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J. 333305-M ON 0-State Galley 334 UNCORRECTED GALLEY PROOF would be advantages from a political and probably from a military point of view if an American officer should be given command of all Chinese and American forces in China. (c) Encouragement to the Chinese to Contribute their Marimum Effort in the War Internal disunity, economic instability (including severe inflation), lack of supplies and general war weariness are greatly impeding China's war effort. It is this Government's policy to support and encourage all measures designed to resolve these difficulties. Through the exercise of friendly good offices our Ambassador is endeavoring to promote greater internal unity, including the reconciliation of the fundamental differences between the Chungking Government and the Communist group. The establishment of a Chinese WPB as a result of Mr. Donald Nelson's mission should result in increased production of certain types of military equipment and in an improve- ment in the problem of supply. Arrangements are being completed for the shipment of increased quantities of Lend-Lease materials into China, including spare parts for industrial equipment, raw materials, several thousand heavy trucks, a complete oil refining unit and a substantial number of small power plants. Inflation in China, which has been a serious obstacle to maximum war effort, may be partially checked by such measures and by the shipment into China of small quantities of consumer goods. This Government believes that China can and should make every effort to collaborate with us to the full extent of her capabilities in the vigorous prosecution of the war. We consider that the Generalis- simo should continue earnestly to seek to bring about internal unity, that he should take immediate measures adequately to feed and clothe his troops and that he should strengthen national morale and increase popular participation in the war by the introduction of fundamental goverpmental reforms. Executive Secretariat Files Briefing Book Paper OUTLINE OF LONG-RANGE OBJECTIVES AND POLICIES OF THE UNITED STATES WITH RESPECT TO CHINA SUMMARY The American Government's long-range policy with respect to China is based on the belief that the need for China to be a principal stabilizing factor in the Far East is a fundamental requirement for peace and security in that area. Our policy is accordingly directed toward the following objectives: 1. Political: A strong, stable and united China with a government representative of the wishes of the Chinese people. 2. Economic: The development of an integrated and well-balanced Chinese economy and a fuller flow of trade between China and other countries. 3. Cultural: Cultural and scientific cooperation with China as a basis for common understanding and progress.

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    "ocrText": "J. 333305-M ON 0-State\nGalley 334\nUNCORRECTED GALLEY PROOF\nwould be advantages from a political and probably from a military\npoint of view if an American officer should be given command of all\nChinese and American forces in China.\n(c) Encouragement to the Chinese to Contribute their Marimum Effort\nin the War\nInternal disunity, economic instability (including severe inflation),\nlack of supplies and general war weariness are greatly impeding\nChina's war effort. It is this Government's policy to support and\nencourage all measures designed to resolve these difficulties. Through\nthe exercise of friendly good offices our Ambassador is endeavoring to\npromote greater internal unity, including the reconciliation of the\nfundamental differences between the Chungking Government and\nthe Communist group. The establishment of a Chinese WPB as a\nresult of Mr. Donald Nelson's mission should result in increased\nproduction of certain types of military equipment and in an improve-\nment in the problem of supply. Arrangements are being completed\nfor the shipment of increased quantities of Lend-Lease materials into\nChina, including spare parts for industrial equipment, raw materials,\nseveral thousand heavy trucks, a complete oil refining unit and\na\nsubstantial number of small power plants. Inflation in China, which\nhas been a serious obstacle to maximum war effort, may be partially\nchecked by such measures and by the shipment into China of small\nquantities of consumer goods.\nThis Government believes that China can and should make every\neffort to collaborate with us to the full extent of her capabilities in\nthe vigorous prosecution of the war. We consider that the Generalis-\nsimo should continue earnestly to seek to bring about internal unity,\nthat he should take immediate measures adequately to feed and\nclothe his troops and that he should strengthen national morale and\nincrease popular participation in the war by the introduction of\nfundamental goverpmental reforms.\nExecutive Secretariat Files\nBriefing Book Paper\nOUTLINE OF LONG-RANGE OBJECTIVES AND POLICIES OF THE UNITED\nSTATES WITH RESPECT TO CHINA\nSUMMARY\nThe American Government's long-range policy with respect to\nChina is based on the belief that the need for China to be a principal\nstabilizing factor in the Far East is a fundamental requirement for\npeace and security in that area. Our policy is accordingly directed\ntoward the following objectives:\n1. Political: A strong, stable and united China with a government\nrepresentative of the wishes of the Chinese people.\n2. Economic: The development of an integrated and well-balanced\nChinese economy and a fuller flow of trade between China and other\ncountries.\n3. Cultural: Cultural and scientific cooperation with China as a\nbasis for common understanding and progress."
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