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NATIONAL ARCHIVES AND RECORDS SERVICE" TOP SECRET air supply service upon which the isolated Government concen- trations are totally dependent, and the local supply situa- tion would remain critical even if adequate supplies were available in rear areas. Isolation and confinement of Na- tionalist concentrations has forced the Government to dis- perse supplies and troop strength over widely scattered areas to such an extent that the Nationalists are incapable of con- centrating their efforts in a single area, and isolation of the concentrations precludes mutual support and coordinated effort. Meanwhile, the Communists are directing their ener- gies against strategic areas, the loss of which would ad- versely affect the Nationalists limited capabilities. In a number of instances the Nationalists have shown a lack of will to resist, but defection on an alarming scale has not been noted. f. In the political field the Generalissimo continues to be the balance of power among the various political cliques and elements striving for power in the Government. The ap- pointment of Wong Wen-hao as Premier indicates that the real administrative power will remain with the Presidency and that the Cabinet will function ineffectually. Dr. Wong Wen Hao is the symbol of reform but he is completely powerless at this time when the power structure of the Government is being more closely identified with military factions, personality NSC 22 - 4 - TOP SECRET

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    "ocrText": "NATIONAL\nARCHIVES AND\nRECORDS\nSERVICE\"\nTOP SECRET\nair supply service upon which the isolated Government concen-\ntrations are totally dependent, and the local supply situa-\ntion would remain critical even if adequate supplies were\navailable in rear areas. Isolation and confinement of Na-\ntionalist concentrations has forced the Government to dis-\nperse supplies and troop strength over widely scattered areas\nto such an extent that the Nationalists are incapable of con-\ncentrating their efforts in a single area, and isolation of\nthe concentrations precludes mutual support and coordinated\neffort. Meanwhile, the Communists are directing their ener-\ngies against strategic areas, the loss of which would ad-\nversely affect the Nationalists limited capabilities. In\na number of instances the Nationalists have shown a lack of\nwill to resist, but defection on an alarming scale has not\nbeen noted.\nf. In the political field the Generalissimo continues to\nbe the balance of power among the various political cliques\nand elements striving for power in the Government. The ap-\npointment of Wong Wen-hao as Premier indicates that the real\nadministrative power will remain with the Presidency and that\nthe Cabinet will function ineffectually. Dr. Wong Wen Hao is\nthe symbol of reform but he is completely powerless at this\ntime when the power structure of the Government is being more\nclosely identified with military factions, personality\nNSC 22\n- 4 -\nTOP SECRET"
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