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UNCLASSIFIED K-35 DOCUMENT J Enclosure 2 (Continued) was essential to prevent the collapse of this indus- - trial area. Our Marines were withdrawn from this duty last September. Other, units of our forces were engaged in searching for the bodies or graves of American soldiers who had died fighting the Japanese in China. Still others were required to guard United States installations and stores of equipment, and to process these for return to this country or sale as surplus property. At peak strength a year ago we had some 113,000 soldiers, sailors, and marines in China. Today this number is being reduced to less than 12,000, includ- ing some 2,000 directly concerned with the opera- tions of Executive Headquarters, and will be further reduced to the number required to supply and secure the American personnel of Executive Headquarters and the air field and stores at Tsingtao. Thus during the past year we have successfully assisted in the repatriation of the Japanese and have subsequéntly been able to bring most of our; own treops home. We have afforded appropriate assist. - ance in the reoccupation of the country from the Japanese. We have undertaken some emergency measures of economic assistance to prevent the collapse of China's economy and have liquidated our own wartime financial account with China. It is a matter of deep regret that China has not yet been able to achieve unity by peaceful methods. Because he knows how serious the problem is, and how important it is to reach a solution, General Marshall has remained at his post even though active negotiations have been broken off by the Communist Party. We are ready to help China as she moves toward peace and genuine democratic government. The views expressed a year ago by this Govern- ment are valid today. The plan for political unifica- tion agreed to last February is sound. The plan for military unification of last February has been made difficult of implementation by the progress of the fighting since last April, but the general prin- ciples involved are fundamentally sound. UNGLASSIFIED,

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    "ocrText": "UNCLASSIFIED\nK-35\nDOCUMENT J\nEnclosure 2\n(Continued)\nwas essential to prevent the collapse of this indus- -\ntrial area. Our Marines were withdrawn from this\nduty last September. Other, units of our forces\nwere engaged in searching for the bodies or graves\nof American soldiers who had died fighting the\nJapanese in China. Still others were required to\nguard United States installations and stores of\nequipment, and to process these for return to this\ncountry or sale as surplus property.\nAt peak strength a year ago we had some 113,000\nsoldiers, sailors, and marines in China. Today this\nnumber is being reduced to less than 12,000, includ-\ning some 2,000 directly concerned with the opera-\ntions of Executive Headquarters, and will be further\nreduced to the number required to supply and secure\nthe American personnel of Executive Headquarters\nand the air field and stores at Tsingtao.\nThus during the past year we have successfully\nassisted in the repatriation of the Japanese and have\nsubsequéntly been able to bring most of our; own\ntreops home. We have afforded appropriate assist. -\nance in the reoccupation of the country from the\nJapanese. We have undertaken some emergency measures\nof economic assistance to prevent the collapse of\nChina's economy and have liquidated our own wartime\nfinancial account with China.\nIt is a matter of deep regret that China has\nnot yet been able to achieve unity by peaceful\nmethods. Because he knows how serious the problem\nis, and how important it is to reach a solution,\nGeneral Marshall has remained at his post even\nthough active negotiations have been broken off by\nthe Communist Party. We are ready to help China\nas she moves toward peace and genuine democratic\ngovernment.\nThe views expressed a year ago by this Govern-\nment are valid today. The plan for political unifica-\ntion agreed to last February is sound. The plan for\nmilitary unification of last February has been made\ndifficult of implementation by the progress of the\nfighting since last April, but the general prin-\nciples involved are fundamentally sound.\nUNGLASSIFIED,"
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