significant indication of the deep
seated distrust of the Chang Kai-shek regime
among non-Communist Chinese is the attitude
of the large Chinese community in San Fran
cisco.
More than 10000 Chinese reside in San
Franciscos famous Chinatown. This commu-
nifty has long been strongly pro- -Kuomintang
Every fall, Chinatown has conducted q rice
bowl drive for the collection OF hundreds of
thousands of dollars for Chinese relief. This
year, Chinatown leaders have decided not to
have such drive-a decision, 1t is author
itatively stated, made as q result of wide
spread resentment against the Kuemintang.
One Of the principal factors behind this