893.00/3–1548: Telegram

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

129. Government military sources admit capture Ssuping by Communists. Main Communist forces formerly Mukden-Hsinmin areas, [Page 153] which Government believed were being moved northward for regrouping and resupplying in Liaoyuan and Hsian areas, were diverted for attack on Ssuping and are now being moved northwards for possible attack on Changchun.

Govt sources Mukden state all (even 7,000 mentioned mytel 124 Dept, 174 Nanking March 1 [11]) Govt troops Kirin and Hsiaofengman Dam area withdrawn to Changchun. Kirin and Hsiaofengman now completely undefended by Govt. Confusion exists even among highest Govt military sources here as to disposition Hsiaofengman. Conflicting reports received that: (1) dam destroyed by Govt, (2) neither dam nor power units destroyed, (3) power units destroyed. Best sources information indicate neither dam nor power plants destroyed as yet and will not be unless Communists move occupy dam, in which event dam will be left intact but power plant destroyed.

Govt forces driving eastwards from Mukden and Fushun area established communications some days ago with Government garrison holding Penhsi, which had been surrounded by Communists period several weeks. Highway traffic Mukden Penhsi reestablished and one cart train food supplies already dispatched Penhsi.

Sent Embassy as 181; repeated Dept as 129.

Ward