The Ambassador in China ( Stuart ) to the Secretary of State
[Received January 14—4:47 a. m.]
84. Our information is to effect that Government forces found little if any supplies at Chefoo (reDeptel 1594, December 31, 6 p. m.). Assistant Military Attaché who visited city shortly after Government reoccupation states categorically that Government captured no ammunition stocks at Chefoo. Communist withdrawal from Chefoo was leisurely and orderly extending over a period of 2 months and all supplies were evacuated.
Sensational stories such as referred to in reftel are not unusual in “monthly report”. There has been some evidence of smuggling operations operating from Shanghai into Communist controlled areas but all indications have been that these operations were designed and run for profit rather than for political purposes and we have no reason to believe that there has been traffic in American ammunition in any quantity. As far as we have been able to determine, any US ammunition in Communist hands is the result of capture in combat operations.