To begin this review, here are 3 brief instances that exemplify why the OSS failed in China. General Donovan's chief of Far East projects, Carl Hoffman, had little or no knowledge of that part of the world, nor any military experience. In his book A DIFFERENT KIND OF WAR, former SACO / U.S. Naval Group China commander, VADM Milton Miles relates his first encounter with Hoffman, who was on the phone, cancelling a requisition Miles had authorized. Not only was he violating the chain of command, Miles noticed that his military insignia was on upside down. A visit with Donovan settled the matter, but, as Miles realized later "I won that battle, but the victory was a costly one for I thereby made an enemy."
One of SACO's young naval officers was in the field with his Chinese guerrillas on a mission when they spotted some coolies carrying what they assumed to be a local warlord inside a shoulder-borne sedan chair. They walked over to investigate. The coolies put down their burden, the curtains parted and out stepped a perfectly uniformed man who informed them that he was the OSS officer in charge of the area.
Richard Heppner was Donovan's man in the CBI so Miles invited him to his HQs near Chungking for a meal. As Miles says in his book: "He refused my invitation because he was 'not going to eat with chopsticks like a god-damned Chinese.'"
These examples of what author Maochun Yu calls the "OSS culture" encapsulate the arrogant, ethnocemtric attitude of Donovan's organization. It ought to be the mission of intelligence services to provide military commanders with timely information on enemy intentions, movements, etc. Generalissimo Chiang Kai-shek was supreme and theater commander in China. General Tai Li was his intelligence chief and Director of the Sino-American Cooperative Organization (SACO). Captain Milton Miles was SACO's Deputy Director. Besides coastwatchers, weather stations, intelligence networks and mine warfare units, SACO operated far-flung camps where US Navy and Marine personnel helped train Chinese guerrillas for missions against Japanese forces. Tai Li and Miles worked together on a cooperative basis. Miles had served in China before the war; had traveled the land and learned the language. He and Tai Li were an effective team and their men were effective against the enemy.
Donovan had the bizarre notion that he could operate in a foreign, allied country with complete autonomy and he only countenanced Miles as his OSS chief in China until he could manipulate conditions for his ouster, which he did. This was more important to him, seemingly, than defeating the Japanese. Then you had OSS men working directly with Mao's communists in Yenan as part of the Dixie Mission. And of course Donovan didn't know it at the time, but Duncan Lee, his Secret Intelligence chief for Japan & China, was in fact, a Soviet agent as VENONA documents have revealed.
And what happened when OSS finally was able to operate in China per Donovan's desires? They duplicated successful, ongoing SACO operations without the support of the Chinese. Translation: they failed.
This book is a cautionary tale of how not to run intelligence operations in an allied country during wartime.