Evening star., 1949-08-05

the interests of the United States,
in view of their openly expressed
hospitality and active opposition
of those principles which the
United States regards as vital to
the peace of the world.
The Communists have the tactical
initiative in the overall military
situation. The Nationalist position
in Manchuria is precarious, and in
Shantung and Hopei Provinces
strongly disputed. Continued de-
terioration of the situation may re-
suit in the early establishment Of
a Soviet satellite government in
Manchuria and ultimately in the
evolution of a Communist-domi-
mated China.
China is suffering increasingly
from disintegration. T Her require
ments for rehabilitation are large.
Her most urgent needs include gov
ernmental reorganization and re-
forms, reduction of the military
budget and external assistance.
A program of aid, If effectively en-
ployed, would bolster opposition to
Communist expansion, and would
contribute to gradual development
of stability in China.
Due to- excuses and expressions
by government police agencies basic
freedoms of the people are being
jeopardized. Ma1administration and
corruption cause a loss of confidence
in the government. Until drastic
political and economic reforms are
undertaken, United States aid can
not accomplish its purpose.
Even so, criticism of results
achieved by the National govern
ment in efforts for improvement
should be tempered by a recognition
of the handicaps imposed on China
by eight years of war, the burden
of her opposition to communism,
and her sacrifices for the Allied
cause.
A United States program of assist
ance could best be implemented
under the supervision of American
advisors in specified economic and
military fields. Such a program can
be undertaken only If China requests
advisory aid as well as material
assistance.
1t is recommended:
That the United States Govern
ment provide as early as practic-
able moral, advisory, and material
support to { ma in order to con-
tribute to tn, early establishment
of peace in the world in consonance
with the enmciated principles of
the United Nations, and concomit-
antly to protect United States stra-
tegic interests against militant
forces which now threaten them.
That United States policies and
actions suggested in this report
be thoroughly integrated by ap-
propriate government agencies
with other international commit
ments. 1t is recognized that any
foreign assistance extended must
avoid jeopardizing the American
economy.
That China be advised that the
United States is favorably disposed
to continue aid designed to pro-
tect China's territorial integrity and
to facilitate her recovery, under
agreements to be negotiated by
representative of the two govern
ments, with the following stipula-
tions:
That China inform the United
Nations promptly of her request to
the United States for increased ma
terial and advisory assistance.
That China request the United
Nations to take immediate action to
bring about a cessation of hostili-
ties in Manchuria and request that
Manchuria be placed under a Five
Power Guardianship or, failing
that, under Trusteeship in ac-
cordance with the United Nations
Charter.
That China make effective use
of her own resources in a program
for economic reconstruction and
initiate sound fiscal policies lead
ing to reduction of budgetary
deficits.
That China give continuing evi-
dence that the urgently required
political and military reforms are
being implemented.
That China accept American ad-
visors as responsible representatives
of the United States Government in
specified military and economic
fields to assist China in utilizing
United States aid in the manner
, for which it is intended.