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"NATIONAL ARCHIVES AND RECORDS SERVICE** You have to take in, of course, in that respect, and we hope you will give attention to this, the question of Chinese resources, Chinese possibilities of becoming an industrial power, and particularly the possibilities of doing that in conjunction with Russia. It has been my own thought that the Russians are perhaps the people least able to combine with the Chinese in developing the re- sources of China and producing anything which in a physical sense would be dangerous to us. The Japanese provide, it seems to us, far more the natural vorkshop for the Far East in general and for China, and whereas China is a competitor with Soviet Siberia for such things as the Soviet Govern- ment may have to give and I have heard Stalin express this same thought and I thin's with complete sincerity - Japan is not exactly in that position and Japan can supple- ment the mainland much more. This problem you will be facing with respect to China is for that reason, I think, inextricably intertwined with the problem of Japan, and I hope you won't feel under any compulsion to exclude Japan from your attention as we go along here. We have got there what seems to us to be a terrible dilemma on our hands and we need all the guidance we can get. The outcome of the recent war and the settle- ments that "ere made with respect to Northeast Asia do seem to have excluded the Japenese for the time being from any extensive participation on the mainland short of a war or of some dicker with the Russians which would enable the Russians to feel they can re-admit at least the Japanese technological and administrative and business skills into that area safely for themselves. On the other hand you have the terrific problem of how then the Japanese are going to ret along unless they again reopen some sort of empire toward the south. Clearly we hove got, if we are going to retain any hope of having healthy, stable civilization in Janan in this coming period, to achieve opening up of trade possibilities, commercial possibilities for Japan on a scale very far greater than anything Japan knew before. It is a formidable task. On the other hand, it seems to me absolutely inevit- able that we must ¹reep completely the maritime and air controls as a means of keeping control of the situction with respect to Japanese in all eventualities. The very fact that the Japanese face an appalling problem of economic adjustment in this coming period and are probably destined to go through a phase of Tather intense national frustration, which will incline them rather to the devices of despair than toward a good-natured sort of policy, - all that makes

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    "ocrText": "\"NATIONAL\nARCHIVES AND\nRECORDS\nSERVICE**\nYou have to take in, of course, in that respect, and\nwe hope you will give attention to this, the question of\nChinese resources, Chinese possibilities of becoming an\nindustrial power, and particularly the possibilities of\ndoing that in conjunction with Russia. It has been my own\nthought that the Russians are perhaps the people least\nable to combine with the Chinese in developing the re-\nsources of China and producing anything which in a physical\nsense would be dangerous to us. The Japanese provide, it\nseems to us, far more the natural vorkshop for the Far East\nin general and for China, and whereas China is a competitor\nwith Soviet Siberia for such things as the Soviet Govern-\nment may have to give and I have heard Stalin express\nthis same thought and I thin's with complete sincerity -\nJapan is not exactly in that position and Japan can supple-\nment the mainland much more.\nThis problem you will be facing with respect to China\nis for that reason, I think, inextricably intertwined with\nthe problem of Japan, and I hope you won't feel under any\ncompulsion to exclude Japan from your attention as we go\nalong here. We have got there what seems to us to be a\nterrible dilemma on our hands and we need all the guidance\nwe can get. The outcome of the recent war and the settle-\nments that \"ere made with respect to Northeast Asia do\nseem to have excluded the Japenese for the time being from\nany extensive participation on the mainland short of a war\nor of some dicker with the Russians which would enable the\nRussians to feel they can re-admit at least the Japanese\ntechnological and administrative and business skills into\nthat area safely for themselves.\nOn the other hand you have the terrific problem of\nhow then the Japanese are going to ret along unless they\nagain reopen some sort of empire toward the south. Clearly\nwe hove got, if we are going to retain any hope of having\nhealthy, stable civilization in Janan in this coming period,\nto achieve opening up of trade possibilities, commercial\npossibilities for Japan on a scale very far greater than\nanything Japan knew before. It is a formidable task.\nOn the other hand, it seems to me absolutely inevit-\nable that we must ¹reep completely the maritime and air\ncontrols as a means of keeping control of the situction\nwith respect to Japanese in all eventualities. The very\nfact that the Japanese face an appalling problem of economic\nadjustment in this coming period and are probably destined\nto go through a phase of Tather intense national frustration,\nwhich will incline them rather to the devices of despair\nthan toward a good-natured sort of policy, - all that\nmakes"
}