740.0011 P.W./6–1645: Telegram
The Ambassador in China (Hurley) to the Secretary of State
[Received 9:15 p.m.]
997. Following is summary of M[ilitary] A[ttaché]’s report for week ending June 16:
Nominal activity was reported during week. Enemy withdrawal continued and grouping in Shanghai–Hangchow area was increased and assumed more definite pattern. According to Chinese intelligence, enemy troops in this area comprised 1 armored division, 2 independent brigades and 7 infantry divisions. In eastern Honan enemy registered small gains west of Hsihsiakou. In Paoching area, Japanese position remained virtually unchanged. There was no contact with opposing forces. Main enemy strength seemed to be located between Paoching and Hengyang. In Kwangsi–Hunan area, enemy withdrawal northward continued; lines of communication and important installations were being destroyed, and puppet troops were left behind as holding forces. Ineffectiveness of puppets is well known, however, and such action amounts to indirect abandonment. For the second time Ishan was evacuated by the enemy and reoccupied by Chinese forces. Japanese forces continued to withdraw from Ningpo–Wenchow area. In Kwangtung, Japanese troops in several columns totaling about 25,000 moved northward toward Kiangsi frontier [Page 122] and occupied several large towns. As indicative of strategic importance of Canton area in enemy defense system, recent reports show that there are about 135,000 enemy troops concentrated in Kwangtung; it may be assumed that all necessary steps will be taken to strengthen their position there. General Yu Han-mou’s 7th War Zone headquarters is located at Lungnan, on the path of the enemy approach. Should his forces be routed, that would remove potential Chinese threat; it would also gain for the enemy direct control of communications between Swatow and north Kwangtung and place at their disposal the rice crop of the region.
According to most recent Central Govt report, an estimated 4 to 7 thousand Communist troops entered first war zone east of Loyang on May 26–7 and advanced about 65 miles southwest in two columns. The Communist–Central Govt situation seemed to continue to be mostly a battle of words with each contestant attempting to place on the other responsibility for clashes.