893.00/12886: Telegram

The Chargé in China (Gauss) to the Secretary of State

560. Department’s 374, December 4, 8 p.m.44 As the result of continued pressure from the north and east by small body Government forces which made the position of communist troops in Kiangsi untenable, the latter began on October 21st an attack against Kwangtung and Kwangsi forces stationed in south Kiangsi. These communist forces numbered perhaps 60,000. The Kwangtung and Kwangsi troops were forced to retreat after suffering considerable losses with the result that the communist forces broke through their lines, captured several important places in south Kiangsi and advanced westward across south Kiangsi and north Kwangtung. One group detached itself and proceeded northward in west Kiangsi in what was apparently a perspicuous maneuver. Its intentions are not definitely known. The remaining forces, reported in the press to number at least 40,000, continued to advance slowly westward, notwithstanding the opposition of the Hunan and Southwest troops, until the latter’s main line between Chenhsien (south Hunan) and Lok-chang (north Kwangtung) was reached in the first week in November. The communist forces continued to advance and captured Ichang and other south Hunan hsien cities west of that line, as well as strategic points in north Kwangtung. With the continuing advance, however, places captured were abandoned.

The main theatre of battle has now shifted to the Hsiang River valley between Kweilin, the capital of Kwangsi, and Ling-ling in southwest Hunan. According to reports, the main body of the communist forces is succeeding in penetrating to Government barrier in that area while the communist vanguard is nearing the Kweichow border. Two armies of the National Government, by report totaling eight divisions, have been sent into Hunan to assist in intercepting [Page 335] communist forces advancing toward Kweichow, but it seems probable that the latter will reach their objective, west China, with their main strength intact.

After the beginning of the movement of communist forces westward from Kiangsi, Government forces captured remaining hsien cities there which had been in the hands of the Communists without any real resistance being offered. It would seem that only small guerrilla bands remain in Kiangsi with the exception of powerful important communist forces in the extreme south of Kiangsi and the already mentioned group which began a northward movement in west Kiangsi whose whereabouts and objectives are obscure. It is thought that the activities of the communist forces will hereafter be directed chiefly toward west China (some guerrilla bands have moved eastward in Fukien and Chekiang but their activities would become important only in case they could enlarge their numbers as a result of unfavorable economic conditions existing in those two provinces).

It is believed that the communist forces moving westward intend to join up with the Red forces (some 10,000) now principally in northeast Kweichow and northwest Hunan to establish a new base in the Kweichow-west Hunan-south Szechuan area. There is the danger that they might eventually succeed in amalgamating with the communist forces in northern Szechuan in an attempt to control much of west China. (The communist forces in Szechuan have been comparatively quiet since their advance in September of this year, although news reports indicate that they may be making observations for an advance likewise in the direction of Wan-hsien and/or west in the direction of Chengtu.

The future depends largely upon the efforts of the Government. In addition to the sending into Hunan of the two armies mentioned above, one Kansu division and one Shensi division have been moved to the north Szechuan border. General Liu Hsiang, leading Szechuan militarist, is at present in Nanking for discussion with General Chiang Kai-shek of measures to meet the situation. From current reports, it would seem that he will obtain some financial assistance. It is doubtful if the National Government will for the present at least send any effective forces into Szechuan because, (1) of the disinclination of Szechuan militarist[s] for such a movement, and (2) of the new situation created toward elimination, as a result of the movement of communist forces out of Kiangsi, of the buffer area as heretofore existed between the sphere of the National Government and the sphere of the Southwest. By the elimination of the buffer area a new political situation of importance has developed as with it has been removed the chief physical barrier to the bringing of pressure by the National Government upon the Southwest. At present conversations continue [Page 336] between representatives of Nanking and the Southwest looking toward a more satisfactory understanding. It is doubtful that General Chiang Kai-shek would move any considerable number of troops westward until the situation existing between him and the leaders of the Southwest has been clarified. Meanwhile the National Government is faced with the problems of economic rehabilitation of the recovered areas.

Gauss
  1. Not printed.