893.00/7–2546: Telegram

The Ambassador in China (Stuart) to the Secretary of State

1197. Continuing reports indicate clashes in Shantung, Kiangsu and along Honan–Hupei border and in Shansi increasing in scope and violence. General situation indicates imminent approach state full scale civil war. (Summary M[ilitary] Attaché’s] report period July 13–21, 1946.)

In Shantung Nationalist 54 Army, moving west from Tsingtao, and 73 Army, moving east from Tsinan, have recovered entire Kiao–Chi79 railway and branch line from Changtien to coal mining area at Poshan.

In Kiangsu first offensive has gained power and momentum, with towns along north bank Yangtze river coming under attack including [Page 1403] Liuho 20 miles north Nanking. Heavy fighting reported now in progress between Nationalist units and Communist forces in vicinity Huangchiao.

In Honan–Hupei border region estimated forces 60,000 Communist, bulk of garrison troops Communist central China military zone, reported successfully broke through cordon 5 Nationalist armies at Hsinyang, moved west in 2 columns in attempt enter south east Shensi where terrain favorable guerrilla operations.

In Shansi forces 80,000 Communist reported surrounding Tatung on 15 July.

Communist attacks in Hopei along Tientsin–Pukou railroad have ceased and all important centers remain Nationalist hands. Reports indicate 370,000 Japanese have been repatriated from Manchuria. Estimated daily departure from Hulutao now 12,000.

  1. Kiaochow (–Tsingtao)–Tsinan.