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ECA-PAO 8.48 CABLEGRAM ECONOMIC COOPERATION ADMINISTRATION WASHINGTON, D.C. 6 ALCRET N Action: ECA Info: CORRECTED PAGES 1 & 2 UFAA for OF CHINESE = 11/28/48 11 p.m. CORRECTIONS UNDERSCORED FROM: Shanghai NOV 29 1948 Control 9166 OF TIME TO: ECA Administrator Rec''d November 27, 1948 4:14 a.m. NO: TOECA 499, November 26, 6 p.m. Supplementing TOECA 452. Because possibility consideration may be given dis. - continuing procurement and shipment commodities particularly food to areas now aided by ECA and to extent that Nationalist Govt loses control of such areas we make following comments. Emphasize our evaluations based from point of view our front-line operations China. 'MATIONAL ARCHIVES AND Questions relating industrial reconstruetion replace. RECORDS ment program involve somewhat different issues than SERVICE" commodity program and will be commented on later in separate cable. 1. One cannot fail to be impressed with general ef- fectiveness of Communist propaganda line to effect that aims of US in China are purely imperialistic, and that US has no real interest in welfare of Chinese people. This line is especially effective in country whose people quite naturally desperately weary of war. With many literate non-Communist Chinese, US aid has become increasingly blamed as enabling govt, which has lost confidence of majority its people, to continue civil war which has become increasingly unpopular with each Communist victory. 2. Political interpretation to us by Embassy members suggests it unlikely that Govt of China will change hands through constitutional processes. To our know- ledge there is little evidence President will voluntarily accept Communist terms for reorganization govt along lines inclusive his resignation and construction of Cabinet with Communist nembers. Nor does it seem probable that there will be coup d'etat by influential members present govt, which would overthrow Generalissimo DECLASSIFIED and bring E. O. 11652, Sec. (I) and S(D) or Depr. of State letter, Aug. 9, 1928 By NLT- H , NARS Dalle 7-20-76