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China, and, as it also affects North-West Burma, it would seem that we might offer China some assistance in the solution of the problem, as the Americans have already done.
117. The time for the development of a social service programme on a large scale has not yet come, but undoubtedly this will be one of the major problems that will confront China in the future, especially the question of health and disease prevention.
118. A great deal of voluntary work is being organised to give assistance to war orphans, wounded soldiers and refugees, and this is much encouraged by the Government. Wherever possible deep shelters are provided against bombing, which is constant everywhere. In Chungking, where the rocky and hilly nature of the town lends itself to the building of such shelters, the Government is still building deep dug-outs, and has now provided shelter for nearly 200,000 inhabitants. This protection, combined with a certain amount of evacuation into the surrounding country districts, does a great deal to maintain the morale and cheerfulness of the inhabitants. In other areas, such as Chengtu, where it is not possible to build deep shelters owing to the amount of water near the surface, very complete arrangements have been made to evacuate the inhabitants on notice of an air raid. Owing to the very excellent system of observation posts and the good secret service, notice of some hours is generally received of air raids, which makes the task of evacuation much easier.
Foreign Relations.
119. The present attitude of the Chinese is strongly nationalist, but, at the same time, they all recognise that they need the assistance of foreign Powers if they are to be successful in the present war. They turn naturally to the Western Democracies, Russia and the United States for assistance, though they do not have any objection to help from Germany. They regard, rightly I think, their interests as very largely identical with those of the Western Democracies, since they regard themselves as having the same libertarian ideals as are supposed to be enshrined in the political systems of Great Britain and France.
120. So far as Russia is concerned, she has provided more practical assistance for the Chinese than any other Power, with the possible exception of the United States. Large credits amounting to 150 million American dollars have been granted on very favourable terms indeed, and a barter arrangement is in operation which is of the most profound importance to China. It is because the stopping of wolfram ships going to Russia interferes with this arrangement that the Chinese feel so sore about it. So far, Russia has applied no political pressure whatsoever upon China, somewhat to the surprise of some of the Chinese, who have been afraid that there might be some interference with Chinese internal politics as the price of Russian assistance. Indeed, last summer, when Sun Fo went to Moscow, he was asked specifically by the Generalissimo to see Stalin about the relations between the Chinese Communists and the Central Government. Sun Fo then pointed out that Stalin would undoubtedly say that this was an internal matter for China and he could not interfere, and this is, in fact, the attitude that has been adopted by Russia throughout. There is, however, always a danger that, as the economic power of Russia increases in Western China, she will bring political pressure to bear in favour of the Chinese Communists. When I was in Moscow I asked Molotov about the possibility of the division of China into Russian and Japanese spheres of interest, and he stated that the Russian Government would never come to any such agreement with Japan, as they were determined to assist China to gain her independence and freedom. A new state of affairs is likely to arise when the war is concluded, as then, in all probability, there will arise a sharp internal political conflict between the Kuomintang and the Communists, and if Russian influence is then predominant from an economic point of view it may well be that the Russian Government will influence the turn of events by giving to, or withholding from, one or other party necessary supplies. It is, in my view, therefore important, if British interests are to be protected, that the maximum of economic assistance should be given by the British Government to China at the present time, so as to diminish the predominance of Russian help. The Chinese themselves, and particularly the Generalissimo, are anxious that they should avoid the danger of a too-exclusive economic association with Russia in the west, and, from this point of view as well as from that of