Part I—General Statement
China’s history is replete with examples of encroachment, arbitrary action, special privilege, exploitation, and usurpation of territory on the part of foreign powers. Continued foreign infiltration, penetration or efforts to obtain spheres of influence in China, including Manchuria and Taiwan (Formosa), could be interpreted only as a direct infringement and violation of China’s sovereignty and a contravention of the principles of the Charter of the United Nations. It is mandatory that the United States and those other nations subscribing to the principles of the Charter of the United Nations should combine their efforts to insure the unimpeded march of all peoples toward goals that recognize the dignity of man and his civil rights and, further, definitely provide the opportunity to express freely how and by whom they will be governed.
Those goals and the lofty aims of freedom-loving peoples are jeopardized today by forces as sinister as those that operated in Europe and Asia during the ten years leading to World War II. The pattern is familiar—employment of subversive agents; infiltration tactics; incitement of disorder and chaos to disrupt normal economy and thereby to undermine popular confidence in government and leaders; seizure of authority without reference to the will of the people—all the techniques skillfully designed and ruthlessly implemented in order to create favorable conditions for the imposition of totalitarian ideologies. This pattern is present in the Far East, particularly in the areas contiguous to Siberia.
If the United Nations is to have real effect in establishing economic stability and in maintaining world peace, these developments merit high priority on the United Nations’ agenda for study and action. Events of the past two years demonstrate the futility of appeasement based on the hope that the strongly consolidated forces of the Soviet Union will adopt either a conciliatory or a cooperative attitude, except as tactical expedients. Soviet practice in the countries already occupied or dominated completes the mosaic of aggressive expansion through ruthless secret police methods and through an increasing political and economic enslavement of peoples. Soviet literature, confirmed repeatedly by Communist leaders, reveals a definite plan for expansion far exceeding that of Nazism in its ambitious scope and dangerous implications. Therefore in attempting a solution to the problem presented in the Far East, as well as in other troubled areas of the world, every possible opportunity must be used to seize the initiative in order to create and maintain bulwarks of freedom.
Notwithstanding all the corruption and incompetence that one notes in China, it is a certainty that the bulk of the people are not disposed to a Communist political and economic structure. Some have become affiliated with Communism in indignant protest against oppressive police measures, corrupt practices, and maladministration of National Government officials. Some have lost all hope for China under existing leadership and turn to the Communists in despair. Some accept a new leadership by mere inertia.
Indirectly, the United States facilitated the Soviet program in the Far East by agreeing at the Yalta Conference to Russian re-entry into Manchuria, and later by withholding aid from the National Government. There were justifiable reasons for these policies. In the one case we were concentrating maximum Allied strength against the Japanese in order to accelerate crushing defeat and thus save Allied lives. In the other, we were withholding unqualified support from a government within which corruption and incompetence were so prevalent that it was losing the support of its own people. Further, the United States had not yet realized that the Soviet Union would fail to cooperate in the accomplishment of world-wide plans for postwar rehabilitation. Our own participation in those plans has already afforded assistance to other nations and peoples, friends and former foes alike, to a degree unparalleled in humanitarian history.
Gradually it has become apparent that the World War II objectives for which we and others made tremendous sacrifices are not being fully attained, and that there remains in the world a force presenting even greater dangers to world peace than did the Nazi militarists and the Japanese jingoists. Consequently the United States made the decision in the Spring of 1947 to assist Greece and Turkey with a view to protecting their sovereignties, which were threatened by the direct or inspired activities of the Soviet Union. Charges of unilateral action and circumvention of the United Nations were made by members of that organization. In the light of its purposes and principles such criticism seemed plausible. The United States promptly declared its intention of referring the matter to the United Nations when that organization would be ready to assume responsibility.
It follows that the United Nations should be informed of contemplated action with regard to China. If the recommendations of this report are approved, the United States should suggest to China that she inform the United Nations officially of her request to the United States for material assistance and advisory aid in order to facilitate China’s postwar rehabilitation and economic recovery.
This will demonstrate that the United Nations is not being circumvented, and that the United States is not infringing upon China’s sovereignty, but contrary-wise is cooperating constructively in the interest of peace and stability in the Far East, concomitantly in the world.
The situation in Manchuria has deteriorated to such a degree that prompt action is necessary to prevent that area from becoming a Soviet satellite. The Chinese Communists may soon gain military control of Manchuria and announce the establishment of a government. Outer Mongolia, already a Soviet satellite, may then recognize Manchuria and conclude a “mutual support agreement” with a de facto Manchurian government of the Chinese Communists. In that event, the Soviet Union might accomplish a mutual support agreement with Communist-dominated Manchuria, because of her current similar agreement with Outer Mongolia. This would create a difficult situation for China, the United States and the United Nations. Ultimately it could lead to a Communist-dominated China.
The United Nations might take immediate action to bring about cessation of hostilities in Manchuria as a prelude to the establishment of a Guardianship or Trusteeship. The Guardianship might consist of China, Soviet Russia, the United States, Great Britain and France. This should be attempted promptly and could be initiated only by China. Should one of the nations refuse to participate in Manchurian Guardianship, China might then request the General Assembly of the United Nations to establish a Trusteeship, under the provisions of the Charter.
Initially China might interpret Guardianship or Trusteeship as an infringement upon her sovereignty. But the urgency of the matter should encourage a realistic view of the situation. If these steps are not taken by China, Manchuria may be drawn into the Soviet orbit, despite United States aid, and lost, perhaps permanently, to China.
The economic deterioration and the incompetence and corruption in the political and military organizations in China should be considered against an all-inclusive background lest there be disproportionate emphasis upon defects. Comity requires that cognizance be taken of the following.
Unlike other Powers since VJ-Day, China has never been free to devote full attention to internal problems that were greatly confounded by eight years of war. The current civil war has imposed an overwhelming financial and economic burden at a time when resources and energies have been dissipated and when, in any event, they would have been strained to the utmost to meet the problems of recovery.
The National Government has consistently, since 1927, opposed Communism. Today the same political leader and same civil and military officials are determined to prevent their country from becoming a Communist-dominated State or Soviet satellite.
Although the Japanese offered increasingly favorable surrender terms during the course of the war, China elected to remain steadfast with her Allies. If China had accepted surrender terms, approximately a million Japanese would have been released for employment against American forces in the Pacific.
I was assured by the Generalissimo that China would support to the limit of her ability an American program for the stabilization of the Far East. He stated categorically that, regardless of moral encouragement or material aid received from the United States, he is determined to oppose Communism and to create a democratic form of government in consonance with Doctor Sun Yat-sen’s principles. He stated further that he plans to make sweeping reforms in the government including the removal of incompetent and corrupt officials. He stated that some progress has been made along these lines but, with spiraling inflation, economic distress, and civil war, it has been difficult to accomplish fully these objectives. He emphasized that, when the Communist problem is solved, he could drastically reduce the Army and concentrate upon political and economic reforms. I retain the conviction that the Generalissimo is sincere in his desire to attain these objectives. I am not certain that he has today sufficient determination to do so if this requires absolute overruling of the political and military cliques surrounding him. Yet, if realistic United States aid is to prove effective in stabilizing the situation in China and in coping with the dangerous expansion of Communism, that determination must be established.
Adoption by the United States of a policy motivated solely toward stopping the expansion of Communism without regard to the continued existence of an unpopular repressive government would render any aid ineffective. Further, United States prestige in the Far East would suffer heavily, and wavering elements might turn away from the existing government to Communism.
In China and Korea, the political, economic, and psychological problems are inextricably mingled. All of them are complex and are becoming increasingly difficult of solution. Each has been studied assiduously in compliance with your directive. Each will be discussed in the course of this report. However, it is recognized that a continued global appraisal is mandatory in order to preclude disproportionate or untimely assistance to any specific area.
The following three postulates of United States foreign policy are pertinent to indicate the background of my investigations, analyses, and report:
The United States will continue support of the United Nations in the attainment of its lofty aims, accepting the possible development that the Soviet Union or other nations may not actively participate.
Moral support will be given to nations and peoples that have established political and economic structures compatible with our own, or that give convincing evidence of their desire to do so.
Material aid may be given to those same nations and peoples in order to accelerate postwar rehabilitation and to develop economic stability, provided:
That such aid shall be used for the purposes intended.
That there is continuing evidence that they are taking effective steps to help themselves, or are firmly committed to do so.
That such aid shall not jeopardize American economy and shall conform to an integrated program that involves other international commitments and contributes to the attainment of political, economic, and psychological objectives of the United States.