TOP SECRET (d) Although the Chinese Communist Army would be able to collect the necessary troops and shipping to attempt an invasion of Formosa, it has inadequate naval and air forces to protect its passage. Providing they remain loyal the Nationalist naval and air forces would be capable of destroying the major part of an invasion fleet and those troops which landed would be unlikely to be able to retain their foothold. (e) The Chinese Communists are not at present in a position to make a successful opposed invasion of Formosa.