711.93/11–1949

Memorandum by the Assistant Secretary of State for Far Eastern Affairs (Butterworth) to the Secretary of State

There is attached a memorandum for the President appraising and commenting on an undated, unsigned memorandum proposing aid to forces in China still opposing the Chinese Communists which the President handed to Mr. Webb on November 14 in your absence. The President requested that the memorandum be returned to him after it had been studied by the Department.

Although much of the information given in the memorandum which has been prepared for the President was covered in his discussion with the consultants and although the basic thesis of the unsigned memorandum has been further outmoded by recent events (particularly with the Communists now knocking at the doors of Chungking), it is recommended that you hand the memorandum to the President when you see him on November 21 in order that he may study it at his leisure.

[Page 591]
[Annex]

Draft of Memorandum for President Truman51

Subject: Proposed Aid to Forces Still Opposing the Chinese Communists

Reference is made to the attached undated, unsigned memorandum (Tab A) which you handed to Under Secretary Webb on November 14 in my absence. In accordance with your request we have studied this memorandum and have prepared for your information an appraisal of its contents.

The subject memorandum is well-reasoned argument for military assistance to the remaining organized resistance forces in China. This argument, however, must be rejected on the ground that it proceeds from an inadequate appraisal of the relevant facts. Certain questions of detail aside, the vital defect in the thesis argued is a gross overestimate of the present and potential strength of Chinese resistance forces relative to their Communist adversaries. The nature and extent of this overestimate may be summarized in the following points:

(1)
Contrary to the assertion in the subject memorandum, the strategic position of Nationalist forces on the Chinese mainland is today markedly worse than that of the Nationalist armies at the lowest ebb of their fortunes in their war against Japan. Communist advances beyond the Yellow River bend and into central Kweichow have overrun vital natural barriers essential to the defense of Szechwan Province. Japanese forces never penetrated those barriers.
(2)
Mainland areas under non-Communist control, contrary to the assumption made in the subject memorandum, are economically self-sufficient only in a technical, arithmetical sense. The grain surpluses of Szechwan could, it is true, offset the grain deficiencies in other non-Communist areas. But the recent loss of Kweiyang to the Communist forces has eliminated all possibility of transferring the Szechwan surplus to more needy provinces.
(3)
The data presented by the subject memorandum on the strength of anti-Communist military forces in China do not correspond with the most recent estimates of CIA. The subject memorandum contends that a “loyal” fighting force of 1,100,000 men now oppose the Chinese Communist armies. The most recent CIA estimate shows a total of only 676,000 of combat effectiveness. Moreover, many of these troops are ill-trained provincial levies. CIA, in a recent report concurred in by the other intelligence agencies, has stated that Nationalist forces are “characterized by low morale, poor leadership and loss of will to fight”.
(4)
On the question of the leadership of anti-Communist forces in China, the subject memorandum appears to be especially over-optimistic. Deficiencies in present leadership are recognized, but it is argued that U.S. aid can be used as a means of bringing new and [Page 592] more efficient men to posts of responsibility in the fight against Chinese Communism. The failure of repeated attempts in the past to achieve precisely this objective unfortunately argues against the probability that another such attempt will succeed at the present time. No reason exists for believing that Chiang Kai-shek is more willing than formerly to relinquish his position as predominant leader of the anti-Communist resistance forces in China. Nor is there reason to believe that the previously impotent and divided liberal elements in China will at this late date rally and assume effective control over the remnants of the Nationalist Government.
(5)
The brief treatment accorded the present strength of Chinese Communist forces in the subject memorandum may perhaps indicate a reluctance to face the realities of the present unpleasant situation in China. No convincing evidence can be found to support the contention that Chinese Communist forces are overextended or that their combat effectiveness has in any way been reduced. On the contrary, recent victories in Kwangtung have freed Communist armies for the conduct of a final offensive in overwhelming numerical strength against the scattered Nationalist remnants in southwest China. Because of their great superiority, moreover, the Chinese Communists are in a position to accelerate the speed of their conquest of the Chinese mainland, if U.S. aid to Nationalist remnants were to render such action necessary. The present disposition and strength of the opposing forces has been noted on the attached map of the military situation in China which has been revised to show the most recent information available (Tab B)52.

The policy recommendations of this subject memorandum must be weighed in the light of the relevant facts concerning the present situation in China. The memorandum argues that U.S. aid of a magnitude calculated to meet the current needs of existing anti-Communist resistance forces in China will either insure the indefinite survival of those forces or buy time needed by the U.S. to prevent the further expansion of Communism in Southeast Asia. Achievement of the first of these two results unfortunately appears to be entirely out of the question. The possibility that the aid program proposed in the subject memorandum would serve the interests of the U.S. by delaying the final Communist victory in China deserves more attention.

Of the non-Communist areas immediately adjacent to China the timing of a Chinese Communist victory would appear to be of critical importance only in the case of Indochina. In Indochina, a year’s respite from Communist pressure on the area’s northern border would perhaps render feasible measures to increase the life expectancy of the Bao Dai regime. It must be emphasized, however, that what is relevant in the case of Indochina is not the date of final liquidation of the last [Page 593] organized resistance in Kwangsi and Yunnan if it is to achieve its minimum objective of buying time for the prosecution of U.S. policy in Southeast Asia. These two provinces unfortunately are not suitable bases for large armed forces. As in the war against Japan, Szechwan is the key to continued resistance. Current successes of Communist armies in their drive against Szechwan, it must be noted, cast serious doubts on the feasibility of any program to prolong organized resistance on the Chinese mainland.

A further and equally valid reason for rejecting the argument in the subject memorandum is the political and military disunity presently existing in the Nationalist China. In this connection there is attached (Tab C) a telegram from our Embassy in Chungking53 which emphasizes (a) that hope no longer exists that progress toward political and military unity or reform can be achieved in southwest China; (b) that the military scene is one of retreat, defection, uncorrelated commands and mutual distrust; (c) that there is no prospect of healing the deep breach between the Generalissimo and the Li-Pai groups; and (d) that disintegration is apparent in all fields and is likely to increase in geometrical progression.

The general conclusion to be derived from an examination of the thesis presented in the subject memorandum is, therefore, that a program of U.S. aid to organized forces resisting the Chinese Communists would not only be unproductive of the desired results but might react to the disadvantage of the U.S. by reason of the absence of any valid assurances that such aid would not eventually fall into the hands of the Chinese Communists. It is of course obvious that failure of the U.S. in such a venture as that proposed would inevitably cause the further lowering of U.S. prestige which has already suffered seriously from the course of events in China.

  1. Apparently not handed to President Truman.
  2. Map not attached to file copy.
  3. See Cantel No. 1281, November 15, 11 a. m., from the Chargé in China, vol. viii, “Political and military situation in China”, chapter VIII.