893.00/5–3147: Telegram

The Consul General at Mukden (Ward) to the Secretary of State

79. Military situation based on information received from NECC thru ESD sources is as follows:

Communists have captured Meihokou and Changtu and isolated Nationalist garrison Ssupingkai. Nationalist forces defeated at Meihokou retreating toward Hsian since this only escape route Communists left open. Main body Nationalist forces now at Kaiyuan and Chingyuan. Communist offensive last 2 weeks succeeded splitting Nationalist Manchurian force into 4 groups, 3 of which are isolated. Isolated groups in Changchun, Kirin, Ssupingkai areas. Only free group is in Kaiyuan and Chingyuan area. Communisms employed baffling strategy as far as Nationalists concerned by by-passing Nationalist strong points and isolating garrisons. Communist strategy has been exceedingly effective. Nationalists worried over future plans Communists and appear unwilling to commit large numbers forces to relieve isolated units because are unable to guess where Communists will strike next. Nationalists appear completely on defensive. Typical example Nationalist bewilderment was they expected Communists to attempt take Hsian after capturing Meihokou, but Communists have given no indication this is their present plan.

New subject: Well-informed Chinese official states that main Nationalist counter drive is due start May 31 in form of northward push from Kaiyuan. Our estimate is that Nationalists may start offensive for benefit of visiting Gimo but offensive may be for display purposes only.

Sent Nanking as 133, repeated Dept as 79, Changchun as 41.

Ward