5. China is not capable of making any naval contribution to the Allied war effort, or any substantial economic contribution. 6. The morale and political value of China as a member of the United Nations is out of all proportion to her material contribution. Her resistance adversely affects Japan's prestige and morale and vitiates Japan's propaganda claim to be freeing Asia for the Asiatics. PART II. THE EFFECT OF A CHINESE COLLAPSE 7. The collapse of China is unlikely unless Chiang Kai-Shek is eliminated.