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 TOP SECRET forth in the following paragraphs.

8. While continuing to recognize the National Government as the legal government of China, the United States, with respect to Communist China, should now:


 * . Continue strong efforts to deflate Chinese Communist political and military strength and prestige by inflicting heavy losses on Chinese forces in Korea through the present UN operation.


 * . Expand and intensify, by all available means, efforts to develop non-communist leadership and to influence the leaders and people in China to oppose the present Peiping regime and to seek its reorientation or replacement.


 * . Foster and support anti-communist Chinese elements both outside and within China with a view to developing and expanding resistance in China to the Peiping regime's control, particularly in South China.


 * . Stimulate differences between the Peiping and Moscow regimes and create cleavages within the Peiping regime itself by every practicable means.


 * . Continue United States economic restrictions against China, continue to oppose seating Communist China in the UN, intensify efforts to persuade other nations to adopt similar positions, and foster the imposition of United Nations political and economic sanctions as related to developments in Korea.

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