740.00119 PW/3–2346: Telegram

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

550. Summary Military Attaché’s report for week ending March 23.

Indications accumulating that Russians intend evacuation Changchun and possibly Harbin. Meanwhile Communists have occupied important positions along Mukden–Harbin railroad and may succeed in occupying Changchun in event Russian withdrawal. Central Government has been building strength rapidly in Mukden area and now reported to have 4 to 5 divisions in city and vicinity.

North China remains relatively quiet with truce teams experiencing no more than normal difficulties in implementing truce agreement. Particular success in Shantung where communications are being restored and restrictions on trade and movement of individuals being lifted.

No marked improvement Shansi where clashes between Yen Hsi-shan and Communist troops continue to be reported. Chinese G–2 continue to report arrivals Communist reinforcements Shansi and serious trouble may develop.

First echelon 71st Army troops from Shanghai arrived Chinwangtao 18 March.