CHINA: Bad Government

The Nationalists were winning China's Civil War. Prospects of Government control of all Manchuria (the sine qua non of a strong, independent China) were brighter last week than at any time since liberation. Yet the news from China was bad—appallingly bad. China was hurtling into economic disaster and political anarchy. Its causes: 1) Communist rebellion; 2) failure of the U.S. to send enough prompt aid; 3) the corrupt inefficiency of the National Government. Last week TIME Correspondent William Gray took a long, hard look at China. His report:

The old quandary—how much...