On March 1, 1947, the "Committee to Investigate the Cigarette Confiscation Incident" was formed to deal with the events of February 27 and the killing of citizens on February 28. In a broadcast that afternoon, Chen Yi said: "The government and citizens have formed a committee with five officials representatives participating." On March 2, the committee's name was changed to the "Committee to Deal with the 228 Incident" and expanded to include representatives from all sectors. On March 4, the Committee was reorganized a second time and expanded to include local committees throughout the province. Committee guidelines were passed on the 5th, and in order to handle the events of February 28 and institute government reform, eight items for government reform were passed and sent to the government in Nanjing.

On the morning of March 7, Chen Yi asked the Committee to make proposals on which measures to put into effect. On the same day, the Committee put forth 32 proposals and 10 demands, which Chen Yi refused. After Nationalist troops arrived in Keelung on March 8, Chen Yi took a 180 degree turn in attitude. Troops spread out through the streets with Committee members bearing the brunt. Many were killed or injured.

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