893.00/12–2347: Telegram
The Consul General at Mukden (Ward) to the Secretary of State
[Received December 24—9:31 a.m.]
397. Lull in Communist attacks first 2 weeks December when Communists regrouped and shifted troops. Government used lull move troops Chinchow–Shanhaikwan sector to areas south Wall where immediate need more urgent and repair Mukden–Peiping rail line. Middle December Communists deployed troops and renewed attacks. First objective, disruption Mukden–Peiping rail line, accomplished by [Page 414] effective destruction Alingho bridge near Chinchow. Next objective economic blockade Mukden and Chinchow. Tactics employed differ two cities. Chinchow area Communists attacking in force, taking and holding major strong points surrounding city. Believed Communists realize Government force Mukden area too strong and concentrated for successful direct assault. Consequently Communists small mobile units guerrilla fighters, wearing white outer garments, infiltrated Government positions striking with intention miss heart Mukden. No attempt by Communists hold any position inside Mukden outer defensive lines. Government forced abandon all holdings outside defense perimeter and adopt strict defensive. Communist move has created acute uneasiness Mukden civil population. War has moved to vicinity Mukden for first time since Government occupied NE. Anticipated Communist blockade caused heavy purchase already short supply foods. Result prices rising more rapidly than currency is depreciating and civil population approaching panic because food and fuel shortages. No immediate danger Communist seizure Mukden likely since no units sufficient size massed or being massed in vicinity. Continued economic blockade anticipated. If blockade maintained, civil rioting will increase.
Three crack divisions Government troops within city probably will be able handle rioting unarmed mobs. May not however be able handle both rioting and concentrated Communist attacks. Infiltration Communist units probably will be able prevent an appreciable amount food entering city from countryside which will necessitate Government procuring food elsewhere. Only logical source supply over Mukden-Peiping rail line where insufficient Government troops now concentrated maintain traffic. Most logical source immediate military manpower isolated garrisons Changchun and Kirin. Continued blockade may force withdrawal these troops maintain supply line Mukden.
Sent Embassy, repeated Department 397, Changchun 383, Peiping 107.