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corruption and reactionary intransigence. The drastic
reorganisation which would be needed to bring this
about might be imposed by the Americans as a
condition of the provision of large-scale financial
and economic aid which the United States alone are in a
position to supply, and which Chinese now admit is the
sole hope of economic salvation for their country.
10.
Moanwhile, evidence is not lacking that the
recent deterioration in the economic position in China,
the gradual weakening of the authority of the Chinese
Central Government, and the decline of morale in the
army, have caused the United States Government to
undertake a review of their China policy. As a first
step, a mission was sent to China in July under General
Wodemeyer, the war-time commander of the United States
forces in China, to investigate the position and furnish
a report. General Wodemoyer's military qualifications
make it reasonable to suppose that the military position
in China, and the ability of Chiang Kai-shok's army to
sustain, unaided, the Central Government's position in
the face of Communist pressure, would engage his
principal attention while in China, though
ho will undoubtedly at the same time
study the economic situation, which is largely bound up
with the military factor. Goneral Wodomeyer is due to complete his investigations towards the end
of August. It is not anticipated
that any decision can be reached by the United States
Government in regard to China until after his return.
Any programme for large-scale aid for China would
presumably require Congressional approval.