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The salvation of the situation, as I see it, would be the assumption of leadership by the liberals in the Government and in the minority parties, a splendid group of men, but who as yet lack the political power to exercise a controlling influence. Successful action on their part under the leadership of Generalissimo Chiang Kai-shek would, I believe, lead to unity through good government.

In fact, the National Assembly has adopted a democratic constitution which in all major respects is in accordance with the principles laid down by the all-party Political Consultative Conference of last January. It is unfortunate that the Communists did not see fit to participate in the Assembly since the constitution that has been adopted seems to include every major point that they wanted.

Soon the Government in China will undergo major reorganization pending the coming into force of the constitution following elections to be completed before Christmas Day 1947. Now that the form for a democratic China has been laid down by the newly adopted constitution, practical measures will be the test. It remains to be seen to what extent the Government will give substance to the form by a genuine welcome of all groups actively to share in the responsibility of government.

The first step will be the reorganization of the State Council and the executive branch of Government to carry on administration pending the enforcement of the constitution. The manner in which this is done and the amount of representation accorded to liberals and to non-Kuomintang members will be significant. It is also to be hoped that during this interim period the door will remain open for Communists or other groups to participate if they see fit to assume their share of responsibility for the future of China.

It has been stated officially and categorically that the period of political tutelage under the Kuomintang is at an end. If the termination of one-party rule is to be a reality, the Kuomintang should cease to receive financial support from the Government.

I have spoken very frankly because in no other way can I hope to bring the people of the United States to even a partial understanding of this complex problem. I have expressed all these views privately in the course of negotiations; they are well known, I think, to most of the individuals concerned. I express them now publicly, as it is my duty, to present my estimate of the situation and its possibilities to the American people who have a deep interest in the development of conditions in the Far East promising an enduring peace in the Pacific.

128. FACT-FINDING MISSION TO CHINA

Report by Ambassador Wedemeyer, September 19, 1947 1

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 infringe

1 United States Relations with China, Department of State Publication 3573, Far Eastern Series 30, pp. 764 to 815.

ment 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 mal-administration 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 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 post

war 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 criticisms 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 post-war 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 V-J 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 of 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 post-war 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.

PART II-CHINA

POLITICAL

Although the Chinese people are unanimous in their desire for peace at almost any cost, there seems to be no possibility of its realization under existing circumstances. On one side is the Kuomintang, whose reactionary leadership, repression and corruption have caused a loss of popular faith in the Government. On the other side, bound ideologically to the Soviet Union, are the Chinese Communists, whose eventual aim is admittedly a Communist state in China. Some reports indicate that Communist measures of land reform have gained for them the support of the majority of peasants in areas under their control, while others indicate that their ruthless tactics of land distribution and terrorism have alienated the majority of such peasants. They have, however, successfully organized many rural areas against the National Government. Moderate groups are caught between Kuomintang misrule and repression and ruthless Communist totalitarianism. Minority parties lack dynamic leadership and sizable following. Neither the moderates, many of whom are in the Kuomintang, nor the minority parties are able to make their influence felt because of National Government repression. Existing provincial opposition leading to possible separatist movements would probably crystallize only if collapse of the Government were imminent.

Soviet actions, contrary to the letter and spirit of the Sino-Soviet Treaty of 1945 and its related documents, have strengthened the Chinese Communist position in Manchuria, with political, economic and military repercussions on the National Government's position both in Manchuria and in China proper, and have made more difficult peace and stability in China. The present trend points toward a gradual

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