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    "title": "Report, Central Intelligence Agency, China, Situation Report 8",
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    "seq": 21,
    "pageIndex": 0,
    "type": "photo",
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    "ocrText": "SPORET\nmatic personnel on the basis of merit and ability, but filled posts with politicians ousted\nfrom office and protégés of powerful political figures.\n(a) Shanghai.\nChinese administration of the city of Shanghai has proved incapable\nof providing orderly government, as exemplified recently by two unruly episodes. A\ncrowd of disgruntled employees seized possession of the French consulate in the former\nFrench concession. An appeal by the owners of the premises for police intervention\nwas waived by the municipal authorities, on the grounds that no property damage\nor personal injury had ensued. In midsummer, a minor dispute at one of the city's\ntheatres developed into a bloody clash between municipal police and military gen-\ndarmerie. This led to a city-wide police strike, causing traffic confusion and endanger-\ning the persons and property of both Chinese and foreign residents. In this instance,\nthe root of the conflict lay in the overlapping authority of the civilian municipal gov-\nernment and the military administration still superimposed over the city.\n(b) Manchuria.\nThe attempt of the National Government to recover effective control\nover Manchuria has been unsuccessful, not only because of Communist military op-\nposition but also because of maladministration and graft. A dual system of control,\nunder Tu Yu-ming and Hsiung Shih-hui, the highest military and political authorities\nrespectively, resulted in jealous rivalry and continual controversy. In August 1947,\nafter more than a year of maladministration, the National Government finally moved\nto correct this situation by abolishing the Northeast military command and uniting\nboth military and civil administrations under the Chief-of-Staff Chen Cheng. This\ncorrective measure may have come too late, however, to repair the prestige of the Na-\ntional Government in Manchuria where, instead of drawing upon native Manchurians\nto fill government posts, the National Government brought in outsiders who have\ntreated the local population as inferiors and have exploited their positions for private\ngain. There has been in effect a sort of \"carpetbag rule,\" which has not only made\nthe National Government unpopular with the native population but has accelerated\neconomic deterioration in Manchuria.\n(c) Taiwan.\nThe record of the National Government in Taiwan (Formosa) is\neven more sordid. This island, which enjoyed a high degree of industrial development\nunder the Japanese, emerged from the war with little damage. Under Chinese ad-\nministration, however, the economy of Taiwan has disintegrated, and the Nationalist\nregime has become intensely unpopular. The Chinese governor, Chen Yi, who had\ncompiled an unsavory record during previous governorships of Fukien and Chekiang,\nplaced mainland Chinese in all desirable positions, retained some Japanese technicians\nas advisers, and awarded only very subordinate positions to Taiwanese. As a con-\nsequence, the native population found it had merely exchanged Japanese domination\nfor subjugation under mainland Chinese.\nWhereas Japanese exploitation of Taiwan had been orderly and\nefficient, Chinese administration has been characterized by lawlessness, economic decay,\nand industrial stagnation. Chinese officials, often unqualified for the posts they occupy,\nI-11\nSECRET"
}