Chapter XVII: 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

That the United States continue efforts for the early establishment of a Provisional Korean Government in consonance with the Moscow Agreement and meanwhile provide necessary support of the political, economic and military position of South Korea.