Commenting on the two-price gold system, the Economic Daily News of March 19 said the cause of the frenzied gold rush has not been eliminated.
The paper said: "The new system can be regarded as only an interim measure. It is not perfect but it is necessary. Its principal value is the providing of time for the United States to adjust its balance of international payments.
"The life of the system should not be protracted. The measure abolishes the seven-nation gold pool and damages the already imperfect monetary system. The pool nations should quickly establish their strong monetary leadership of the world so as to prevent further chaos. Something must be done to strengthen the position of the U.S. dollar.
"The two-price system ends the first battle between gold speculators and the U.S. dollar. Now attention moves to U.S. measures to improve its balance of international payments. The 10 per cent tax increase would be a step against inflation. Gold speculators are watching closely to see whether President Johnson will carry out the seven-point program he announced New Year's Day.
"Economics cannot be separated from politics. The people of Western Europe believe the United States cannot improve its balance of payments situation unless the Vietnam war is ended. This is absurd. However, if the war continues without any U.S. display of determination to win, any escalation will only add to pressure on the dollar. The only solution of the U.S. headache is to win the war quickly."
Commenting on the same topic, the Cheng Hsin Daily News of March 19 said the United States has moved half a step toward dollar devaluation.
The paper said: "If a wide gap occurs between the two prices, new problems and turmoil will follow. No one will sell gold to the seven-nation pool. The holdings of the pool will be rapidly reduced by the unfavorable balance of U.S. international payments that has exceeded US$2 billion annually.
"South Africa is the free world's top producer of gold but it often takes an independent position in international affairs. Other major gold producers are Communists and they are eager to see the collapse of the free world monetary system. They cannot be expected to help the seven nations to tide over the crisis.
"Unless the payment situation is improved, dollar devaluation will be among the first problems facing the next U.S. president."
The Chung Yang Jih Pao (Central Daily News) applauded the two-price decision.
The paper said: "The gold price may rise but the decisions of the London pool nations not to buy gold on the free market will have a limiting effect.
"However, this measure alone cannot cure the weakness of the U.S. dollar. Other financial and fiscal measures need to be taken to curb inflationary pressure and improve the U.S. balance of international payments.
"The Republic of China is a close friend of the United States and has given it all moral and material support during the crisis. In return, the United States should give special consideration to the exports of the Republic of China when it seeks to improve the balance of payments."
United Daily News - Restive Eastern Europe
The Lien Ho Pao (United Daily News) of March 13 linked the Warsaw riots with the liberalization movement in Czechoslovakia.
The paper said: "A succession of anti-Russian movements are sweeping Eastern Europe. The liberalization movement in Czechoslovakia is reaching a climax. Romania has op posed Russia on two occasions recently. In Warsaw, 3,000 college and university students have demonstrated against the Polish government and the Russians.
"The Warsaw clamor reveals the anti-Russian sentiments of Eastern European peoples. Nationalism is deep-seated in Poland and cannot be removed by a quarter century of Communist rule.
"The liberalization movement has unnerved the Russian and East European Communist regimes. The commander of the Warsaw Pact and the foreign minister of Poland visited Czechoslovakia, indicating their concern. The demonstrators chanted 'Long Live Czechoslovakia', indicating the connection with nationalism.
"The Warsaw incident is not a duplication of the Poznan revolt of some years ago. The Poznan workers were seeking better living conditions; the students of Warsaw are waging an ideological war. Even if the students should be suppressed by the armed forces, as were the Poznan workers, the ideological influence will not be obliterated.
"Poland borders Czechoslovakia. If the Czech liberalization movement cannot be curbed, the restiveness of Polish students will continue. The Czechoslovak regime is supported by the armed forces, indicating the liberalization movement is beyond Russian control."
The Cheng Hsin Daily News of March 14 said Russia's position in Eastern Europe is now worse than in 1956 at the time of the Hungarian revolution.
The paper said: "The Peiping-Moscow conflict in 1958 split the Communist bloc and smashed Russia's image as the single Communist leader. The economic renaissance of Western Europe has dwarfed Communist accomplishments in Eastern Europe. The paralysis of the North Atlantic Treaty Organization resulting from French withdrawal has reduced the pressure on the Warsaw Pact bloc and encouraged Eastern European nations to throw off Russian control.
"Russia tried to coordinate its military overlordship with a system of mutual economic reliance. This has induced Eastern European nations to seek economic independence. Romania is the first nation to move in this direction - supported by Bulgaria, Czechoslovakia, Poland and Hungary. The Russians hate the Romanians but dare not treat them as they did the Hungarians. Concessions to Romania have encouraged other satellites to seek equal privileges.
"Romania has steadfastly opposed Russia. It has ignored Russian advice and established diplomatic relations with West Germany. During the Arab-Israeli conflict last June, Romania defied the Russians and continued to maintain diplomatic relations with Israel. Romania walked out of the Budapest conference and refused to sign the Russian-formulated agreement on the prevention of nuclear proliferation.
"The anti-Russia tendency of Czechoslovakia is growing fast. President Antonin Novotny was forced to give up the leadership of the Czech Communist Party. A few days ago, one of his cronies, Major General Jan Sejna, defected to the United States and gave the opposition a pretense to demand Novotny's removal from the presidency. Novotny's downfall marks the destruction of the last Stalinist stronghold and indicates the decline of Communism in Czechoslovakia. On last October 31, the Czech interior minister apologized and promised to pay indemnity to students arrested or injured in street demonstrations. This showed that the Czech Communist Party was bowing to the forces of freedom.
"The 1956 Hungarian revolution was triggered by the workers' uprising in Poland. New demonstrations have been under way in Warsaw with students chanting 'Democracy' and 'Freedom'. Apparently they are responding to the liberalization movement in Czechoslovakia.
"Anti-Communism is strong in Hungary. Under the bloody rule of Janos Kadar, the people are biding their time to rise up. Bulgaria has renewed relations with Turkey and Greece and reinstated the profit system against Russia's wishes. Walter Ulbricht appears to be the most loyal lackey of the Russians. However, he has increasing contacts with West Germany. Most of the people of East Germany want unification with West Germany. This could come to pass overnight."
China News - Toward Asian alliance
The English-language China News of March 11 urged establishment of an East Asia Treaty Organization.
The paper said: "SEATO is defunct but the United States has not yet summoned the hearse to cart the body away.
"One of SEATO's members - France - is wholly out of sympathy with the defense of Southeast Asia and wants the United States to pack up, go home and leave the vast region to the Communists.
"Pakistan is halfway into the Communist camp and no longer a bulwark against Peiping's expansionism.
"Great Britain has done nothing to assist the Vietnam Allies and is going to further complicate Southeast Asia's defense problem by pulling its forces out of Singapore and Malaysia.
"The remaining members of the Southeast Asia Treaty Organization are the Philippines, Thailand, New Zealand, Australia and the United States. They deserve better than they are getting from SEATO. All five have forces fighting in South Vietnam.
"It is time to scrap SEATO and start building a meaningful Asian alliance to protect all of East Asia. If Thailand is threatened in the south, so is South Korea in the north.
'Ten and even five years ago a strong and comprehensive East Asia Treaty Organization could not have been brought into existence. The United States settled for SEATO in the 19505 for that very reason.
"Times have changed. Several East Asian groupings already exist. Indonesia. Malaysia and Singapore have buried the hatchet so deeply that Prime Minister Tunku Abdul Rahman could go to Jakarta for talks with General Suharto.
"A new East Asian line-up should include Korea, Republic of China, Philippines, South Vietnam, Thailand, Malaysia, Singapore, Australia and New Zealand. Whether the United States should be a full or associate member is of small consequence. What matters is U.S. approval and support.
"Probably Japan would wish to remain aloof at this time. Possibly Indonesia would do likewise. One or two abstentions need not prevent establishment of the new treaty organization. Japan and Indonesia could be expected to come along when they saw that the alliance was successful and in their self-interest. A Burma that is firming up its anti-Communism might do likewise. Laos and Cambodia are other prospective members.
"The East Asia Treaty Organization would have many incidental benefits of an economic and cultural nature.
"But the primary obligation would be the prevention of aggression in this pan of the world. This might well apply to the present conflict in South Vietnam.
"Faced by a total array of its Asian neighbors, wouldn't North Vietnam be much more likely to come to the peace table? Wouldn't both the Chinese Communists and the Russians be given pause in their instigation and maintenance of Hanoi's aggression?
"No one denies that obstacles stand in the way of EATO's formation. The biggest of all, however, is stasis or inaction. The successful establishment of the Asia and Pacific Council and other groups shows that the hurdles can be surmounted when those concerned are willing to make the necessary effort.
'The principal requirement is a green light from the United States. This need not be given overtly. Possibly it would be better for the Asian countries to take the initiative. This even could be accomplished through a reorganization and expansion of SEATO.
"The peace and security of East Asia hang in the balance because of the lack of a strong regional defense system. Why not have done with the futile reliance on SEATO and substitute an East Asia Treaty Organization with unity, an anti-Communist alignment and a bite that will give pause to old aggressions and erect barriers against new ones?"
The Lien Ho Pao of March 18 urged the United States to support such an alliance.
The paper said: "Asian countries have shown their support of an Asian-Pacific collective security organization. Such countries as the Republics of Korea and Vietnam, the Philippines, Thailand and Malaysia have called attention to the need for a military alliance.
"However, there are differences about details and immediately implementation would be difficult.
"A few problems remain to be clarified and solved. First, what should be the size of the organization? Second, what is to be the function of the organization? Third, what should be the channels and proceedings for establishment of the organization?
"Undeniably, the U.S. view is important in determining size and details of the alliance. So far the U.S. attitude has been unenthusiastic and discouraging.
"The present situation indicates that if the free Asian countries cannot be united so they will fight shoulder-to-shoulder with America, they will be destroyed by the Communists one after another. The United States cannot save a divided East Asia."
The English-language China Post urged anti-Communist countries of Asia to take the initiative in establishing the new alliance.
The English-language paper said: "Efforts of the peoples of free Asia to cope with Communist aggression have not been very successful largely because SEATO, the existing military alliance, has practically no teeth. France has really withdrawn from SEATO, although it still remains a member in name. Great Britain is pulling out its armed forces from Asia. Australia and New Zealand cannot do much to strengthen the alliance militarily. Despite their well-trained armed forces, the Republics of China and Korea are not members of SEATO.
"We cannot see any reason why the freedom-loving peoples of Asia should not form a new military alliance to replace or strengthen SEATO. General Prapass' current tour of four Asian countries is said to be aimed at sounding them out on the formation of a new military alliance. Such an alliance has long been needed to counter the Communist Chinese menace. All anti-Communist countries of the region, including the Republic of Vietnam and Japan, should be included.
"Empty talk can never bring a new Asian military alliance into existence. One or more anti-Communist countries must take the initiative. The free China government is one of those could take the lead."
Cheng Hsin Daily News - Use of Asian troops
Commenting on the worsening situation in Vietnam, the Cheng Hsin Daily News of February 26 urged the United States to use more Asian troops to win the war as soon as possible.
The paper said: "President Lyndon B. Johnson is considering a call-up of 50,000 reserves to meet the emergency in Vietnam.
"We suggest it would be preferable to use the armed forces of the anti-Communist Asian nations.
"The main force for an anti-Communist war in Asia should come from the Asians. As a good friend, the United States should support this effort.
"In Korea and Vietnam, the American troops have carried a larger share of the burden than the Asians. This is wrong. The Asian nations should be helped to fight their own war so as to win a victory and assure permanent peace.
"If the purpose of U.S. troops in Vietnam is not to win the war, there is no purpose in sending more. The war will be prolonged.
"In view of the fast-changing situation in Asia, an overall review of U.S. strategy is urgently required.
"An Asia-Pacific defense system should be established to enable free Asians to protect their own democracy and freedom with their own forces.
"This is the only way in which the United States can gradually lay down its heavy burden in Asia.
"The government of the United States should pay more attention to the views of the Asian nations, especially those of the Republic of Korea and the Republic of China."
Commenting on the same subject, the China Post urged the government of the United States to give more heed to the advice of military experts.
The paper said: "The U.S. House Armed Services Subcommittee has called for unleashing military forces in a combined land-sea-air offensive in Vietnam, declaring that the United States has no timetable for winning the war. 'The enemy cannot be defeated within any acceptable time frame,' said the subcommittee in its interim report, 'so long as we continue to fight a primarily defensive war. Our slow rate of military progress has encouraged North Vietnam to reject our efforts to bring about peace negotiations.'
"The United States is obviously pursuing a policy of refusing to win. This defensive war in which the United States is bearing the brunt of the fighting has proved to be a double failure so far as the American objectives are concerned. Fighting has been going on in areas quite close to Saigon, and the Communists have been perpetrating terrorist acts in the Vietnamese capital as often as they please.
"Saigon is still in danger. The Communists are throwing more men into the battle and have threatened to launch another offensive to take the city. In the meantime, fighting is continuing to rage in other parts of South Vietnam. For the Americans the situation at Khe Sanh is especially perilous. The Communists are reported to be digging trenches 300 meters from the defending Marines, who have to depend on supplies air dropped to them.
"The defensive war in Vietnam is also a failure in the sense that the Allied efforts have not succeeded in compelling the Hanoi regime to come to the conference table. It refuses to acknowledge defeat for the simple reason that it has not been defeated. The United States now finds itself in a dilemma. What is Washington going to do about it? The only way out is to do as the House Armed Forces Subcommittee has urged. The United States must unleash its military forces in combined land-sea-air offensive in Vietnam to crush the Communists. In order to achieve a decisive military victory the 17th Parallel must be crossed without hesitation.
"The House Armed Forces Subcommittee is right in claiming that the United States will not win the war in Vietnam until it lets its military leaders fight it."