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.