893.00/12–1344: Airgram
The Appointed Ambassador in China (Hurley) to the Secretary of State
[Received December 28—2 p.m.]
A–102. Following information based on telegram dated December 4 from Ludden to Headquarters, Chungking:
The Communists have limited spheres of influence in Liaoning and Jehol; further expansion in Manchuria not feasible at present. Underground activities progressing behind Japanese lines in central and south China, especially in former Communist areas in Fukien, Chekiang and Kiangsu. In north China, Communists occupy positions from which, with modest supplies of small arms, ammunition and demolition material, they could seriously interfere with Japanese communications.
There is no reason to doubt Communist contention that North China people feel they have been deserted by Central Government and will not accept an unregenerate Kuomintang. The Communists do not anticipate civil war but have complete confidence in their ability to defend themselves against the Kuomintang if attacked. Their war planning is concentrated on offensive action against the Japanese when circumstances and equipment permit. They consider such action the best means of presenting the Communist case before China and world opinion. Top leaders are capable, tough and intelligent and undoubtedly will play an important role in future of China.