Very interesting talk at Peter Lin’s 【林暐] dinner. Present: D. Y. Ling 【凌道揚], C. M. Li 【李卓敏], Tsai Cheng-hsin 【蔡承新?], Dr. James Shen 【沈克非], Peter Lin, F. S. Wang 【汪伏生], and two ladies. Agreed: American loan is essential; to get it, army and financial reforms are necessary. In regard to the army, one should pick out certain units for beginning, such as Liao’s 【廖耀湘] army group in Manchuria and Fu Tso-yi’s 【傅作義] group in Northern China. None could think of a good group in the Yangtze Valley to serve as nucleus. As regards finance, simplification of taxes and change of personnel are the keys. If C. 【蔣中正] and the U.S.A. jointly back up the program, it would succeed.