893.00/11–1845: Telegram

The Counselor of Embassy in China (Smyth) to the Secretary of State

2011. Below is given summary of Military Attaché’s report for week ending November 17:

Civil war continued in northern and central China. Reports of troop movements and clashes reached new high, as Communists intensified attacks against Kueiswei and Paotou in Suiyuan and seemed to be enlarging activities in Hon an and Shantung.

Communists were meeting with stiff resistance in Suiyuan from 12th War Zone troops of Fu Tso-yi and it appeared that Eighth Route Army Commanders had underestimated Central Govt strength in that region. Forces of Fu Tso-yi along Peiping-Suiyuan railway are serious threat to Communist security in northeast and bitter, prolonged struggle for position in Suiyuan seems inevitable. Communist forces continued operations against rail communications in Shantung.

Communists are penetrating all parts of Honan and northern Hupeh but have failed repeatedly to attain objectives in Siangyang–anchang area. Communist determination in this area may be directed primarily to diverting Central Govt forces moving north, and/or to penetrating to strategic points on Yangtze River between Hankow and Chungking. Communist operations elsewhere in Hupeh-Honan area continue to be aimed at Central Govt communications along Peiping–Hankow and Lunghai Railways. Central Govt, significantly, has [Page 638] announced intention to strengthen considerably defenses of Kaifeng. capital of Honan, and to move 100th Army now in Hengyang to northern Honan in order to replace losses in that area; it is reported by Communist sources that Central Govt is developing new offensive in this region involving seven divisions.

Central Govt announced November 7 defeat of three of its armies by Communists in northern Honan and capture of two Generals, but cautioned people against believing Communist rumors about incident. During past week it became evident that Central Govt Commanders had abandoned their attacks on Eighth Army and that many of Central Govt units involved had laid down their arms. General Kao Shi-hsun, Commander of Central Govt’s New Eighth Army reportedly captured by Communists, is said by Communists to have issued circular telegram announcing organization of “Democratic National Reconstruction Army” with policy of opposition to civil war and demand for abolition [coalition?] govt. Real importance of this incident cannot be determined pending further clarification of facts, but implied significance is clear; a tendency for such defections to spread would weaken bargaining position of Central Govt.

Smyth