GROWING FEAR AMONG GOVERNMENT OFFICIALS

Chronicle (Levin), 1 March 1948, Page 5

GROWING FEAR AMONG GOVERNMENT OFFICIALS

(N.Z.P.A.-

— Reuter.

U.S. Military Aid ffiay Be Sought In Present Internal Strife

conuTiQKi)

Received Monday, 11.45 a.m. , NANKINQ, February 29. Nationalists defeats in Manchuria during the past week were not propagandist stunts to impress the United States with the gravity of the situation in China, said a well informed foreign military observer tonight. • The present grave situation had fully justified the apprehension among Government leaders.

Though the Government has yet to make a direct request to the United States for military aid, it is clear from the Chinese Press and unofficial spokesmen that the der mand is imminent. Events in Czechoslovakia" and Korea (China'sback door) this week, have convinced Chinese officialdom in Nanking that China is the next on the "Red list." Some of the finest American trained and equipped units in the Chinese Army are at present embroiled in the biggest military debacle of the civil wai* and the history of the Far East. While Chinese militarists are certain that these crack units can force their way out from Man-

churia, foreign observers are equally certain that the Nationalist Army is doomed. The coming f ew weeks will see the rise of another Communist regime, but it will not be blQodless. Events are moving fast in China today. The eeonomic situation has deteriorated sharply during the past week. Commodity prices have soared from 50 to 100 per cent., while the Chinese dollar's purcliasmg power has depreciated about 80 poi* cent. ®