AMERICAN ECONOMIC AID TO CHINA

Press, Volume LXXXIV, Issue 25677, 14 December 1948, Page 5

AMERICAN ECONOMIC AID TO CHINA

Complete Cessation Under Communist Regime

POSSIBLE ASSISTANCE FOR “TRUE COALITION”

(N.Z. Press Association— Copyright)

(ReC A.i 2 T 4 T 5 •! Tl , ■„ SHANGHAI, Dec. 13. All United States aid to China would be stonnert if tU Communists took over the control qf the country, sfid MrVaul Hoffman, head of the United States 77 a 1 .. au Administration, at a press conference in Shanghai to?da™ He added that the United States Government would be willing to accept a recommendation made by the EC A to continue economic aid if the present Chinese regime wtre replaced by a true coalition representing the Chinese people. He did “lf d the h rn ! . < iH“ mU ? IStS f f Om such a coalit -ion, but he L f the coa,lt *? n obyiously were completely Communistic the chances are that th'e United States Government would b^t f XTbi: o use nU oV ng tbp el *i ef i. ° Ur PreSCnt tesk » “ Xe best possible use of the dollars remaining under the current aid programme and to ensure that proposals for any future programme we may present to Congress will be as sound and well considered as possible.” aim

„ W *‘' to Nankin g to-morrow to confer with Marshal Chiang Kai-shek before returning to the United States. About 1000 United States Marines will leave Tsingtao for Shanghai this week. They will land only if American lives are endangered should the Chinese Government fall

BATTLE 45 MILES FROM NANKING

The Chinese Communists to-day broke through the Government defences south of Lake Hungtze, in eastern Anhwei, and attacked the railwav between Pukow and Pengpu, only 45 miles north-west of Nanking. The Nationalists are rushing reinforcements to the area, where fierce fighting is going on. The Communists late in the afternoon were still holding their positions astride the line and all rail traffic between Pengpu and Pukow was suspended for the second time in four days. The Nationalist air force is making 50 flights daily tci drop supplies to the encircled Nationalist armies from Suchow. now stationary in the Kiang-su-Anhwei-Honan border region. Nationalist relief columns from the

south-east are claimed to be within 20 miles of the encircled armies. A message from Tientsin reports that the Nationalist garrison was withdrawn from Tongshan, a mining centre, to-day and that the Communists moved in. About 20 Britons, including three wives and a few hospital nurses, were among the mining administration staff at Tongshan. Reuter’s correspondent in Shanghai says that the Chinese Prime Minister (Dr. Sun Fo) has returned to Nanking from Shanghai after failing io form a new Cabinet. China’s political leaders are reported to be unable to agree whether the policy of the new Government should be to seek a settlement with the Communists or to place the nation on a total war basis for an intensified anti-Communist campaign.