893.00/7–1446: Telegram
The Counselor of Embassy in China (Smyth) to the Secretary of State
[Received July 15—5:05 a.m.]
1138. Uneasy truce continued, but indications were that constantly reported isolated clashes could develop into open civil war. Mutual KMT-Communist accusations of breaking cease-fire agreement of 7 June continued. Areas principally affected are in Shansi, Shantung, and southern Honan.
[Page 1356]Reliable sources report constant Central Government air attacks against Communists during period 30 June through 6 July. Chinese Air Force flew 81 missions using 153 aircraft. (Summary Military] Attaché’s] report for period 6 July through 12 July.) On 5 July, 4 aircraft, alleged Communist, strafed Yellow River ferry crossing near Kaifeng.
In late June, one B–24 aircraft of Chinese Air Force flew to Yenan and remained; Communists claim crew deliberately joined their side. Government has ignored Yenan claims, but specific Communist identification of unit (35th Squadron, 8th Bombardment Group) and crew lends credence to Communist report. Communist attacks in Tatung area of Shansi continued. In Tsinan area, Shantung, Nationalist counterattacks east along railway had reached Choutsun on 9 July. Concentration of 100,000 Communist troops north Kiangsu increased tension that area.