The Counselor of Embassy in China (Smyth) to the Secretary of State
[Received 1:20 p.m.]
925. Summary M[ilitary] A[ttaché’s] report for period 29 May to 3 June: National Govt, forces reached Kirin 28 May and have fanned out north, northeast and southeast for distances approximately 15 miles each direction. North of Changchun Govt, forces have reached south bank Sungari River.
Chinese G–2 doubts ability Communist forces hold north bank Sungari River due inferiority numbers and equipment. According same source, Sungari River already crossed at Kirin and good road now exists over which Govt, forces can move on Harbin.
Situation southeast Jehol reported generally quiet. Chinese official sources state it will take considerable time repair Communist damage to Pingchuan–Peiping Railway.
Anshan occupied by Communists on 24 May but retaken by Govt, forces on 30 May.
Informed observers present situation Manchuria credit Communist forces with capability making serious harassing attacks against long, and in many areas poorly defended, supply and communication lines of Govt, forces. Speculation has also risen as to Govt, capability replace arms, equipment and ammunition originally supplied by US, and amount of which is limited. So far as known no facilities in China for manufacture these items in appreciable quantity.
Press reports that agreement was reached on 27 May between Pacification Commissioner for Shantung and Commander Communist New Fourth Army for cessation hostilities Shantung have not been confirmed officially. Situation Tsinan, however, seems less tense although Communist forces continue occupation of points on railway east of Tsinan.