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Worst Yet. Last week Daddy Kung came to the U.S. for the official purpose of representing China at the World Monetary Conference which convenes July 1 at Bretton Woods, N.H. But his presence meant far more important things for both Dr. Kung and China. T. V. Soong faded somewhat into the background. His Washington organization, "China Defense Supplies," which has been handling U.S. supplies to China, will be disbanded this week, its remnants placed under routine care of the Chinese Embassy. A new setup, staffed by Kung's men, will replace it. The Kung visit also signalled that the worst of all the Chinese crises is at hand. China's rampant inflation has now gone so far that perhaps only an unprecedentedly large U.S. loan can save the country from economic chaos. With U.S. military aid still far from the plains of China, the victorious Jap was threatening to cut the country in two by gaining control of north-south rail communications. Washington buzzed with rumors that Chiang Kai-shek might have to set up a Government in Exile there. Sixty-four-year-old Daddy Kung, very tired and not at all well, looked languidly out at careering Washington, dug in for a hot summer of hard fighting.