Since the United States-Soviet Joint Commission meetings have twice ended in deadlock, and offer no real hope of success, the United Nations now seems to be the appropriate medium through which a Provisional Korean Government, functioning under a Four-Power Trusteeship, can be established. The United States may be confronted with a situation requiring decision concerning continued occupation in South Korea should the Soviet Union withdraw her occupation forces. This could reasonably be expected to occur when the Soviet-created puppet government and its armed forces are sufficiently well established to carry out Communist objectives without the presence of Soviet troops. The creation of an American controlled and officered Korean Scout Force, sufficient in strength to cope with the threat from the North, is required to prevent the forcible establishment of a Communist government after the United States and Soviet Union withdraw their occupation forces. PART V—RECOMMENDATIONS It is recommended: That the United States Government provide as early as practicable moral, advisory, and material support to China and South Korea in order to contribute to the early establishment of peace in the world in consonance with the enunciated principles of the United Nations, and concomitantly to protect United States strategic interests against militant forces which now threaten them. That United States policies and actions suggested in this report be thoroughly integrated by appropriate government agencies with other international commitments. It is recognized that any foreign assistance extended must avoid jeopardizing the American economy. CHINA That China be advised that the United States is favorably disposed to continue aid designated to protect China’s territorial integrity and to facilitate her recovery, under agreements to be negotiated by representatives of the two government, with the following stipulations: That China inform the United Nations promptly of her request to the United States for increasing material and advisory assistance. That China request the United Nations to take immediate action to bring about a cessation of hostilities in Manchuria and request that Manchuria be placed under a Five-Power Guardianship or, failing that, under a Trusteeship in accordance with the United Nations Charter. That China make effective use of her own resources in a program for economic reconstruction and initiate sound fiscal policies leading to reduction of budgetary deficits. That China give continuing evidence that the urgently required political and military reforms are being implemented. That China accept American advisors as responsible representatives of the United States Government in specified military and economic fields to assist China in utilizing United States aid in the manner for which it is intended. KOREA