July 16. President Chiang ordered the formation of a "Planning and Research Committee on National Recovery". Its members were to be picked from among the National Assemblymen and well-known personalities with Vice-President Chen Cheng as the Chairman.
July 17. Brig.-Gen. John M. Sessums, Commannding General of the 13th Air Force in the , arrived in for a two-day visit to Free China.
July 18. Vice-President Chen Cheng warned the free world not to depend on an internal crackup of the puppet Peiping regime or a "Titoist" movement to bring peace to .
July 19. In a speech delivered at the Dr. Sun Yat-sen's memorial service of the Kuomintang Headquarters, Finance Minister P. Y. Hsu disclosed that the budgetary deficit for the past year dropped to a negligible three per cent as compared with the 30 per cent in 1950.
July 20. Foreign Minister George Yeh disclosed that the US and Chinese Governments were continuing negotiations for a bilateral security pact.
Rear-Admiral Frederick N. Kivette, new Commander of Task Force 72 of the 7th Fleet, and his predecessor Rear-Admiral Truman J. Hedding arrived in Free China for a two-day visit.
Upon his arrival from Washington Chinese Ambassador to the Koo said that any attempt to seat the regime in the UN would be definitely defeated.
July 21. In a statement commenting on the newly-signed Indo-China cease-fire accord, Foreign Minister George Yeh declared that it was possible for the Reds to seize not only but also , and other Southeast Asian countries, if the UN fails to extend a helping hand to the people of Indo-China.
Martin Wong, Secretary General of CUSA, disclosed that Free China received a total of US$396,800,000 of economic aid from the in the past four years.
Real Aamira1 Truman J. Hedding, former Commander of Task Force 72 of the 7th Fleet, was decorated with the Cloud and Banner Medal by the Chinese Government for the former's contribution to the Chinese-American mutual defense of .
July 22· The Executive Yuan held its 353th meeting and heard a special report made by Ambassador to the US Dr. Wellington Koo on the current international situation and the present American policy toward China.
July 23. The Chinese Government conferred a series of diplomatic medals on President of Chile Carlos Ibance del Campo, Chilean Foreign Minister Toeias Barros Ortiz, Vice Foreign Minister Celso Vargas Mardones, and Protocol Chief of the Chilean Foreign Office Ouis Cubillos Achurra at , for their contribution to the promotion of friendly relations and closer cooperation bet wean the two countries.
July 26. In a 50-minute report on the international situation made at Dr. Sun Yat-sen's weekly memorial service of the Kuomintang Central Committee, Ambassador to the US Dr. Wellington Koo said that the American Government would give Free China more assistance for the fight against the Communists as the US had recognized Free China as one of two strongest and truly anti-Communist nations in the Far East.
Maj.-Gen. R. H. Pepper, newly appointed Commander of Marine Corps of the US Pacific Command, arrived in for a two-day official visit.
Carrier-based US Navy planes on a "mission of mercy" off the China coast shot down two Chinese Communist fighters in an air battle provoked by the Reds.
July 28. US Ambassador to Thailand William J. Donovan arrived in from via Hongkong for a three-day tour of Free China.
July 29. Chinese Air Force planes crossed the Taiwan Straits and dropped tons of leaflets on major cities along the Fukien coast and in .
July 30. President Syngman Rhee of the of declared in that he had asked the to make a policy decision now to start preparing for the liberation of the Chinese mainland.
The Legislative Yuan resolved that all Chinese nationals residing in foreign lands were to be exempted from compulsory military service but should be permitted to enlist in the army voluntarily.
July 31. The of the Asian Peoples' Anti-Communist League was formally inaugurated with a membership consisting of 432 organizations of political parties, civic groups, popular representative organs and educational institutions.
August 1. The Chinese Air Force carried out another leaflet-dropping mission over the coastal cities of the mainland.
The Chinese Navy sank one Chinese. Communist warship and heavily damaged another in a sea battle off the coast.
August 2. The Council for United States Aid announced that a total of 226,679 metric tons of aid materials valued at US$41,600,000 had been shipped to Free China in the six month period from January through June, 1954.
The Fourth Plenary Session of the Seventh Central Committee of the Kuomintang opened in the suburbs with President Chiang presiding over the meeting.
August 3. A five-warship and 800.man South Korean goodwill mission arrived at for a four-day visit to Free China.
August 5. Chang Li-sheng was elected Secretary-General of the Kuomintang Central Committee in the closing meeting of the Committee's fourth session to succeed Mr. Chang Chi-yun, who is now Minister of Education.
The Overseas Affairs Commission disclosed that fifty-six companies financed by overseas Chinese had been authorized by the Government to establish their factories in .
August 6. The Ministry of Foreign Affairs announced that the Republic of China had been reelected to membership on three committees of the UN Economic and Social Council.
August 7. The US Foreign Operations Administration disclosed that US$1,000,000 worth of cotton, which was warehoused at Haiphong as a part of American economic aid to supply textile mills in northern Vietnam, had been moved from Indo-China to Taiwan to prevent it from falling into Communist hands.
August 8. Two American aid destroyers, which had been renamed and Banyan2, steamed into Chinese waters and anchored at a southern naval base.
August 9. In a speech delivered at the seventh plenary session of the Taipei Editors' Association Vice-President Chen Cheng said there was no possibility of the outbreak of a third world war if Free China launched its counter-attack against the Red-held mainland right now since Soviet Russia only cared to choose an advantageous moment to start a war of her own.
Free 's warships sank three Red gunboats and five armed junks in a daring raid against the Communist-held port at .
August 10. Roger Steffan, Chief of the eight-man American Economic Advisory Group to Free China, arrived in and declared that the main purpose of the Group was to assist the Chinese Government in developing an economy solvent enough to maintain a strong army at this outpost of the free world.
August 11. Dr. Hsieh Shou-kang, newly appointed Minister to the Holy See, left for Hongkong en route to the to assume his post.
August 12. Rear Admiral Hugh H. Goodwin, Commander of American naval forces in the , declared that any attack on by the Chinese Communists on the mainland would result in US participation in the conflict.
General Kwei Yung-ching, Chief of the General Staff, died of a sudden heart-attack at his residence in .
August 13. General Peng Meng-chi, Deputy Chief of General Staff, was appointed by President Chiang as Acting Chief of General Staff to succeed the late General Kwel Yung-ching.
August 14. President Chiang officiated at a ceremony in the Air Force Headquarters in celebration of the 15th anniversary of Chinese Air Force Day and awarded decorations to nine CAF officers for their meritorious services to the country during the past year. I
President Chiang formally nominated Mo Teh-hui and Wang Yun-wu as President and Vice President of the Examination Yuan, respectively, to succeed Chia Ching-teh and Lo Chia-luen, who tendered ·their resignations on May 20 this year.
Liang Shang-tung was elected Vice-President of the Control Yuan when he received 52 out of the 91 votes cast by the members of the yuan.
Genual Earle E. Partridge, US Far East Air Force Commander, and Major General , Air Defense Commander in , arrived in for a three-day visit to Free China.
The Taiwan Provincial Assembly adopted a NT$1,600,925,920 provincial budget for the fiscal year beginning from July 1, 1954.
August 15. The New York Times commented that " is right now enjoying the highest degree of freedom that it has had in centuries."
President Chiang sent a cable to President Syngman Rhee extending his congratulations to the Korean Government and people on the occasion of the 10th anniversary of the 's national Independence Day.
In a radio broadcast General Wang Shu-ming, Commander-in-Chief of the CAF, called upon all Communist Chinese pilots to desert the Communist Air Force and join the CAF to fight against the Communist tyranny.