support to the present reactionary government of China beyond carefully regulated and controlled
aid directed solely toward the miliatary prosecution of the war against Japan. To give diplomatic
or other support beyond this limit will encourage the Kuomintang in its present suicidal anti-Russian policy. It will convince the Chinnese Communists-who probably hold the key to control,
not only of the North China, but of Inner Mongolia and Manchuria as well-that we are on the
other side and that their only hope for survival lies with Russia. Finally, Russia will be led to
believe (if she does not already)that American aims run counter to hers, and that she must
therefore protect herself by any means availible: in other words, the extension of her direct power
or influencce.
     It is important, therefore, that the United States have the following aims in its dealings
with China:
 
          1. Avoid becoming involved in any way in Soviet relations: avoid all appearance of
unqualified diplomatic support to China, especially vis-avis Russia and limit American aid to
China to diretprosecution of the war against Japan.
 
     This may involve soft-peddlin of grandiose promises of post-war aid and economic
rehabilation-unless they are predicted on satisfactory reforms within China.
 
          2. Show a sympatethic interest in the Communists and liberal groups in China. try
to fit the Communists into the war against Japan.
 
     In doing so, we may promote Chinese unity and galvanize the lagging Chinese war effort.
the liberals, generally speaking, already consider that their hope lies in America. The Communists
from what little we know of them also are friendly toward America, believe that democracy must
be the next step in China, and take the view that economic collaboration with the United States is
the only hope for speedy post war rehabilitation and development. It is vital that we do not lose
ths goodwill and influence. 
 
          3. Use our tremendous and as yet unexploited influence with the Kuomintang to
promate internal Chinese unity on the only possible and lasting foundation of progressive reform.