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UNCLASSIPIED
K-30
DOCUMENT J
Enclosure 2
(Continued)
the American Embassy in China, served as chairman
until his return to this country in the fall. In
order to carry out its function in the field,
Executive Headquarters formed a large number of
truce teams, each headed by one American officer,
one Chinese Government officer, and one Chinese
Communist officer. They proceeded to all danger
spots where fighting was going on or seemed
impending and saw to the implementation of the
truce terms, often under conditions imposing excep-
tional hardships and requiring courageous action.
The degree of cooperation attained between Gov-
ernment and Communist officers in the headquarters
and on the truce teams was a welcome proof that,
despite two decades of fighting, these two Chinese
groups could work together.
Events moved forward with equal promise on the
political front. On January 10, the Political Con-
sultative Conference began its sessions with repre-
sentatives of the Kuomintang or Government Party,
the Communist Party and several minor political
parties participating. Within three weeks of direct
discussion these groups had come to a series of
statesmanlike agreements on outstanding political
and military problems. The agreements provided for
an interim government of a coalition type with
representation of all parties, for revision of the
draft constitution along democratic lines prior to
its discussion and adoption by a national assembly,
and for reduction of the Government and Communist
armies and their eventual amalgamation into a small,
modernized, truly national army, responsible to a
civilian government.
In March General Marshall returned to this
country. He reported on the important step the
Chinese had made toward peace and unity in arriving
at these agreements. He also pointed out that
these agreements could not be satisfactorily imple-
mented and given substance unless China's economic
disintegration were checked and particularly unless
the transportation system could be put in working
order. Political unity could not be built on
economic chaos. This Government had already author-
ized certain minor credits to the Chinese Government
in an effort to meet emergency rehabilitation needs
UNCLASSIFIED
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"ocrText": "UNCLASSIPIED\nK-30\nDOCUMENT J\nEnclosure 2\n(Continued)\nthe American Embassy in China, served as chairman\nuntil his return to this country in the fall. In\norder to carry out its function in the field,\nExecutive Headquarters formed a large number of\ntruce teams, each headed by one American officer,\none Chinese Government officer, and one Chinese\nCommunist officer. They proceeded to all danger\nspots where fighting was going on or seemed\nimpending and saw to the implementation of the\ntruce terms, often under conditions imposing excep-\ntional hardships and requiring courageous action.\nThe degree of cooperation attained between Gov-\nernment and Communist officers in the headquarters\nand on the truce teams was a welcome proof that,\ndespite two decades of fighting, these two Chinese\ngroups could work together.\nEvents moved forward with equal promise on the\npolitical front. On January 10, the Political Con-\nsultative Conference began its sessions with repre-\nsentatives of the Kuomintang or Government Party,\nthe Communist Party and several minor political\nparties participating. Within three weeks of direct\ndiscussion these groups had come to a series of\nstatesmanlike agreements on outstanding political\nand military problems. The agreements provided for\nan interim government of a coalition type with\nrepresentation of all parties, for revision of the\ndraft constitution along democratic lines prior to\nits discussion and adoption by a national assembly,\nand for reduction of the Government and Communist\narmies and their eventual amalgamation into a small,\nmodernized, truly national army, responsible to a\ncivilian government.\nIn March General Marshall returned to this\ncountry. He reported on the important step the\nChinese had made toward peace and unity in arriving\nat these agreements. He also pointed out that\nthese agreements could not be satisfactorily imple-\nmented and given substance unless China's economic\ndisintegration were checked and particularly unless\nthe transportation system could be put in working\norder. Political unity could not be built on\neconomic chaos. This Government had already author-\nized certain minor credits to the Chinese Government\nin an effort to meet emergency rehabilitation needs\nUNCLASSIFIED"
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