Present American policy provides that, in view of the failure of the United States-Soviet Joint Commission to succeed in implementing the provisions of the Moscow Agreement regarding Korea, the matter be referred to the Four Powers for solution. It also provides that the matter be referred to the General Assembly of the United States in the event of the failure of the Four Powers to solve the Korean problem. This indicates that the United States will continue to seek, by consultation with the powers concerned, a solution of the problem, but a failure to reach an agreement on Korea in the United Nations will require that the United States make a decision regarding its future course in Korea: whether it shall withdraw or whether it shall organize a South Korean Government and under what conditions and whether it shall give economic and military aid to such a government. A continuation of present American policies will serve to give notice to the Soviet Union and to other nations in the Far East that the United States will not abandon Korea in the face of Soviet intransigence and that the United States will continue to insist upon the fulfillment of the Moscow Agreement regarding Korea. A continuation of present American policies will serve to deny to the Soviet Union direct or indirect control of all of Korea and prevent her free use of the entire nation as a military base of operations, including the ice-free ports in South Korea. APPENDIX F TO PART III—KOREA ECONOMIC South Korea has few resources except agricultural land. This area formerly obtained much of its anthracite, electric power, timber, fertilizer, and other chemical products from North Korea, and bituminous coal and food from Manchuria, but must now obtain these essential items (except electric power) as well as raw materials and repair parts for her industries, from other external sources. _Coal_—The whole of Korea, particularly South Korea, lacks coal No bituminous deposits are known and existing coal deposits are of a law-grade anthracite. The coal runs high in ash, and tends to disintegrate to powder. The largest producing mine in South Korea, constituting in fact 50 per cent of the production, is located at Sam Chok on the east coast. Production involves costly rail-sea-rail distribution. This coal can be and is being used in thermal plants by pulverizing and mixing with oil, but its use is costly and maintenance of boiler equipment is heavy. In any case, bituminous coal must be imported for the operation of the railways and most of the industries.