121.893/9–1947

Memorandum by Mr. Philip D. Sprouse to General Wedemeyer

Attached is a copy of a memorandum67 recently prepared by General Tsai Wen-chih, Deputy Director of the Office of the Chief of Staff and Aide to the Gimo. The gist of this memorandum is as follows:

If the National Government does not improve its political organization thoroughly, reorganize its military strength and stabilize the economy in a decisive manner, the political, military and economic situation will end in total bankruptcy in a year. Communist forces are superior to those of the National Government in morale, material strength and manpower reserves. Mobilization of resources, as well as the financial situation and commodity price levels, is superior in the Communist areas. The Communists through their organizing power can mobilize the entire manpower and resources in north China and Manchuria for war while the Government carries on war only with its regular troops. Communist troops now “carry out regular and active offensive and defensive works while all guerrilla warfare is now conducted [Page 687] by their militia forces”. The Government now has a total strength of about 800,000 men, part of which must defend garrison points and lines of communications. When Government troops enter Communist-held areas, the “local people are all the forces of the rebellious force”. The campaign against the Communists is a political struggle and military strength is only a “means by which political achievement is covered”. When Government troops occupy an area, it will increase the burden of the troops in defending such an area. In order to save the country, we must:

(1)
improve the political organization, reorganize the Government and wipe out corruption;
(2)
carry out reconstruction south of the Yangtze, stabilize the economy, readjust official salaries and wages, especially of the military, limit private property to specific amounts with the residue to be given to the Government, and carry out conscription on an equal basis; and
(3)
train a new military force in preparation for an offensive next spring.

Philip D. Sprouse
  1. Not found attached to file copy.