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NATIONAL ARCHIVES RECORDS SERVICE^' TOP SECRET relationships, and loyalty factors than with progressive ad- ministrative processes. There is increasing speculation of late that certain separatist movements opposing the General- issimo will take form in the very near future. In this re- gard considerable emphasis has been attached to the activi- ties of Marshal Li Chi-shen in Hong Kong, who was reported to have stated that he will form a provisional government in China proper imminently. It is difficult to credit Marshal Li Chi-shen with sufficient influence or capability of form- ing an effective provisional Government at this time. A1- - though it is evident that the personal position of the Gen- eralissimo is being severely contested at this time, and that factors of potential dissidence are present in the government, it is at the same time recognized that the elements of mili- tary and financial power, which represent political power, still remain at this time in the hands of the Generalissimo. g. Under the provisions of the China Aid Act of 1948, China will receive aid in the amount of $400,000,000 from the United States, $275,000,000 in economic assistance and $125,000,000, presumably, for military supplies. However, there is doubt that this program will bring about any real or permanent improvement in the situation. It may, however, serve to postpone total disintegration of the Government by improving the economic situation in the large city areas, NSC 22 - 5 - TOP SECRET

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    "ocrText": "NATIONAL\nARCHIVES\nRECORDS\nSERVICE^'\nTOP SECRET\nrelationships, and loyalty factors than with progressive ad-\nministrative processes. There is increasing speculation of\nlate that certain separatist movements opposing the General-\nissimo will take form in the very near future. In this re-\ngard considerable emphasis has been attached to the activi-\nties of Marshal Li Chi-shen in Hong Kong, who was reported to\nhave stated that he will form a provisional government in\nChina proper imminently. It is difficult to credit Marshal\nLi Chi-shen with sufficient influence or capability of form-\ning an effective provisional Government at this time. A1- -\nthough it is evident that the personal position of the Gen-\neralissimo is being severely contested at this time, and that\nfactors of potential dissidence are present in the government,\nit is at the same time recognized that the elements of mili-\ntary and financial power, which represent political power,\nstill remain at this time in the hands of the Generalissimo.\ng. Under the provisions of the China Aid Act of 1948,\nChina will receive aid in the amount of $400,000,000 from\nthe United States, $275,000,000 in economic assistance and\n$125,000,000, presumably, for military supplies. However,\nthere is doubt that this program will bring about any real\nor permanent improvement in the situation. It may, however,\nserve to postpone total disintegration of the Government by\nimproving the economic situation in the large city areas,\nNSC 22\n- 5 -\nTOP SECRET"
}