CHIANG’S LAST STRONGHOLD

Ashburton Guardian, Volume 70, Issue 111, 23 February 1950, Page 5

CHIANG’S LAST STRONGHOLD

ISLAND OF FORMOSA END OF VAST EMPIRE (From William Parrot.—N.Z.P.A. Correspondent). HONG KONG. Formosa to-day remains as the last important stronghold of the Chinese Nationalist regime. This island of 14,000 square miles together with Hainan and a few smaller coastal islands is all that remains of the vast empire the Nationalists controlled at the end of World War 11.

Chiang Kai-shek, although officially retired, still remains at the helm, a lonely, embittered man. None can legally reappoint him to the presidency for there is no longer a National Assembly quorum available. The Generalissimo, however, is still “Tsungtsai” (leader) of the once pow : erful Kuomintang. Party and everything of import passes under his hand. Chiang Kai-shek spends most of his time in a former Japanese guest house at Tsaoshan, a hotspring resort on a hill overlooking Taipeh, Formosa’s capital. Sometimes he retires to Sum Moon Lake, a mountain spa eight hours motor drive south of Taipeh.

Lives Simply

The Generalissimo lives simply, eats plainly and works hard. Tending his needs are henchmen who have been with him 20 years. Protecting his person are tried bodyguards in their famous “Sun Yat-Sen” uniforms of dark blue. Working with him is a small army of advisers, many of whom have been ministers in former Nationalist Cabinets.

There is still evidence that the Kuomintang, even in its greatest peril, is divided within itself. Chiang Kai-shek, master of manoeuvre, is alleged to have removed Chen Cheng from the governorship of Formosa recently because he feared the latter’s growing power. • On the other hand, the appointment of Dr. K. C. Wu, popular former Shanghai mayor, was calculated to attract further American .aid. Formosa is unfertile ground upon which to build resistance to the Communists. Its 6,000,000 people, although mostly of Chinese stock, intensely hate the mainlanders. This stems from the orgy of exploitation in which Chinese officials and merchants indulged immediately after the war and the blood bath which followed when the Formosans spontaneously rebelled in February, 1947. The islanders are more docile now but the potential for revolt remains. They like the Communists no better, but the very fact of their hostility to the occupying Nationalists makes Communist infiltration easier. Collapse of the Nationalists from within is a very real possibility. Observers attach considerable importance to unconfirmed reports that Communists are already being smuggled into Formosa along the East Coast.

Mainland Greed

Mainland greed has ruined the island’s economy, although efforts have been made in recent months to stop the rot. Formosa’s factories have been either looted or allowed to run down, its crops are producing only a fraction of the output they did under efficient Japanese control. Thousands of Nationalist soldiers and refugees are consuming former rice and other surpluses. Inflation is rife. Foreign observers believe that if inflation continues and prices rise still further there may be more up-risings. All is not well among the Nationalist troops themselves. Most of them have been long absent from their homes on the mainland, and they want to return. Stirrings of discontent may not become serious while they continue to be paid, but Nationalist funds are said to be fast running out. It is estimated that Chiang Kai-shek’s treasury still con tains about 125,000,000 dollars but commitments are' heavy. Most of these funds are in gold bullion under Chiang’s direct control. Where these stocks are disposed is not publicly known but it is believed they are on the island. Observers believe there is enough left for two more months ai present rates of expenditure. These problems add heavily to Chiang Kai-shek’s outwardly main task of defending his last stronghold from Communist invasion.