Potentialities in the field of local autonomy are enhanced by the fact that the National Government has competitors. The Japanese have an opportunity which, instead of utilizing, they have done their best to destroy: conquest through prosperity. If they and their Chinese associates offered low prices, easy marketing, and fair taxes, in the place of arson, rape, thievery and bluster, their failure would become less certain. As a third side to the triangle of competitive power, the Communists and independent Left, while allied to the National Government, rival it in winning the loyalty of the population. Huge areas in Communist and guerrilla sections are sampling reform of a drastic and immediate kind: the lowering of taxes, the democratization of government, the abolition of usury. With the traitors on its Right and the Communists or guerrillas on its Left, the National Government does not abandon its chief politico-economic weapon by disregarding land and labor reform. None of the three parties has anything to gain by inaction. None has an interest which binds it to self-dooming reaction. THE COMMUNIST ZONE Three new governmental areas which are neither provinces nor local governments have come forth out of unification and war. Their relationship to Chungking is strange, perhaps unique. They are not states members of a federal union, since China is a unitary republic. They are not new regional commissions, creatures and extensions of the central government, because--whatever the theory--they were independently initiated. They are not allies, because they profess national unity. They are not rebellions, because they fight a common enemy, only occasionally coming into conflict with government troops. Yet they possess some of the features of each of the following: federal states, regional subgovernments, allied states, and rebellions. They cut across the pattern of the National Government. Two are governments; one is an army. The army and one government are largely Communist; the other government is a genuine United Front of the parties. Two are North Chinese; one is Central Chinese. But all three have this in common: they are Leftist, actively revolutionary; they are objects of patronizing suspicion to the central authorities, who are glad of the help but worry about its post-war cost.