Ever since the communist victory and establishment of a People’s Republic (PRC) on the mainland, China has greatly influenced the basic tenor of American policies in Asia. For the United States, the fact of China going communist was indeed a traumatic experience as China had a special place in the American psyche.1 Historical links of trade, missionary activities, intellectual curiosity, extra-territoriality and war-time camaraderie had brought the US closest to China in Asia. These links disintegrated in the aftermath of the communist victory.