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Development of China

February 17, 1945

Report Outline
Wartime Foundations for Future Expansion
Chinese Resources for Postwar Development
Plans for Postwar Development

Wartime Foundations for Future Expansion

In the midst of war, long-range plans are being laid by the government of Generalissimo Chiang Kai-shek, with the assistance of American experts, for the establishment of a productive and prosperous economy in China when peace is restored. Intensive development of China's economic resources and of her trade with foreign nations is considered essential if China is to replace Japan as the dominant power in the Far East.

Large-scale expansion of her agricultural and industrial production would enable China to raise the present low standards of living of her people and largely to increase her purchases from the United States and her other allies in the present war. Stable political and economic conditions would make China an attractive field for postwar investment of foreign capital, both privately and through the proposed International Bank for Reconstruction and Development.

Donald M. Nelson, former chairman of the War Production Board, said upon his return from Chungking, Oct. 9, 1944: “Some other nation must take Japan's place in the world of industry and trade and beyond doubt democratic, peace-loving China is that nation.” In his report to the President, Jan. 26, 1945, Nelson wrote:

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International Economic Development
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