The Counselor of Embassy in China (Smyth) to the Secretary of State
[Received July 7—6:17 a.m.]
1099. No important changes in military situation but charges from both sides of violations of truce agreements continued. (Summary M[ilitary] Attaché’s] report period 27 June to 5 July.) Press reports carried announcement by Commanding General National Forces Northeast that those forces would not attack Communists Manchuria despite lapse truce agreement.
According press reports, situation Weihsien area of Shantung, Communists have been offensive, eased considerably 30 June. Commanding General Marine forces Tsingtao reports Chimo recaptured by Nationalist forces 2 July.
In Shansi Communist forces reported by press attacking Tatung since 22 June.[Page 1309]
Expected that General Ho Ying-chin will depart for US shortly to assume post chief Chinese Military Mission and Chinese representative military staff section United Nations Security Council.
Unconfirmed reports have been current that General Hu Tsung-han, now commanding first war area at Sian, would replace General Tu Yu-ming as Commander Nationalist forces Manchuria.
Summary of reports from reliable sources show that 80 percent of all violations truce order of 7 July were by Communists.