893.00/15067: Telegram
The Chargé in China (Atcheson) to the Secretary of State
[Received July 23—12:41 p.m.]
1173. Embassy’s 1136, July 9, 4 p.m. According to Admiral Yang, Chou En-lai is now in Sian talking with General Hu Tsung-nan. Admiral Yang continues in his opinion that fighting will not break out as the Government realized that hostilities are not desirable from its point of view and as the Communists are not strong enough to take offensive action. He stated that, however, “some” Central Government troops have been moved into position as a precautionary measure.
According to Communist sources here, Central Government troops at one place recently fired several rounds of trench mortar shells at Communist outposts and were engaged in making reconnaissance of the topography of the region.