893.00/15059: Telegram
The Chargé in China (Atcheson) to the Secretary of State
[Received July 17—4:45 p.m.]
1136. Embassy’s 1125, July 8, noon. Admiral Yang, Chief of Chinese Intelligence, has been very helpful to our Naval and Military Attachés and has inspired them with confidence in his judgment and in the general accuracy of his statements (he frequently contradicts those of the military spokesman). He is often called upon in high places to give the determining opinion in regard to developments. My personal relations with him are in nature of those of an old friend of many years standing. We accordingly consider that information and comment from him are worth attention.
I have had opportunity to mention to him casually that we have heard rumors of possible trouble with Chinese Communists. He confirmed the report that considerable bodies of troops had been moved into Shensi but stated categorically that Central Government forces had no intention of attacking Communists. He said that Government felt that “blockade” was necessary to prevent expansion by Communist troops and border government and that there was no question that the Communists continued to be under influence from Moscow, thus incidentally throwing into relief the continuing suspicions of Russian motives which exist in many important quarters here. He expressed the opinion that an open Kuomintang-Communist conflict would not occur at any time pending conclusion of the war but intimated that he felt such conflict was almost inevitable after the war.