SECRET
Ittrt 'tVt
FAR EAST
CHINA
Political Consolidation The recent assignment of leading
Communuit military figures to high political positions suggests that the Communists now believe that the military phase of the revolution is virtually over, or at least subordinate to the bisk of political and economicTop-rank Commanders Chen Yl and Liu Po.-Cheng have been appointed to senior positions In Shanghai and Nanking. Their appointment appearsd logical daring theperiod of martial law since both men are able administrators and experienced in organizing and operating military governments.
Communist Government
of Communist-controlled central Communist of China Is not 1mm proclaimed until at that the USSRhe Communists government. It western powers national status to China's seat
use of the need for further itteal and economic consolidation itory, the establishmentlaiming./jurisdiction over allegime will probably not be October. Moreover, It is unlikely ord formal diplomatic recognition to they have establishedentral be some time, therefore, before the be forceutotand on the inter -
China, particularly with reference the UN Security Council and its representation
on other International bodies.
Soviet Orientation Meanwhile, Chinese Communist strte-
ments have been entirely in accord with orthodox Communistd the Party continues in lbs unwavering acknowledgement of Soviet leadership in the international Communist movement Despite this orthodoxy, Uie Chinese Communists mayemporary facade of
SECbET
CHINA
friendly cooperation with the western powers In order to expedite trade and commerce essential to China. In fact, China's tremendous economic needs and the inability of tbe USSR to fill those needs offer the most likely prospect at present for the development of friction between the two nations.
Original document.
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