The declaration of the People's Republic of China in October 1949 presented American foreign policy officials with two dilemmas: How to deal with the communist government on the mainland and what to do about Chiang Kai-shek's Nationalist regime on Taiwan. By 1950, these questions were pressing hard upon U.S. civilian and military planners and policy makers, for it appeared that the Red Army was preparing to invade the island. Most observers believed...