893.00/3–1546: Telegram

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

495. Situation Manchuria shows little change. Central Government showing increased concern regarding Russian intentions in northeast. Central Government sources continue to report increase Russian garrisons Dairen area and northern Manchuria. Some sources report Chinese Communist strength northeast in excess 300,000, including 7 fully equipped divisions, and continued reinforcement from Shantung.

Sporadic Central [Government]-Communist clashes reported in Jehol and Shansi. Shantung quiet, with Communist concentrations vicinity Central Government held areas, notably Tsinan. In general North China situation shows steady improvement.

Water lift of new First Army, Canton to Chingwangtao, continues. Lift of 71 Army from Shanghai should commence soon.

Second war zone report states approximately 11,000 troops Jap First Army still under arms in Shansi and employed to guard and repair railroads.

Smyth