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They have learned much from Russian technique under BORODIN, as both the Japanese and the British in CHINA have learned to their cost. They are past masters in peaceful penetration,

Fifth Column activities, the organization of political and economic pressure through strikes, incidents, boycotts, etc. HONGKONG and MALAYA and British commerce in CHINA have been

The Chinese Nationalism made painfully aware of their power. and Imperialism is so organized and directed through secret channels that no matter what internal weakness and political divisions may prevail for the moment we must reckon on nation-wide sentiment backing the Chinese policy of racial expansion which aims at long-term recovery of Chinese

influence in all regions where once they did enjoy political

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ascendancy, however tenuous and vague. They also aim at penetration into new fields. TIBET, BURMA, SIAM, INDO-CHINA and INDONESIA all come within the scope of their traditional ambition, not to mention their Western and Northern interests. Something is known of Kuomintang secret plans in INDO-CHINA and SIAM and of Kuomintang tentative schemes and propaganda

in MALAYA where the Chinese Communists are also Nationalists

in their own way. In the field of foreign policy we must be

prepared for a United Chinese Nationalist front, however loosely knit together under the banner of SUN YAT-SEN's political doctrines. When rid of the fear of Japanese Imperialism the

pulse of Chinese Nationalism may be expected to quicken. will neglect no means to further their ambitions and may even obtain reinforcements from certain pan-Asiatic Japanese elements.

They have already profited much indirectly from Japanese pan- Asiatic propaganda, the results of which will persist in Asia

long after the defeat of JAPAN.

*

They

Whatever the future of CHINA, should she develop

in unity under the Kuomintang, should she be torn by civil wars, or should the Kuomintang eventually be displaced by the

Communists backed by the U.S.S.R., we must be prepared for

friction with Chinese Nationalism so long as we remain a Power

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