“The United States Government,” President Harry S. Truman announced on 5 January 1950, “will not pursue a course which will lead to involvement in the civil conflict in China.” Historians generally agree that President Truman meant what he said. American policy after the summer of 1949, writes Tang Tsou, was “to avoid, as far as possible, any further involvement in the Chinese civil war and to allow events in China to unfold themselves.” The Truman administration ruled out the use of force to prevent the fall of Formosa; non-recognition of the Communist government was adopted as “a temporary measure,” due to Republican pressure and the hope of gaining concessions from Peking. The outbreak of the Korean War in June 1950, observes Lyman P. Van Slyke, “brought to a sudden end the policy that the administration had followed for two years, and committed us once again to involvement in the Chinese civil war.” The United States assumed a protective role towards the remnants of the Nationalists on Formosa and became the implacable foe of Peking. This article, a study of a commercial airline's participation in a major diplomatic and legal controversy during the last phase of the Chinese civil war, will suggest that there is reason to doubt, or at least to modify, the traditional interpretation of American policy towards China between late 1949 and June 1950.