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how much wealth did the Chiang family got


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#16 ahxiang

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Posted 20 August 2005 - 11:47 PM

LEND-LEASE - conclusion that there was not much for Chinese to embezzle during WWII.


On July 24th 1941, Roosevelt ordered an economic embargo on Japan, and on Aug 1st, further ordered an oil embargo on Japan.

In this year, Soong Ai-ling's "seven star company" profited from exchange rate fluctuations.

http://64.233.167.10...lient=firefox-a
Eventually becomes $50 billion dollars in lend-lease during the war to many countries: 60% to UK, 20% USSR, 20% France, China, others. 30Nov40. Sat. United States lends [pre-lend-lease] $50 million to China for currency stabilization and grants an additional $50 million credit for purchase of supplies.

http://64.233.161.10...w... wwii&hl=en
Magruder acquiesced, and eventually large amounts of lend-lease weapons and equipment, originally earmarked for Nationalist China, went to the British for use in the defense of Burma. With Rangoon threatened, Magruder ordered the destruction of all lend-lease stocks in an effort to deny them to the invading Japanese. As the Japanese approached, there had been frantic activity to move as much materiel as possible north to the Burma Road, but it was still necessary to destroy more than 900 trucks in various stages of assembly, 5,000 tires, 1,000 blankets and sheets, and more than a ton of miscellaneous items. Magruder transferred much materiel to the British forces, including 300 British-made Bren guns with 3 million rounds of ammunition, 1,000 machine guns with 180,000 rounds of ammunition, 260 jeeps, 683 trucks, and 100 field telephones. In spite of the destruction and transfer to the British, however, over 19,000 tons of lend-lease materiel remained in Rangoon when it fell to the Japanese on 8 March.

http://64.233.161.10...S... wwii&hl=en
Furthermore, the Lend-Lease program was used to obtain the aircraft required by the AVG."

Stilwell himself acknowledged that China did not get the needed aid from Lend-Lease. On pages 180-181 of FF Liu's " A Military History of Modern China", Liu pointed out that "The British influence was strong in the ranks of the combined chiefs of staff, however, and Chinese stockpiles rapidly dimished while material was reallocated to other recipients. When aircraft originally intended for the Chinese theater was reallocated by Washington, Stilwell complained, 'Now what can I say to G-mo [Chiang Kai-shek]?? We fail in all commitments and blithely tell him to just carry on, old top'."

To build roads and airfields, China issued unbacked bonds. ( In Nov 1944, Kong Xiangxi, at Chiang Kai-shek's order, demanded with Morgenthau that US pay back the 0.6 billion
US dollar cost China incurred in building the airfields for American bombers. Morgenthau, knowing black market rate of 120 against
i US dollar, refused to pay China. Roosevelt agreed to pay 0.1 billion US dollars in cash)

The huge loss of Chinese forces in Kumon-Gaoligang Mountains had yielded only one good thing: Sun Liren, against Chiang Kai-shek and Du Yuming, retreated to India where British realized that Chinese could be used for defending India. Stilwell thought about making Sun Liren's 38th Division into his private army. Expedetion army was rebuilt into New 1st Corps. Stilwell agreed to equip Chinese armies with American weapons. Chiang Kai-shek's future crack force army, as commonly known, were the remnants of Stilwell's X-force from India and Y-force from Yunnan-Guangxi provinces. However, Stilwell had tried to take over the Chinese force by implanting 200 American officers, attempted assassination of Chiang during a planned Ramgrah inspection, wasted Y-force needlessly in attacking Japanese positions on perpendicular hills, refused to reroute the Y-force to China during Japnese Ichigo Campaign, and fought Chiang Kai-shek with Marshal acquiesce. If you want to know how much US did for China, I would say that's basically all before Stilwell was recalled in Oct 1944. Stilwell had no interest in giving aid to China other than direct control over Chinese army. When China was attacked by Japan in No. 1 Campaign, Stilwell refused to direct the X-force against Japanese from south or allow the Y-force to back off from Burma border.

Wedemeyer continued on with Stilwell training by promising to equip 39 Chinese divisions, with actual numbers trained uncertain. Stilwell controlled the Lend-Lease program, and refused to even replenish Channault's Flying Tiger airforce, not to mention Chiang Kai-shek. Wedemeyer continued Stilwell line in controlling the Lend-Lease program direct. On page 193 of FF Liu's book, Liu stated that "The Chinese even agreed to Wedemeyer's insistence that Americans supervise the purchase of food locally when paid for with lend-lease funds.". Wedeymeyer wanted to feed Chinese army with better nutrition. This shows that China had no control over the lend-lease materials or funds, with the conclusion that there was not much for Chinese to embezzle during WWII.

The lend-lease amounts were merely US$26 million (1941, mostly squandered in Burma in the aftermath of the Japanese invasion), US$100 million (1942), US$49 million (1943), and US$53 million (1944).

Edited by ahxiang, 26 June 2009 - 12:32 AM.

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#17 ahxiang

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Posted 20 August 2005 - 11:57 PM

How Kong & Song Families Make the Money? - part II - Kong had accumulated over 1 billion US dollars for Chiang after eight years of resistance war

After the Pacific War, Japanese intruded into Shanghai's extraterritory, opened a new reserve bank, printed "puppet money", exchanged into "legalized currency" with "puppet money", and then exchanged into international currency with "legalized currency". Japanese then reversed the prior policy of maintaining "legalized currency" to deliberately devalue "legalized currency" for sake of grabbing more purchasing power of Chinese commodities with Japanese "military currency" [i.e., "jun piao"]. In March 1941, Japanese and Chinese collaborators launched counter-assassinations against Chinese bank employees in French Concession and International Settlement of Shanghai. After one month bloody killings, a truce was brokered by Du Yusheng, yielding to Japanese puppet money circulation together with Chinese "legalized currency".

On March 21st, 1942, Song Ziwen successfully obtained an American loan of 0.5 billion. Kong Xiangxi immediately made arrangement for printing two batches of 0.1 billion Chinese government bonds, including 0.1 billion US$-denominated debts. From 1938 to 1942, Kong Xiangxi issued bonds valued at 15.192 billion "legalized currency".

Communist-published records claimed that in Oct 1943, Kong Xiangxi and his crony were personally involved in controlling the remnants of one batch of the 0.1 billion US$ denominated Chinese bonds; that when China's "legalized currency" devalued against US$, Kong Xiangxi secretly stopped the issuance of about 50 million US$ equivalent of the original 0.1 billion US$-denominated debts; and that Kong XIangxi's crony Luu Xian took charge of swallowing the debts on behalf of Kong Xiangxi and the staff of the state vault bureau of the Central Bank. Numerous communist-published books claimed that total profit could reach 2.647 billion "legalized currency". - The black market exchange rate was like US$1 = Chinese "legalized currency" 250 yuan,
but official exchange rate was pegged at 1 against 20.

According to Arthur Young, the distribution of the 0.1 billion US$-denominated debts was mismanaged in that not a deadline was set, and hence there was no incetive for subscription among rich Chinese. As to the corruption charge, a crime of that magnitutude could not have happened without divulsion to the public. After reading through most of foreign currency and bond manipulation charges, I figured that none of the operation could have been conducted by one or a few cronies, but a collective action by the government organs involved.

Communist-published records further claimed that in Nov 1943, with possibly Stilwell acquiesce and encouragement, 600 Chinese officers plotted to assassinate Chiang Kai-shek on Dec 12th, prior to Cairo Conference. Kong Xiangxi could be implicated in the plot. Long Yun as well. 16 generals [????? whom??? ] were executed upon Chiang return from Egypt. [Communist records claimed that assassination was under Stilwell order, code-named "Blue Whale", for the time period of March 1944 when Chiang kai-shek was expected to inspect on CHinese army in India.]

At Cairo Conference, Roosevelt promised to loan China 1 billion US dollars, but changed mind afterwards. [Zheng Langping, on page 33 of Everlasting Glory], also mentioned this.] Chiang Kai-shek then sought for reimbursement of costs in building roads and airfields for Americans.

"Political studies faction" [Da Gong Bao; Ta Kung Pao - controlled by undercover communists] and CC Clique [Zhong Yang Ri Bao] attacked Kong Xiangxi. With Chiang Kai-shek authorization, Chongqing city raided Kong family's warehouse where they hoarded flour, medicine, cloth valued at 40 million Chinese yuan. Note 40 million Chinese yuan could not be considered a significant amount for some comemrcial operation in a hyperinflation environment. Central Statistics & Investigation concocted accusations to have Kong Xiangxi's crony, Gao Bingfang arrested. To save Gao from death sentence, Kong gave away control of some posts at finance ministry and legislative house.

In June of 1944, Soong Mei-ling and Soong Ai-ling left for Brazil where the Soong family was accused to having purchased properties, and other assets. Kong Xiangxi, for his implication in plot against Chiang Kai-shek, was sent away to USA as well - per communist-published records. The truth was that Kung went to attend the Bretton Woods Conference, together with his secretary, i.e., COmintern agent Ji Chaoding. Kong spent next 12 months overseas. In Nov 1944, Kong Xiangxi, at Chiang Kai-shek's order, demanded with Morgenthau that US pay back the 0.6 billion US dollar cost China incurred in building the airfields for American bombers. Morgenthau, knowing black market rate of 120 against i US dollar, refused to pay China. Roosevelt agreed to pay 0.1 billion US dollars in cash, but complained to Chiang Kai-shek for firing the "corrupt" Kong XIangxi from the finance minister post. Puppet government in Nanking was surprised that Chiang fired Kong under the pressure of Americans and Chinese communists

Kong's daughter claimed that Kong had accumulated over 1 billion US dollars [including the value of gold and silver] for Chiang after eight years of resistance war. Seagrave claimed a total of 0.9B USD equivalent and 6M ounces of gold which were all "from American taxpayers" [????? Chinese coolie work for free, and Chinese war deaths in vain???]. The 1 billion certainly included the 0.1 billion Roosevelt paid to China for coolie labor in building airfields. (Note White men are afraid of Chinese after noting that millions of peasants could peel off the hilltops with hoes, dustpans and shoulder-poles. Important: They don't fear the sheer number of Chinese, but the tenacity of Chinese coolie.)

Edited by ahxiang, 01 July 2009 - 11:40 PM.

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#18 ahxiang

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Posted 21 August 2005 - 12:01 AM

How Kong & Song Families Make the Money? - part III


After Kong Xiangxi lost his finance minister post, Yu Hongjun temporarily took over the job. Kong's son bought a house on Long Island. Song Ziwen returned to China. Song Ziwen still had his brother Song Ziliang control the US
and UN aid programs inside US. We could not tell how much TV Soong had spent the 0.9 billion on the war efforts. It is not likely that TV Soong had directly embezzled the 0.9 billion.

Seagrave accused TV Soong of halving Chiang's 0.9 billion reserve within two years. In Nov 1947, US media accused Soong of having 0.1 billion deposits in US and Switserland.

In China, Chiang Kai-shek was fighting an exhaustive war against the communists. US, from 1946 to 1947, had a de facto arms embargo against China. Marshal strictly implemented the embargo policy to force Chiang Kai-shek into peace talks with communists. This is so-called "stick and carrot" policy. (Nancy Tucker also pointed out the embargo.)

The UN goods came to China via the docks and wharfs controlled by the Kong-Song families and the gangster-background families like Du Yusheng. In Shanghai, Jiang Jingguo launched a sweeping campaign against the profiteerers, including Du Weiping [hoarding 60 million yuan worthy of goods]. Possibly, Du directed Jiang Jingguo to raid Kong Lingkan's warehouse where a lot of UN goods were found. Mme Chiang Kai-shek personally flew to Shanghai to rescue Kong Lingkan and then sent him overseas

Communist records claimed that Kong Xiangxi and his son were implicated in supporting Tom Dewey's presidential candidacy against Truman. American media ridiculed the KOngs as tycoons with 0.5 billion US dollars against Truman. US media accused Mme Kong Xiangxi of possessing the most deposits in US banks in 1939. In May 1950, US media accused Kong-Song families of having 0.5 billion US dollars in US banks. In March 1951, US media accused the two families of having as much as 0.85 billion US dollars. The two never disputed any accusation. Kong Lingjie (Louis Kung), another son of Kong XIangxi, did marry a US movie star and controlled the Western Oil Development Co in Houston. However, he probably developed the business without family help. Chiang invited Kong-Song back to Taiwan. Kung lived in Taiwan for over three years.

Wellington Koo memoirs pointed out that the most Kung family had ever done in US would be Mme HH Kung's wish to establish a award scholarship for essays relating to China's civil wars in a women's club. Mme Chiang Kai-shek had paid out of her private accounts for some financial expenses incurred by some Chinese delegation in US. Other than the two incidents, there was no trace that Republican China was ever involved in bribing the US Congress, at least not before 1954. This is especially true after the only hired American defected to the anti-China side in 1948 over contract renewal issue.

Edited by ahxiang, 01 July 2009 - 11:45 PM.

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#19 ahxiang

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Posted 21 August 2005 - 12:35 AM

Final Accusations

Chiang Kai-shek, for defeating Li Zongren's vice-presidency, had transported China's gold to Taiwan. The total amounts, per his attache account, would be:

2,600,000 ounces - Taipei
900,000 ounces - Amoy
380,000 ounces - USA
200,000 ounces - Shanghai
[Another 400,000 ounces as turnover funds in Shanghai]

After 4 years of civil wars, the Chinese government was in collapse economically. Once they arrived in Taiwan, they had to consume 280,000 ounces gold per month to take care of 2 million soldiers, government staff and refugees. This is a tragedy for Chinese on both sides of the Straits. With millions killed on the battlefield, still more people continued to suffer. -- Taiwan government should pay back to mainland Chinese for the GOLD, at least to the families of whoever got implicated, killed and persecuted by the communist government after 1949.

Communist documents claimed that US government had ratified a "secret US-China military agreement" in June 1946, agreeing to supply 1000 planes, 7000 guns; on July 16th, gave 271 warships to KMT government; and on Aug 31st, sold 0.8 billion US dollar equivalent of war surplus materials to China.

We have to bear in mind that Marshal, and Truman, had an arms embargo against China from 1946 to 1947. Marshal had pressured Chiang Kai-shek into two separate truces by means of "carrots and stick" policy, i..e, 1st truce order on Jan 10th 1946 [excluding Manchuria], and 2nd truce order on June 6th 1946 [including Manchuria]. Here, we could tell whether George Marshal was a closet communist or not. Marshal gave the communists a respite when Sun Liren defeated Lin Biao in manchuria by chasing across the Sungari River. Sun Liren left a battalion on the northern bank of Sungari, which held out with KMT flag till well after Changchun's surrender.

We would dispute communist claim as to the US offer. Why? Because Marshal was said to have gone into a rage when lobbying for an Europe-equivalent "Marshal Plan" for China inside of US. Upon hearing of the renewed fightings between KMT and CCP, Marshal flew back to China till he was recalled in Jan 1947 by Truman.

The remnant of Lend-Lease program was probably the only US flow to China after the outbreak of 1945-1949 civil war. The outdated ships etc were released. When KMT spy Gu Zhenglun fled Shanghai in 1949, he went to Huangpu River on a sampan or boat to intercept such an American ship.

The Aug 1949, 1000 page US White paper published by D.G. Acheson claimed that US had given to China US$2 billion. I could not tell whether this included the UNRRA goods that had was said to be 685M USD by Seagrave and 500M by Kerr. US aid was more likely in the form of Lend-Lease. It was in 1941 given to British for defending Burma; It was destroyed when Japanese closed in to Rangoon; It was used by Stilwell for equipping X-force and Y-force; It was MOSTLY used for paving the Ledo-Burma Highway that did not open till 1945; It was for funding the Hump Course airlift that went exclusively to Chennault's airforce but still failed to fuel the planes - because of Stilwell trickery against Chennault not because the American pilots' laziness; and it was finaly used for shipping 1-2 million Japanese home from 1945 to 1946.

Mme Song Mei-ling spent 1-2 years in US in vain. Why? The full US government was permeated with Comintern spies. US vice president, presidential assistant and candidate, and etc were all communists. Don't say I made it up. Majority of American academic don't believe it to be true till after the USSR archives were released. In another word, McCarthy was at least 95% correct about his roster of communist agents.

Alternatively, Li Dongfang mentioned something interesting by stating that there was a rumor that "TRuman, under the pressure of the COngress, had agreed to give China 0.4 billion US dollars, with 0.125 billion allowed on military spending. But 16 million worthy of weapons, having arrived in Peking, were found to be unusable ... Hence, Fu Zuoyi decided to surrnder to the communists with Peking city"

Fu Zuoyi did procrastinate with communist negotiators for close to one year. One of Fu Zuoyi's claims would be expectation that Americans would be involved in China. And, when Chiang Kai-shek declared a blockade of Chinese coasts, hundreds of thousands of American-made mines lacked fuse, which was contrived to be a deliberate American action.

Whether there was any truth to the above-rumored US aid from Truman, one thing widely reported in US media was that Truman had hinted that Song-Kong families could donate 0.3 billion US dollars to Chiang Kai-shek. Truman abandoned China, and China supported the Republican presidential candidacy in 1947-1948, Tom Dooey.

After half a century, Chiang kai-shek never went well with Americans. There are many kinds of Amercans, like those sharing British colonial sentiments, like those who were Soviet spies, like those who unconsciously worked as communist fellow travellers, and like those [Kerr] who despised Chiang Kai-shek's background and personality. There are last two categories, missionary Americans and true sympathizers of Chinese cause, including Stuart who had not cooperated with Standford U in grabbing Chinese Dunhuang Grotto Treasure, Chennault who ws shouldered to the airport by the Chinese in a jeep, and John Birch who devoted his life to the missionary duty in China. [http://www.thenewame...no09_birch.htm] We Chinese need to discern the truth and know who are our friends and who are not. We need to bear the lesson from true and real history, not to be misled by perjured or fake history.

Edited by ahxiang, 21 August 2005 - 12:46 AM.

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#20 Grigori

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Posted 21 August 2005 - 12:47 AM

Kung was as corrupt as they get. In the 1950s a group of servants at his American mansion complained to authorities that they had been forced to work on his estate with no pay for years. Some of them tried to escape, but were caught, and were hung up to hooks in the ceiling and whipped.

Kung was the epitome of "Old China".

#21 ahxiang

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Posted 21 August 2005 - 12:53 AM

Kung was as corrupt as they get. In the 1950s a group of servants at his American mansion complained to authorities that they had been forced to work on his estate with no pay for years. Some of them tried to escape, but were caught, and were hung up to hooks in the ceiling and whipped.

Kung was the epitome of "Old China".

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I did not say HH Kung was not corrupt. My history read showed that he was sacked from finance post for the "insider trading" of the half million US-denominated bonds. His wife had profiteered from bonds and foregn exchange. However, Kung built up the 1 billion US dollar coffer for Chiang regime, and he dared not to embezzle Chiang's money direct. CC Clique and Military Investtgation Bureau, and Political Science Factio were all against Kung. The faction fight was Chiang's scheme to balance and check. Should Kung have direct embezzelment, pretty sure Chiang would have Kung killed. And, Kung's influence was almost gone by 1945.
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#22 Grigori

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Posted 21 August 2005 - 12:59 AM

Whether there was any truth to the above-rumored US aid from Truman, one thing widely reported in US media was that Truman had hinted that Song-Kong families could donate 0.3 billion US dollars to Chiang Kai-shek.  Truman abandoned China, and China supported the Republican presidential candidacy in 1947-1948, Tom Dooey.

After half a century, Chiang kai-shek never went well with Americans.  There are many kinds of Amercans, like those sharing British colonial sentiments, like those who were Soviet spies, like those who unconsciously worked as communist fellow travellers, and like those [Kerr] who despised Chiang Kai-shek's background and personality.  There are last two categories, missionary Americans and true sympathizers of Chinese cause, including Stuart who had not cooperated with Standford U in grabbing Chinese Dunhuang Grotto Treasure, Chennault who ws shouldered to the airport  by the Chinese in a jeep, and John Birch who devoted his life to the missionary duty in China.  [http://www.thenewame...o09_birch.htm]  We Chinese need to discern the truth and know who are our friends and who are not.  We need to bear the lesson from true and real history, not to be misled by perjured or fake history.

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Blaming US for Chiang's problems is rather silly. Truman didn't like Chiang because he thought he was a corrupt dictator. Congress gave China $1 billion after 1945, not a small sum considering France and Britain each got $2.5 billion from the Marshal Plan, and things were a lot cheaper in China.

Chiang had spent a lot of money on Dooey against Truman in 1948. It's estimated that ROC spent $200 million a year between 1945-1948 on propaganda jobs in the US. Chiang hoped a Republican victory would bring US into his civil war. Why in the world would Truman be sympathetic to Chiang after the elections victory?

As it were, Republican "Friends of China" were much more influencial than the alleged Soviet spies in the US. But even the powerful China Lobby couldn't convince Congress Chiang could be saved by throwing more money at him.

#23 ahxiang

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Posted 21 August 2005 - 09:57 PM

Blaming US for Chiang's problems is rather silly. Truman didn't like Chiang because he thought he was a corrupt dictator. Congress gave China $1 billion after 1945, not a small sum considering France and Britain each got $2.5 billion from the Marshal Plan, and things were a lot cheaper in China.

Chiang had spent a lot of money on Dooey against Truman in 1948. It's estimated that ROC spent $200 million a year between 1945-1948 on propaganda jobs in the US. Chiang hoped a Republican victory would bring US into his civil war. Why in the world would Truman be sympathetic to Chiang after the elections victory?

As it were, Republican "Friends of China" were much more influencial than the alleged Soviet spies in the US. But even the powerful China Lobby couldn't convince Congress Chiang could be saved by throwing more money at him.

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This is not a matter of finding a scapegoat for Chiang's fall. It is for strainghtening out the riddles.

I already expounded on the Lend-Lease matter.

You had repeated the claim as to "Congress gave China $1 billion after 1945". The Aug 1949, 1000 page US White paper published by D.G. Acheson claimed that US had given to China US$2 billion. I did not have a chance to study this paper yet. Should anyone find a copy available on the internet, I will like to read it and do some comparison.

Previously, I had provided the total gold Chiang moved to Taiwan. I also provided some baseline as to Chiang's money balance in 1934, and 1945. Once I dug out the airdrop cost to supply the troops in CHangchun, Shenyang and Jinzhou, probably people could tell why Chiang Kai-shek ran bankrupt.

I had analyzed HH Kung's money dealings. TV Soong had his diaries and documents sent to Standford. Anyone interested should go there to do some fiinding. I doubt he would go against the 0.9 billion US dollars Chiang had at 1945-1946. The reason it was halved by 1947 had to do with raging civil wars.

I would advise buying 100% what Seagrave and American academic had said. Seagrave did not take into account of inflation caused by the Japanese "military currency" and the money printed by Nanking puppet government. They probably need to shut up after Soviet archives did confirm that Alger Hiss; Harry Dexter White; Lauchlin Currie; Laurence Duggan; Frank Coe; Solomon Adler; Klaus Fuchs; and Duncan Lee and more were communists.

American involvement and Lend-lease aid to China was a manipulation by Comintern agents because Stalin was worried that China would lose to Japan. Once Stalin determined that China and Japan were in deed bogged down, he made sure that China would not emerge strong after WWII, as the British long planned. Churchill ordered HK to surrender to Japan rather than persist in a defence war against Japan with the help of Chinese. Churchil said HK could return to UK if given to Japan but would be lost if Chinese troops came in. China's fate was invariably linked to the colonial powers. It is not a matter of blaming US, Japan, Russia or Britain.

Edited by ahxiang, 21 August 2005 - 10:00 PM.

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#24 superquarterback

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Posted 22 August 2005 - 06:38 AM

Excellent contributions Ahxiang ! I'll wait for your next posts. We need to clarify Chiang, Soong and Kung corruptions.
It is interesting to know British, American and USSR roles not known to public.

Edited by superquarterback, 22 August 2005 - 06:40 AM.

"A country that does not respect history has no future."

#25 ahxiang

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Posted 25 August 2005 - 11:45 PM

Excellent contributions Ahxiang ! I'll wait for your next posts. We need to clarify Chiang, Soong and Kung corruptions.
It is interesting to know British, American and USSR roles not known to public.

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After reading through memoirs by Chiang Kai-shek's attache and secretaries, I could not explain the riddles about the fast fall of Chiang Kai-shek regime. Blaming on corruption by Kung-Soong families, by Whampoa lineage, by communist espionage, and by communist propoganda did not explain the whole issue.

Over the weekend, I found my answers. What I was surprised about is that someone already saw through the riddles. It is just the coverup and ignoring by the mainstream academic and politics that buried the gem in the sand.

What I am referring to here is the following writing by some brave woman called Freda Utley.

http://www.fredautle...m/toolittle.htm

The China Story by Freda Utley

Chapter 2, Too Little, Too Late --
The Facts About "Aid to China"


My previous doubt about "Acheson's 2 billion aid" was completely answered here. There is no need to find the original c**p written by Acheson for any comparison. Freda did it for us dozens of years ago. 2 billion was a c**p, and Lend-Lease was a c**p. Evidence reinforced my conviction that Curie was a Comintern spy working to destroy China on behalf of Russians. Marshal could not off-load his responsibilities, either. Every righteous Chinese will be indignant about what he is to discover next !!!!!!!!!

Edited by ahxiang, 25 August 2005 - 11:47 PM.

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#26 ahxiang

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Posted 26 August 2005 - 12:14 AM

Summaries from
The China Story by Freda Utley
Chapter 2, Too Little, Too Late --



1) Following Japan's surrender, shipments of Lend-Lease supplies to China from India were stopped, and large quantities of munitions and equipment intended for China were destroyed, or thrown into the sea. Smaller caliber ammunition was blown up, and 120,000 tones of larger caliber dumped into the Indian Ocean.2/ This "Operation Destruction" cost the lives of twenty-five Americans and one hundred and twenty-five Indians. Yet, these destroyed munitions are to be found included in the total of "pre-V-J Day Lend-Lease" charged to China's account.


2) The standard Chinese Nationalist rifle ammunition was the same as the German 7.92 mm. Had the Administration desired to help create a "strong, independent and friendly China," ample ammunition could therefore have been supplied at no cost to the National Government after Germany's defeat. The supply of German light arms and ammunition to China was urgently recommended by General Wedemeyer following V-E Day, and shipment was approved by the Joint Chiefs of Staff. A first consignment of twenty thousand rifles had actually left a German port for China, but was stopped en route by an order signed by Lauchlin Currie on White House stationery, forbidding any such aid to China. Ultimately a part of what could so easily have been given to China ended up in Russian hands in East Germany, and the rest was destroyed.


3) Lend-lease assistance was extended to China to assist her in fighting the Japanese, and later to fulfill our promise to assist in re-occupying the country from the Japanese. Assistance took the form of goods and equipment and of services. Almost half the total made available to China consisted of services, such as those involved in air and water transportation of troops. According to the latest figures reported, lend-lease assistance to China up to V-J Day totaled approximately $870,000,000. From V-J Day to the end of February [1946], shortly after General Marshall's arrival, the total was approximately $600,000,000 -- mostly its transportation costs.

Thus, in our analysis of the actual military aid given to China after Japan's defeat, we must first deduct the $335.8 million represented by the cost of repatriating the Japanese and accepting their surrender. This leaves us with a total of $461.9 million of postwar military aid to China. This figure must be further reduced by eliminating the non-military "surplus war stocks" sold to China in 1946, which Mr. Acheson also includes in his total of "military aid." For as noted in the previous chapter reviewing General Marshall's mission to China, President Truman, in the summer of 1946, expressly prohibited any further acquisition by China of arms or ammunition which could be used to fight the Communists. So the "surplus" United States war stocks sold to China in 1946 included little of any military value to the National Government. Out of the total of $100 million worth of "surplus" United States stocks sold to China in 1946, 40 per cent consisted of quartermaster supplies, and only $3 million consisted of the small-arms and ammunition required in the war against the Communists.

It is true that some armaments, such as large-caliber artillery pieces, were included, but these were not of a kind, as I shall show later, which could be used in fighting the Communists. The same can be said of such items as the half-million gas masks, priced at $8 apiece--total $4,000,000--which the Chinese Government presumably bought for the value of the rubber to the civilian economy.

Elimination of both the "services" charges and of the $100 million or so of United States non-military "war surplus" stocks sold to China in 1946 reduces the total of postwar "military aid" to China to about $360 million. This total is disputed by the Chinese National Government. According to its calculations, China received $110 million worth of "effective military aid" prior to the 1948 China Aid Act, which, together with the $125 million allocated by that Act, brought the total to $225 million. Whichever figure is correct, the total sum is far less than the "billions" which are popularly assumed to have been squandered to no purpose.


4) In a letter to Senator Connally on March 15, 1949, Mr. Aches stated more explicitly that United States aid to China since V-J Day totalled "over $2 billion." He wrote:

"Despite the present aid program authorized by the last Congress, together with the very substantial other aid extended by the United States to China since V-J Day, aggregating over $2 billion, the economic and military position of the Chinese Government has deteriorated to the point where the Chinese Communists hold almost all important areas of China from Manchuria to the Yangtze River and have the military ability . . . of eventually dominating South China. . . . The Chinese Government forces have lost no battles during the past year because of lack of ammunition and equipment, while the Chinese Communists have captured the major portion of military supplies, exclusive of ammunition, furnished the Chinese Government by the United States since V-J Day. There is no evidence that the furnishing of additional military materiel would alter the pattern of current developments in China (italics added)."

Let us first break down that $2 billion total into its component parts, with a view to ascertaining the actual amounts of military aid given the National Government of China to resist Communist aggression.

According to the figures given on pages 1043-44 of the White Paper, Mr. Acheson's over-all figure of $2 billion of postwar aid to China includes a total of $799 million of "economic aid," and $797.7 million of "military aid," which together add up to something over $1.5 billion. The balance of the $2 billion is not itemized, but presumably includes the United States' share of UNRRA aid, which is calculated to have amounted to $474 million.

The largest single item in Mr. Acheson's total of $797.7 million of military aid is "services and expenses" amounting to $335.8 million, and listed under the heading "Postwar Lend-Lease." The "services" referred to consisted of the cost of repatriating the million or more Japanese soldiers in China, and of transporting the Chinese Nationalist forces to accept the surrender of the Japanese Army in the liberated territories. According to President Truman, these "services" cannot properly be regarded as "postwar" Lend-Lease, but must be included under the heading of World War II expenditures.

5) Before proceeding to an account of the 1948 China Aid Act, it is necessary to examine the consequences of General Marshall's 1946-47 embargo on the shipment of arms or ammunition to China, and President Truman's insistence that no help should be given to the anti-Communist forces in the so-called "civil war."

Colonel L. B. Moody, a United States Army Ordinance Corps officer, now retired, who served with the Donald Nelson mission to China, has made an intensive and detailed study of aid to China. In a speech in Washington on April 11, 1950, he said that in China ..."the massive support of artillery, tanks, motor transport and aircraft to which western armies are accustomed is practically non-existent. The side which has the predominating infantry weapons, and especially the ammunition therefore, holds all the aces...It is obvious that "military aid" means to the Chinese infantry weapons and ammunition above all else, and it is precisely these items which the United States action has consistently denied, delayed or limited. Only passing reference will be made to the billions of moldy cigarettes, blown-up guns, junk bombs, and disabled vehicles from the Pacific Islands, which have been totaled up with other real or alleged "aid" in various State Department, Communist, and leftist statements to create the impression that we have furnished the Nationalist Government with hundreds of millions, or even billions, of dollars worth of useful fighting equipment..."

From the start of Japanese aggression to this evening the prime need of the Nationalist Armies has been, in the language of Joe Stilwell, "Bullets, D**n it, just bullets."

6) Colonel Moody also drew attention to the fact that the Chinese Communist admissions concerning their own casualties disproved the popular assumption that the Nationalist forces lost because of poor morale. For the Chinese Communist command reported that in the three years of civil war from July 1946 to July 1949, the number of their killed and wounded was 1,233,600. This is greater than the total of American casualties in World War II.


7) General Marshall's embargo on the sale of American arms and ammunition to the Nationalist forces in China was not lifted until July 1947, when the State Department allowed the Chinese Government to purchase some three weeks' supply of 7.92 mm. ammunition -- 130 million rounds. Chiang Kai-shek had been endeavoring, for a year, to get per mission from the State Department to be allowed to acquire this ammunition, which could not be sold to anyone else because it had been made during World War II according to Chinese specifications.

One other small boon was vouchsafed to the Nationalists in 1947. The Marines and the Navy, when ordered to leave China, gave them a six days' supply for their .30 caliber weapons.

Colonel Moody calculates that in December 1947 at the normal rate of use, the total of ammunition in possession of the Nationalists was sufficient for only twenty-two days in the case of the Chinese 7.92 mm. weapons; and for thirty-six days in the case of the Chinese 7.92 mm. weapons; and for thirty-six days in the case of their .30 caliber-U.S.--guns.


8) The White Paper emphasizes the aid that was supplied to China early in 1948 by permitting the National Government to buy, at bargain prices, the stores which had been rotting on Pacific Islands. But it does not mention the fact that the "surplus" ammunition made available to China in January 1948 consisted mainly of types useless to the Chinese Nationalist forces. Colonel Moody’s detailed analysis shows that of the total offered only 3 per cent was of the required groundforce types, and only 2 per cent of useful air-force types, and not all of this was serviceable.

Only 52,500 cartridges of the .30 caliber they required for their American rifles and machine gunes were to be found, accounting for one-fortieth of one per cent of the total supplies made available to them. Certain other types of small-arms ammunition they could use brought the total tonnage to sixty-three tons, less than two-thirds of one per cent of the total shipped. This was at a time when the anti-Communist forces in China were going into battle with barely enough ammunition to fill their cartridge belts.

The Chinese contracted from their own funds for the 10,000 tons of ammunition that was made available to them at bargain prices early in 1948, because although little of it consisted of what they required, they hoped to make future use of it. For instance, they bought a stock of large-caliber shells in order to extract the explosive for mining and industrial operations, or to use in Chinese arsenals for loading the ammunition they made for themselves. But by making these purchases they enabled the State Department to claim that large supplies of munitions had been made available to fight the Communists, which was not so.

In the period December 1947 to November 1948 (when munitions voted in April 1948 in the China Aid Act began to arrive) the total of "surplus" United States ammunition sold to the Chinese provided only a months’s supply for the weapons they had and could use. Chinese production could provide only 7 to 8 per cent of requirements. Colonel Moody therefore calculates that the total of Chinese-produced and American rifle and machine-gun ammunition produced or acquired in 1948 amounted to only some sixty-three days’ supply in active operations.


9) A couple of months later the Chinese delegate to the United Nations, Dr. T. F. Tsiang, appealed to Secretary of State Marshall in Paris. He asked if anything would induce the United States to help China. He offered to put United States officers in actual command of Chinese troops "under the pretense of acting as advisers." He begged for munitions. And, finally, he asked General Marshall "as to the advisability of Chinese appeal to the United Nations because of Soviet training and equipping of Japanese military and also the Koreans."

10) In the fall of 1948, William C. Bullitt, on his return from a visit to China, reported that "the so-called mission sent to aid Chiang" had been instructed "not to advise him" with regard to the operation of his forces.

The former Ambassador and confidant of Franklin D. Roosevelt further stated that "nearly half of the 1500-man military "mission" was composed of fellow travellers and Communist sympathizers."



11) In his report General Barr provides an answer to the charge so assiduously propagated that the Nationalist forces allowed their equipment to be captured by the Communists. In China, ages of lean living developed a capacity to make use in some way or another of what others would regard as refuse; thus the Chinese have acquired what General Barr calls an "inherent" inability to destroy anything of value. General Barr describes their failure to destroy equipment when forced to surrender or retreat as due to this characteristic. It should also be noted here that Mr. Acheson himself in his letter to Senator Connally quoted at the beginning of this chapter admits that ammunition was not captured by the Communists from the National forces. This evidence suggests that the latter surrendered because they ran out of ammunition.



12) Let us now resume our account of the record of "aid to China."

General Marshall’s embargo on shipment of aid to the anti-Communist forces was, as we have already seen, lifted in the summer of 1947. The small quantity of munitions which China was then allowed to buy was considered by the Chinese Government as the only effective aid against the Communists which America had permitted them to obtain since General Marshall went to China.

Finally, in 1948, the Administratin, as a result of the Republican control of the House of Representatives in the 80th Congress, was compelled to include a grant of $125 million of military aid to China in the China Aid Act, originally presented only as an economic aid program.

But the Chinese Government was nevertheless unable to procure the munitions it so desperately needed until nearly the end of the year.

On April 5, 1948, the Chinese Ambassador in Washington made his first request for implementation of the Act. Two months went by with the Chinese pleading in vain to be allowed to make their wants known and start procuring supplies with the funds appropriated by Congress for th is purpose. At last, on June 2, President Truman (who had that same day received a strongly worded letter from Senator Bridges, the Chairman of the "Watch Dog" Committee) wrote to Secretary of State Marshall and to the Treasury advising them of the procedures to be followed in permitting China to make use of the sums appropriated. General Marshall waited over three weeks, until June 28, before so advising the Chinese Ambassador.

Even then the Chinese could not acquire arms and ammunition because the President had authorized only commercial transactions, and the munitions required could be obtained only from Government stocks. Another month passed before the President issued a directive authorizing United States Government departments and agencies to transfer military materiel from their own stocks, or procure it for the Chinese Government. (A year later the State Department was to point with pride to its "initiative" in having arranged the procedures for China to obtain supplies by July 28--nearly four months after the China Aid Act was passed!)



13 ) As Vice Admiral Russell S. Berkey said on May 15, 1950:

The Chinese Reds would still be north of the Great Wall if specific items of arms authorized by Congress two years ago had reached the Nationalist forces in time. For some reason or other it took nine months to get specific items to China. Somewhere in the United States somebody slipped up, bogged down, or was interfered with. It has never been made plain why this material did not arrive in time.

Even at the end of J uly munitions did not start rolling to China. From the State Department the matter went to the Army Department, which siad it could not act, or even specify the prices at which munitions would be sold, until after it had spent several weeks on "availability studies." It was not until late in September that these studies were completed. The Chinese then found that they were to be charged prices five to ten times higher than the thirty-odd other nations permitted to buy United States munitions. This drastic reduction of the total amounts they had expected to obtain under the China Aid Act necessitated the drawing up of new lists. This occasioned another, though only short, delay. The Army Department, however, now informed the Chinese that they could not expect shipment before early 1949.

In October, President Truman (influenced perhaps by the fact that the delay in getting arms to China had become an election campaign issue) issued expediting instructions, and the first substantial shipment of arms to China left Seattle on November 9, 1948. By this time the Communists had conquered the greater part of China.

The President’s October directive was succeeded by more delays. "Availability studies," priorities, export licenses, and so forth, snarled deliveries once again, so that by April 30, 1949--thirteen months after Congress had voted arms aid for China--nearly a quarter of the supplies to be furnished had not yet been shipped.

In addition, the total amount of munitions China was permitted to buy with the $125 million turned out to be only about one-eighth of what had been expected. It had been assumed by Congress and the Chinese Government that the prices charged would be the same as to Greece and Turkey, not to mention the thirty-odd other natons to whom "surplus" munitions were sold at 10 per cent of list price cost. Instead, when at last on August 31, 1948, the Army had progressed far enough in its "availability studies" to give prices on some items of arms and ammunition, the Chinese discovered they would be required to pay more than double published prices, and an average of 50 per cent in excess of current commercial quotations for new manufacturers. There was no possibility of obtaining the arms or ammunition from any private sources. The Army was in fact charging the Chinese a monopoly price.



14) Most of America’s postwar economic aid to China consisted of immediate relief to the homeless and starving. Little was provided to remove the causes of starvation. UNRRA aid, the greater part of which was provided by the United States, consisted mainly of food and clothing. Some undertakings were financed which would have been constructiveif the Communists had been prevented from destroying every dam, railway, mine, or industry reconstructed with UNRRA aid. For instance, Communist guerrillas quickly destroyed the Yellow River flood rehabilitation work of UNRRA engineers, constructed at a cost of millions of dollars. They simarilarly destroyed roads and railways repaired with UNRRA funds. While engaged in this deliberate destruction, they were receiving UNRRA relief supplies. For we insisted that a due proportion of UNRRA aid be furnished to Communist areas.

15) The Communists by this time seemed to have been so well supplied with everything they required that they refused UNRRA relief and medical supplies, rather than allow American personnel to enter their territory. According to a New York Times dispatch from Peiping dated June 21, 1947, Cornelius Bodine, of Philadelphia, the UNRRA director for the Changchun area, was twice refused entry to Communist-controlled areas of Manchuria. The Communists evidently desired to prevent at all costs foreign observers from learning how much help Russia was giving them.


16) According to the Chinese Central News Agency, thirty thousand Japanese "prisoners" and ninety tanks were backing the Communist offensive in Manchuria. Its Mukden correspondent reported early in June that "a special bureau" of "a certain nation" had supplied the Communists with equipment for twenty divisions, and that citizens of that "certain nation"--the usual designation for Russia in the Chinese press--or Japanese were manning the tanks that were spearheading the Communist offensive. The eventuality feared all through the Sino-Japanese War had become a reality; the Communists were fighting together with the Japanese against China under Russia’s orders.

In March 1947, Lieutenant General John R. Hodge, a U.S. commander in Korea, stated that Chinese Communist troops were participating in the training of a Korean army of 500,000 in Russian-held North Korea. The Chinese Central News Agency stated in June that more than 100,000 Russian-trained Koreans plus a cavalry division from Outer Mongolia were in action against the Chinese Nationalist forces.


As General Pai Chung-hsi, the Minister of Defense, stated on May 1, 1947, the government’s military progresshad been blocked by the truces and peace talks of the preceding year. "Immediately after the recovery of Kalgan (October 1946)," said the Kwangsi general, who is regarded as China’s foremost strategist, "we could have blasted open the whole Peiping-Hankow Railway, but our actions were deferred by intervals of negotiation. The government has suffered from an irresolute policy."

By June 1947, when prophecies were already being made in the American press that Manchuria would be lost to China, the National Government at last realized that its long silence concerning Russia’s hostile acts had merely emboldened the Soviet Government to increase its aid to the Chinese Communists, and that United States help was unlikely to be forthcoming until the American people were informed of the true facts of the Far Eastern situation.

On June 25, the Chinese Ministry of Foreign Affairs issued a communique detailing for the first time the long record of Soviet obstruction to China’s attainment of her rights under the Sino-Soviet Treaty.

"Sources close to the Generalissimo" were reported by American correspondents to be saing that Chiang Kai-shek and his advisers were framing a new policy calling for a stronger stand against Russian aggression. The policy of silence and appeasement was being abandoned, but the extent to which China would go toward a diplomatic showdown with Russia would depend upon United States support.

General Chen Cheng, the Chinese Chief of Staff, charged on June 24 that at least thirty-one Russian advisers were known to be with the Communist forces fighting at Szepingkai, the important railroad point seventy miles from Mukden.

The Chinese Nationalist commander in besieged Szepingkai said that the Communists had battered the city with 100,000 artillery shells and that Russian-trained Koreans manned the Communist guns.

Following the lifting of the siege by Nationalist forces at the end of June, the Chinese Central News Agency accused Russia of having shipped 56,635 tons of military supplies to th e Chinese Communists in June, twelve Soviet ships having unloaded supplies for them at Dairen, while others ran a shuttle service between the Manchurian part and Chefoo, the Shantung port occupied by the Communists.

so in 1946and in 1947 the Chinese Nationalist commanders found themselves unable to crack the Communist line north to Dairen for fear of encroaching on Russia’s newly established extraterritorial rights on Chinese soil. In the fall of 1946, according to Christopher Rand of the New York Herald Tribune, two Communist regiments had taken refuge at Port Arthur from Nationalist attack, and sheltered there until they emerged in the spring of 1947 to take in the Communists’ greatest offensive.

As Tillman Durdin of the New York Times reported in April 1947, the Communist forces were backed up against the Russian "defense zone" running from Port Arthur in back of Dairen, and the Chinese Government feared the "complications" which would arise if the Communists retreated into Russian-occupied territory.

On July 4, the National Government, after rallying its forces for a successful counter-offensive in Manchuria, announced its abandonment of all hope for a political solution of the Communist problem and denounced the Communists as "armed rebels" who could be dealt with only by force.

Vice President Sun Fo, so long an advocate of Sino-Soviet friendship and collaboration, was reported to be one of the leading advocates of this resolution, which marked the end of China’s "Coue diplomacy" and placed her unequivocally in the world anti-Communist camp.

It was at this juncture that the United States Administration relented sufficiently to permit the Chinese Nationalists to buy 130 million rounds of ammunition in the United States. General Marshall, however, denied on July 2, 1947, that America was not supporting the Nationalist Government against the Communists. It was still the proclaimed policy of the United States to deny aid to China until the civil war ended, which meant in effect until Chiang Kai-shek came to terms with Stalin.

The Chinese were still hoping that the logic of facts would eventually convince America that there was no sense in stalling Soviet aggression in Europe while leaving our back door on the Pacific undefended. They had resisted Japan for years without our help, hoping that eventually we would become their allies. They hoped to be able to continue resisting Russia as long. But there is a limit to human endurance, and hope constantly deferred maketh the heart sick. By 1949 even inveterate enemies of the Communists saw no further possibility of resistance, in the face of United States’ refusal either of aid or moral support. China went down before the overwhelming might of Soviet Russia’s satellite forces, while the "Voice of America" broadcast praise of the Chinese Communists.
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#27 fsgien

fsgien

    General of the Guard (Hujun Zhongwei/Jinjun Tongshuai 护军中尉/禁军统帅)

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Posted 28 August 2005 - 06:54 AM

this facet of chinese history puts to shame many modern financial conniverings;
seagrave's "soong dynasty" touches on it,
then the Kung's mansion in Forest Hills, though some of it comes from the wife's indonesian family .

one wonders whether what was kept in trust for the country during the sino-japanese war will ever be repatriated back to the people, for whom it was donated or part of the war bonds program

this is a can of worms with much intrigue ;-(




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