MAINLAND RECOVERY PREPARATIONS

Created: 5/10/1962

OCR scan of the original document, errors are possible

a tion report

central intelligence agency

m tin. ii.

DISSEM ABfiOAD(UMHHJi

china (taiwan)

9JECT mainland recovery preparations

of

L ACQ.

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NO. OATS OiSTR. PRECEDENCE REFERENCES

I THE ARMED FORCES OF THE GOVERNMENT OF THE REPUBLIC OF CHINA (QRCljgRE So PERCENT READY FOR com3 AT, 'WUL0 BEJOOregPff READY IN THREE^ MONTHS, WITH ONE ARMY ANO^SmV LSI ONS_FP^.

_PAST EMPHASIS HAD "BEEN ON REPAIR AND RECONDITIONING OF OLD MILITARY equipment, BUT FOLLOWI NO PASSAGE OF THE nat km. DEFENSE PREPAREDNESS EXPENDITURESquipment WOULD be ADDED TO THAT ALREADY ON HAND.

ISSEMINATIONDISSEMurTTOf

report

flPPRDVia FDR"9S8

DATE: MAY

EC RET

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- OlUOmAllOH CONMOli

NOfCRN/NO DISSEM ABROADjUMITtD/

ARMED FORCES WERE NOW IN THE PROCESS OF BU.LDING

'uT.ES FOR THE STORAGEO TONS OFPET^OL^PR^DUCTS.

-THE

! TeO STATESLY AND DIRECTLY OPPOSED HE KEY TO COUNTERATTACK LAY IN GRC PREPAREDNESS TO ADVANTAGE OF OPPORTUNITIES AS THEY AROSE ON THE MAINLAND.

1HZ PZCSJDEPARATIONSH^MAINLANDT WOULD NOT MATTERt<TUDE'the AMERICANS AWTEDj THE GRC .WOULD/_CT.

The united states would

CONSENTAINLAND COUNTERATTACK, NOR RAISE SERIOUS OBJECTIONS TO IT BECAUSE OF THE CONSEQUENCES OF EITHER ACTION. THE COUNTERATTACK WAS THUS'SOLELY THE CONCERN OF THE GRC,

_ONCE THE GRC DECIDED ON ITS COURSE OF ACTION, THE UNITED STATES WOULD GO ALONG WITH THE DECISION OF NECESSITY.

SECRET

IIOU

NCfOKNfNO DISSEM ABROAO/liMJTED/

LEAST TEN BILLION NEW TAIWAN

OO,OCO HAD BEEN SPENT ON WAR PREPARATIONS SINCE0

PRILAD BEEN SPENT DURING2 FISCAL YEAR.)

DOLLARS WOULD BE REQUIRED DURING THE FIRST STAGES OFthe FUTURE, the GOVERNMENT'S

ONLY RECOURSE WOULD BE TO ISSUE WAR BONOS AND FORCE THEIR PURCHASE.

THE MINISTRY OF FINANCE WAS PLANNING TO ISSUE

N WAR BONDS IN ADDITION TO THEHORT TERM BONDS ALREADY ISSUED. THESE BONOS WERE NOT TO BE SOLD TO THE PUBLIC, BUT ALLOCATED TO WEALTHY PERSONS ON THE BASISASTER LIST PREPARED BY THE MINjSTRY OF FINANCE, ACTUAL ISSUANCE OF THE BOND*JLD BE TIMEO WITH THE COUNTERATTACK PROGRAM; PURCHASE OF THE BONDS WOULD BE OBLIGATORY.)

END OF ME 5

DEPARTiiEST OF STiTEfly

XDSrSXT. DATS

01SSEMINA

(HOS

xac nans so.

Original document.

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