893.00/6–2146: Telegram
The Counselor of Embassy in China (Smyth) to the Secretary of State
[Received June 21—7:10 a.m.]
1019. Despite mutual Kuomintang-Communist accusations of violations, temporary truce agreement Manchuria has been fairly well maintained. Executive Headquarters Truce Teams Manchuria increased from 4 to 8 (summary M[ilitary] A[ttaché’s] report for period 11 June to 18 June, 1946). Indications are that problems most difficult of solution will be (1) redistribution rival troops, (2) ratio of Central Govt, to Communist troops, (3) control of Manchurian cities and (4) American mediation powers.
Situation Shantung continued tense. At Tsingtao Central Govt. forces reported not in excess 4,000. Communist troops Tsingtao area variously reported from 30,000 to 100,000. Tsingtao situation eased somewhat 18 June by Communist commitment that no attack would be made on city.
Indications are that Communist military supremacy Shantung has been established at least for time being, possibly as Communist counterbalance to Central Govt. in Manchurian negotiations.