Marshall Mission Files, Lot 54–D270

Minutes of Conference Between General Marshall and General Chen Cheng, at No. 5, Ning Hai Lu, Nanking, May 7, 1946, 3:30 p.m.

Also present: Captain Soong
Mr. Shen

General Chen Cheng opened the meeting by informing General Marshall that he was faced with the major task of reorganizing the Chinese army and that he wished General Marshall’s advice.

General Chen said that his greatest difficulty was the handling of demobilized officers since these officers, being professional army men, would have no jobs to return to. For instance, out of the 135 divisions reorganized last year, there still remained 30,000 discharged officers without employment. The new army reorganization will create additional difficulties. By the end of the first stage the new army will be reduced to 90 divisions with 490,000 officers. At the end of the second stage, the army will be reduced to 60 divisions with an officer strength of 150,000. This alone creates a surplus to army needs of approximately 300,000 officers.

General Chen stated that the National Military Council consists of 1,180,000 employees. This organization too would have to be reorganized and personnel released who, although not professional soldiers, hold the equivalent rank and have no civilian jobs to which to return. In connection with the reorganization of the National Military Council, General Wedemeyer assisted personally, and more recently with a staff of officers, the Chinese Government in developing an appropriate plan. General Chen stated that a plan typical of U. S. organization had been accepted and that he favored the American system because, (1) military control was separated from political control and (2) there is a distinct separation between planning and execution.

General Marshall asked General Chen what was being done to meet the problem of demobilized officers. General Chen replied that a plan had been developed which envisages placing demobilized officers in [Page 340] civil governmental agencies: that the Minister of War is coordinating the placing of this personnel. The plan provides for handling certain personnel in a second category which in effect would be a pool from which civil agencies could draw. It is hoped that through this procedure qualified personnel can be put to advantageous use in order that waste might be developed into National production.

General Marshall stated that General Chen had covered a tremendous subject and although he would like to think over the matter he had a few comments. With reference to the reorganization of the National Military Council he cautioned General Chen to apply the plan furnished by the U. S. officers in an intelligent manner in order that it would be suited to the Chinese system. General Marshall indicated that probably the most important consideration was the separation of the military from the political. General Marshall pointed out that ever since the Civil War in the United States the Secretary of War had been a civilian; the reason for this was to further emphasize the separation between the military and the political.

General Marshall stated that one of his principal concerns with reference to the military system in China was the burden of the army on the government. He pointed out that 70% of the total budget—which he understood was the present military allocation—was exorbitant to the point of inviting financial chaos.

With reference to the demobilized personnel, General Marshall suggested the use of colleges and schools to train excess personnel in civilian trades and occupations. This would create the healthy condition of permitting Chinese school system to reap benefit for the good of China at the same time, it trained many citizens. General Marshall stated that consideration should be given to the use of some already organized civilian organization to handle the problem of demobilized personnel; it would be more advantageous to utilize an existing civil organization instead of creating a new army organization to handle demobilized personnel.

General Chen asked General Marshall’s advice on the possibility of using military personnel for performing certain civilian jobs such as handling freight on river and rail traffic. He pointed that such a procedure would preclude unreasonable charges now levied for these services. General Marshall pointed out that such a procedure would not assist in demobilizing the army which it seemed to him was the major consideration. He further pointed out that this would tend to involve the army in big business which must be avoided since this would be the first step toward involving it in politics.

General Marshall concluded that he would like to see General Chen Cheng again for the purpose of discussing this matter further.