Part IV—Conclusions
The peaceful aims of freedom-loving peoples in the world are jeopardized today by developments as portentous as those leading to World War II.
The Soviet Union and her satellites give no evidence of a conciliatory or cooperative attitude in these developments. The United States is compelled, therefore to initiate realistic lines of action in order to create and maintain bulwarks of freedom, and to protect United States strategic interests.
The bulk of the Chinese and Korean peoples are not disposed to Communism and they are not concerned with ideologies. They desire food, shelter, and the opportunity to live in peace.
CHINA
The spreading internecine struggle within China threatens world peace. Repeated American efforts to mediate have proved unavailing. It is apparent that positive steps are required to end hostilities immediately. The most logical approach to this very complex and ominous situation would be to refer the matter to the United Nations.
A China dominated by Chinese Communists would be inimical to the interests of the United States, in view of their openly expressed hostility and active opposition to 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 deterioration of the situation may result in the early establishment of a Soviet satellite government in Manchuria and ultimately in the evolution of a Communist-dominated China.
China is suffering increasingly from disintegration. Her requirements for rehabilitation are large. Her most urgent needs include governmental reorganization and reforms, reduction of the military budget and external assistance.
A program of aid, if effectively employed, would bolster opposition to Communist expansion, and would contribute to gradual development of stability in China.
Due to excesses and oppressions by government police agencies basic freedoms of the people are being jeopardized. Maladministration and corruption cause a loss of confidence in the government. Until drastic political and economic reforms are undertaken United States aid cannot accomplish its purpose.
Even so, criticism of results achieved by the National Government 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 assistance 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.
KOREA
The situation in Korea, in its political, economic and psychological aspects, is strongly and adversely influenced by the artificial barrier of the 38° North parallel separating agricultural South Korea from the more industrialized North Korea.
The South Korean economic position is grave. Agriculture is debilitated and there are few other resources.
The establishment of a self-sustaining economy in South Korea is not feasible. Accordingly, United States aid should include a minimum of capital investment and should consist chiefly of items required for support on a relief basis.
Korean Communist agents are creating unrest and fomenting disorder in South Korea.
Since the United States-Soviet Joint Commission meetings have twice ended in deadlock, and offer no real hope of success, the United Nations now seems to be the appropriate medium through which a Provisional Korean Government, functioning under a Four-Power Trusteeship, can be established.
The United States may be confronted with a situation requiring decision concerning continued occupation in South Korea should the Soviet Union withdraw her occupation forces. This could reasonably be expected to occur when the Soviet-created puppet government and its armed forces are sufficiently well established to carry out Communist objectives without the presence of Soviet troops.
The creation of an American controlled and officered Korean Scout Force, sufficient in strength to cope with the threat from the North, is required to prevent the forcible establishment of a Communist government after the United States and Soviet Union withdraw their occupation forces.