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James J. Drummey writes in The Real McCarthy Record:

It was also during the mid-to-late Forties that communist sympathizers in the State Department played a key role in the subjugation of mainland China by the Reds. “It is my judgment, and I was in the State Department at the time,” said former Ambassador William D. Pawley, “that this whole fiasco, the loss of China and the subsequent difficulties with which the United States has been faced, was the result of mistaken policy of Dean Acheson, Phil Jessup, [Owen] Lattimore, John Carter Vincent, John Service, John Davies, [O.E.] Clubb, and others.” Asked if he thought the mistaken policy was the result of “sincere mistakes of judgment,” Pawley replied: “No, I don’t.”

What was the actual state department policy in China during the Chinese Civil War that was criticized here?

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    Some elements: state department refused to continue thepolitic of military formation and support to nationalist armies that went on during ww2. It refused to take action of retorsion when some American militarymen were ambushed by communists. 1945-1949 was a long period of inaction from USA while Communists were overcoming Tchang Kai Chek with support from the Russian armies in Mandchuria (secured rear bases, hardware given, training...) Feb 20 at 14:45
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    It was mostly blame game for great geo-strategic defeat. It should be noted that even US military did not have much confidence in ability of Nationalists, i.e. considered them corrupt and ineffective, therefore they were reluctant to help them. This started in WW2 when Chiang Kai-shek squandered lot of American goodwill.
    – rs.29
    Feb 20 at 18:14

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