893.00/15307: Telegram

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

487. Drumright in telegram from Sian March 18 states report current there that Communists have recently transferred many troops [Page 383] back to occupied North China from Yenan because of food shortage North Shensi.

Informed Central Government official states Lin Pai-hsu, chairman Yenan border government, left Yenan March 14 enroute Chungking for discussion Kmt–Communist reactions (Embassy’s 258, February 8, 3 p.m.) and that situation is improving.

It is reliably reported foreign correspondents will leave Chungking enroute Communist area about April 2 (Embassy’s 456, March 11 [10], 4 [7] p.m.), although no public announcement yet made.

Gauss