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The Chinese Nationaliust government or Kuomintang (KMT) was allied with the U.S. and Britain against Japan, and at war's end joined the United Nations as a permanent member of the 5-nation Security Council, with a veto.  The Americans attempted to force a negotiated settlement between the KMT and the Soviet-backed Communists, but failed.

The Chinese Nationaliust government or Kuomintang (KMT) was allied with the U.S. and Britain against Japan, and at war's end joined the United Nations as a permanent member of the 5-nation Security Council, with a veto.  The Americans attempted to force a negotiated settlement between the KMT and the Soviet-backed Communists, but failed.

Chiang Kai-shek himself would claim that Deputy Secretary of Treasury [[Harry Dexter White]], a prominent [[New Deal]]er and member of the [[Communist Party USA]], and his staff sabotaged the Chinese Nationalist government's economic policies.  The United States Congress had made a commitment to the Nationalist government with the China Gold Act to supply $200 million in gold to curb inflation in Nationalist China.<ref>[[David Rees]], ''Harry Dexter White; a Study in Paradox'', London, 1974, pg. 333.</ref>  White's direction from the [[Kremlin]] prevented the shipment until it was too late to be effective in stemming the inflation. In a December 9, 1944 memo to Treasury Secretary Morgenthau, White wrote,  

Chiang Kai-shek himself would claim that Deputy Secretary of Treasury [[Harry Dexter White]], a prominent [[New Deal]]er and member of the [[Communist Party USA]], and his staff sabotaged the Chinese Nationalist government's economic policies.  The United States Congress had made a commitment to the Nationalist government with the China Gold Act to supply $200 million in gold to curb inflation in Nationalist China.<ref>[[David Rees]], ''Harry Dexter White; a Study in Paradox'', London, 1974, pg. 333.</ref>  White's direction from the [[Kremlin]] prevented the shipment until it was too late to be effective in stemming the inflation. In a December 9, 1944 memo to Treasury Secretary [[Henry Morgenthau]], White wrote,  

{{Cquote|We have stalled as much as we have dared and have succeeded in limiting gold shipments to $26 million during the past year.  We think it would be a serious mistake to permit further large shipments at this time.<ref>David Rees, ''Harry Dexter White; a Study in Paradox'', pg. 326.</ref>}}

{{Cquote|We have stalled as much as we have dared and have succeeded in limiting gold shipments to $26 million during the past year.  We think it would be a serious mistake to permit further large shipments at this time.<ref>David Rees, ''Harry Dexter White; a Study in Paradox'', pg. 326.</ref>}}