Evening star., 1951-06-06

SnhSSVAB ~ ~ -
It was quite impossible, it was
thought, to handle that situation
Ito neutralize the island, if we sale
we wanted to prevent the islanc
from being attacked. If we did moi
prevent them from attacking from
the island-it, would not be posi-
BILE to neutraliZe the island, if we
took that attitude.
Chairman Russell Il under
stand you stated the primary pur-
pose was to protect Formosa,
rather than protect the Chinese
mainland?
Secretary Acheson-Yes, sir; no
question about 1t.
Chairman Russell =. Mr.. Sec
retary, I at one time was one OF
the most enthusiastic advocates
Of this Government doing every
thing they possibly could to as
sist the Generalissimo Chang Kai-
shek in his struggle with the Chi
nese Communists. The thing that
discouraged me more in that posi-
ton than any other single phase
was a telegram from the United
States Chamber of Commerce in
one of the largest cities of China.
I think it was
Secretary Acheson-I wish you
would not mention that name
This is a telegram which was sent
to us. received by us on the 10th
of March, l949, from the
Chamber Of Commerce of a city
in China. I have asked that the
name Of the city not be used be-
cause I am advised that we are
not sure that the people that are
involved in this are all in safe
place. =.
AchesOn Reads Telegram.
The telegram is as follows:
Reference is made to discussions
now understood to be in process
in Washington concerning further
economic aid to the Nationalist
government Of China.
This chamber wishes to place
itself on record as being opposed
to granting further American eco
nomic aid to the Nationalist gov
ernment except on a 'quid pro-
basis and on such terms as will
guarantee the effective use of such
aid in the interests of Sino-Amer-
lean relations, or sat least in the
interests of China as a whole,
rather than for the benefit of self
interest groups in the past.
1T must not be inferred from
the above statement that this
chamber favors the policies of the
authorities now in control in
North China. insofar as such pol
icies have so far been promulgated.
"On the contrary it is our con-
sidered belief that only after the
control OF China politics has been
taken out Of the hands of either
extremist group can economic aid.
In the strictest sense Of the word,
be effectively utilized.
The Nationalist government
have since vi day avowedly been
committed to a policy of eradicat-
ing communism from China. On
the strength of such q policy. be-
ing in the mutual interests of
China and the United States. they
have sought and are being granted
considerable aid from the United
States. insisting that such aid be
granted them as a sovereign ma
tion and free Of any restrictions
on its end use, either economic
or military.
Those OF us who have been
able to directly observe the oper-
alton OF this policy have seen
prostitution OF the Nationalist
government factions and the ac-
complishment Of directly opposite
ends. Military, civil and economic
incompetence, or worse, on the
part OF Nationalist government Of
nclals is matter of record.
Little Use Made of Surpluses.
The cry has continually been
1or more, more, and again more
aid, but it is an established fact
that little or no effective use was
made Of the huge surpluses and
postwar shipments of supplies
and that a considerable part of
ald went to favored groups and
individuals.
Prior to the ECA program, the
hundreds of millions of American
military and economic aid, and
also UNRRA. provided extremely
limited benefits to the Chinese
people. Bureaus within bureaus
set up for the administration and
distribution Of this aid proved
inept, wasteful and corrupt, totally
incapable Of implementing re-
habilitation programs, but con-
centrating instead upon inter-
bureaucratic controversies over
the control of stockpiles and the
revenue from cash sales to high
est bidders. totally disregarding
end uses.
1T can be stated without fear
OF contradiction that the Nation
alist government has never in.
vested a dollar of its own money
to make possible the utilization OF
material in rehabilitation prof.
ects. Every implementation OF
the ECA program, ably conceived
and effectively administered in its
early stages. has suffered from the
rapacity of Nationalist govern.
eminent of1cialdom.
Our administrators are able ir
their own fields. but inexperienced
in getting the wiles of self-seekine
Chinese in authority whose ex.