July 1, 1946 Dear Walter: I have just had a letter from Gregg in Peking, dated June 11, and sent after he and members of his commission - Dean Burwell of Harvard and Dr. Loucks - had been a month in China. He makes two main points: 1. The economic dislocation in China is so vast that it will be impossible to open the PUMC this fall - as our Chinese friends had so fondly hoped. When it can be opened he does not say. 2. The relations of the PUMC with the other medical schools of China "need considerable change" - in what direction Gregg does not specify. He goes on to make this illuminating comment: "We are of course working on the assumption that a case has to be made from the ground up for anything we recommend. But I can't escape the realization that if we were to close the PUMC completely we could start no other undertaking in China free from the distrust and forfeited confidence which would attach to the Rockefeller name as a result. Nor could any completely new program be started without large expense and the prospect of long investment before returns would come in that would compare with the trained personnel, the equipment, the influence and the good will of the "effort started 25 years ago. . . There is no doubt of the extraordinary value of the PUMC's performance and its promise for the future. Nothing worries me as much as the feeling that the Trustees of the Foundation may be reluctant to turn over to the CMB the necessary additional funds without which the PUMC could not effectively be started." Sincerely yours, Raymond B. Fosdick (Dictated by Mr. Fosdick and signed in his absence.)