That there is continuing evidence that they are taking effective steps to help themselves, or are firmly committed to do so. That such aid shall not jeopardize American economy and shall conform to an integrated program that involves other international commitments and contributes to the attainment of political, economic, and psychological objectives of the United States. PART II—CHINA POLITICAL Although the Chinese people are unanimous in their desire for peace at almost any cost, there seems to be no possibility of its realization under existing circumstances. On one side is the Kuomingtang, whose reactionary leadership, repression and corruption have caused a loss of popular faith in the government. On the other side, bound ideologically to the Soviet Union, are the Chinese Communists, whose eventual aim is admittedly a Communist state in China. Some reports indicate that Communist measures of land reform have gained for them the support of the majority of peasants in areas under their control, while others indicate that their ruthless tactics of land distribution and terrorism have alienated the majority of such peasants. They have, however, successfully organized many rural areas against the National Government. Moderate groups are caught between Kuomintang misrule and repression and ruthless Communist totalitarianism. Minority parties lack dynamic leadership and sizable following. Neither the moderates, many of whom are in the Kuomingtang, nor the minority parties are able to make their influence felt because of National Government repression. Existing provincial opposition leading to possible separatist movements would probably crystallize only if collapse of the government were imminent. Soviet actions, contrary to the letter and spirit of the Sino-Soviet treaty of 1945 and its related documents, have strengthened the Chinese Communist position in Manchuria, with political, economic and military repercussions on the National Government’s position both in Manchuria and in China proper, and have made more difficult peace and stability in China. The present trend points toward a gradual disintegration of the National Government’s control, with the ultimate possibility of a Communist-dominated China.