The Consul General at Mukden ( Ward ) to the Secretary of State
[Received July 27—12:10 a.m.]
167. Nationalists have failed to restore any semblance of order in New Kaiyuan recaptured from Communists 1 month ago (my telegram 172, July [June] 1833). Source, student and son wealthy land owner Kaiyuan, states Nationalists won military battle in New Kaiyuan but Communists won political battle.
Communists entered city on July 3 and for next 20 days of occupation made no attempt to take away people’s possessions. Communists removed only foodstuffs, medicines and cloth belonging to Nationalist Government. Request made for volunteers to carry stretchers but no attempt to coerce people into service. Only Communist destruction was to water, power plant and railroad station. Never more than 100 Communists in city.
People bitter towards Nationalists whose air force and artillery destroyed 90 per cent of homes occupied by common people even though no Communists in city. Former Nationalist magistrate of city re-entered town first with PPC34 troops. Systematic looting followed. Hsiung’s35 headquarters advised of looting and investigating group sent but because magistrate had influential friends in Hsiung’s headquarters nothing done. Units of Nationalists’ New Sixth Army used pretext of searching houses for Communists to loot people of further foodstuffs. Many people killed in city but only by Nationalist bombing and artillery. No foreigners except Koreans seen with Communists. Source states within past year he has become disillusioned by Nationalist policies and activities in Manchuria.