The Area itself is an unpromising piece of land. "From 36° N. Lat. on up, South of the Great Wall and West of the Yellow River, there lies a vast, desolate tract of yellow plateau, inhabited by half a million people. The plateau slopes from North to South; the further South it runs, the lower the land lies, but it is still 1000 meters above sea-level at the lowest place. This is what we have already known as Northern Shensi. In this region, the ground is always covered with a layer of yellow dust ... Furthermore, rainfall is scarce and no irrigation has been introduced, so that agricultural products are extremely scant. Under such geographical limitations, Northern Shensi has become a region notorious for its poverty."[13] For a Chinese to call an area notoriously poor implies a degree of destitution which the American mind cannot grasp. In such an area, the welcome to Communism is obvious, and the problems of Communism, once settled, are equally obvious. The probability of mineral resources opens up opportunities for development under Red rule, but these are distant.

Interpretation of the achievements of the Communist regime vary with the political standpoint of the observer, just as they do in the case of the Soviet Union. Sympathetic observers, both Western and Chinese, report enormous improvements in agriculture, fair land taxes, new cooperatives, brilliant experimental democracy, bold education, and great enthusiasm.[14] No unsympathetic Western visitors have been reported admitted, and a few neutrals came away enthusiastic; but critical Chinese have found as much to question as one might find in a similar Western situation: terrorism, puppet elections, murder both judicial and plain, sham education, and immorality are charged.

The position of the Frontier Area is clear in a few respects.[15] In the first place, it is not declining. Communist strength is believed to be growing, by persons of almost all forms of political belief; differences arise only over the rate and probable maxima of that growth. The Communist strength in the Northwest is far less than it was in South Central China seven years ago, but much of that loss of power has been compensated for by increased relations with sympathetic guerrillas. Secondly, the Communist area is strategically poorly located. The land itself is poor; the adjacent large cities are completely under Nationalist control; and the general military-political locale is something like northern Arkansas in the United States. This explains the willingness of the Nationalist commanders to avoid friction with the Communists, and the positive zest with which they suggest further consolidation of Communist forces around the one center at Yenan. It soothes the impatience of Communists who wish unrestricted rights of agitation, organization, and propaganda throughout the country. Although the Communists make little visible headway against the Japanese in the great urban slums of the coast, they are anxious to obtain freer access to city workers. Thirdly, the Communist area displays no structural peculiarities of government. Its profound difference from the rest of Free China is not a difference in institutional forms, but in the forces operating behind and through those forms. The Chinese Communists have achieved very considerable success in working within the legal limits of another state philosophy, and have done it with a minimum of violence; this augurs well for the perpetual continuation of the truce. Their practical accomplishments are extensive and novel; their leadership, brilliant; that their government should be so orthodox in form is all the more significant. By remaining within orthodox limits they challenge the National Government on common ground; the gain is theirs and China's.

Guerrilla Governments

The special area second in importance is the Hopei-Chahar-Shansi Border Region (Chin-ch'a-chi Pien-ch'ü Lin-shih Hsing-chêng Wei-yüan-hui). Widely publicized in the Western world as the Hermit Government, this regime functions altogether within the Japanese lines. A number of competent Western observers have visited this area, among them Major Evans Fordyce Carlson, Mr. Haldore Hanson, and Professor George Taylor. All have come away most enthusiastic about the work of the government. The governmental picture which emerges from their and other accounts is one of a highly flexible mechanism, working with great efficacy and superb morale.[16] The driving power behind the regime is social revolution as a means to national resistance, made easy by the flight of many former local bureaucrats, and by the treason of some ultra-conservatives, who affiliated themselves with the Provisional Government established by the Japanese in Peiping. The personnel is as genuinely United Front as may be found anywhere in the world; the position is eased by the circumjacency of the Japanese, and the formal recognition of the area by the Military Affairs Commission and the Executive Yüan.

The Border Region, like smaller guerrilla areas elsewhere in occupied China, is scarcely a domestic political problem because it is enfolded by the Japanese armies. Even a United Front area, such as the Border Region, would lead to far greater difficulties in political adjustment if established in Free China. The tension and balance between the Parties is such that this strain might not be borne. Behind the Japanese lines, where the central armies cannot do anything even if they wish, the Border Region finds Chungking's acquiescence to be stimulated by Chungking's impotence. What could or will happen if the Japanese leave the dividing area, and the Border Region has to settle the issue of status quo v. status quo ante bellum with the central government, no one knows. The Generalissimo told the present author that he did not fear the encroachments of the guerrilla groups, because he and they were all working for democracy.

Following from this involuntarily protective and insulating role of the Japanese forces is the constitutional theory of the Border Region. Unlike the Frontier Area, where it is exceedingly difficult to gloss over the autonomy of Communist rule, the Border Region is definitely established as a war-time agency, controlling territory beyond the reach of the provincial governments. The provincial governments still function, in unoccupied corners of their provinces, or in exile, and the openly provisional (lin-shih) nature of the Border Region makes it palatable even to Kuomintang conservatives.

The pattern of government is one of devolution from an Executive Committee, which was established by a meeting of officials, volunteers, mass organizations, and others at Fup'ing in January 1938. The area is divided into provincial districts which are able to function with economy of personnel. The following outline illustrates the structure of this area:[17]

EXECUTIVE COMMITTEE