A five-year rehabilitation program starting in July, 1948, and requiring United States financing at a cost of $647 million, has been proposed by the Military Government. A review of preliminary estimates indicates that the proposed annual rehabilitation cost would be substantially greater than the relief program of $137 million which was tentatively approved for fiscal 1948, but later reduced to $92.7 million. These preliminary estimates of costs and the merits of individual projects need careful review. It is not considered feasible to make South Korea self-sustaining. If the United States elects to remain in South Korea, support of that area should be on a relief basis. SOCIAL—CULTURAL Since the Japanese were expelled, the Korean people have vehemently and unceasingly pressed for restoration of their ancient culture. There is particular zeal for public education. Individual and collective efforts to reduce illiteracy have produced results meeting the praise of American Military Government officials. There will be materially better results when there are more school buildings, more trained teachers and advisors, and many more textbooks in the Korean language. Current American activities aim at adult visual education on a modest but reasonably effective scale. South Korea’s health and public-welfare work are at present fully as effective as under Japanese administration and considerably more so in the prevention of serious diseases. Even the Koreans’ eagerness for improvement cannot immediately overcome the unquestionable need for large funds for social betterment. MILITARY