893.00/2–2847: Telegram

The Consul General at Tsingtao (Spiker) to the Secretary of State

13. Reliably reported Govt suffered complete loss one American trained division and almost complete loss of another in recent fighting near Poshan coal center. Military Headquarters admits such forces encircled. Military situation at Tsinan believed grave. Press reports, under apparent censorship, now more optimistic in tone. According to reliable local information, press reports are correct that Govt will attempt to defend only Tsingtao, Weihsien and Tsinan in event Communists continue offensive. Tsingtao defense line being prepared at Chengyang, 21 miles north. Exclusive of US Navy dependents in Tsingtao, list of citizens in consular district remains substantially the same as shown in February list submitted. Developments will be reported.

Sent Nanking as 14.

Spiker