Analysts at the CIA write that "the National Government remains politically stable and the economy of Taiwan continues gradually to improve. The military establishment is growing stronger, but Nationalist forces alone could not defend their territories against a full-scale Chinese Communist attack."

This National Intelligence Estimate concludes that "the Government of the Republic of China continues to exercise firm political control on Taiwan. With US assistance, an expanding economy has been maintained and the strength of the armed forces has been increased. At the same time, however, the international position of the National Government has declined, causing an increased feeling of insecurity and concern for the future."

A report on Kuomintang efforts for the upcoming national election in Taiwan and the individuals surrounding Chiang Ching-kuo.

The United States' interests in its relationships with China and Taiwan would be best served if Beijing and Taipei could reach some form of accommodation or association that would permit the two parts of China to coexist peacefully. The worst outcome would be a military confrontation that forced the United States to choose whether to provide .assistance to Taiwan or to allow it to be overwhelmed by superior Chinese force. Trends over the past four years have moved fitfully toward an eventual accommodation, and they probably will continue in this direction.

Wu Lengxi, a member of the CCP Central Committee, recalls events in August 1958 when Chinese Communist forces along the Fujian coast began an intensive artillery bombardment of the Nationalist-controlled Jinmen Island. He recalls a Politburo Standing Committee meeting in which Mao states that the bombardment was in part motivated by events in the Middle East.