893.00/10–2248: Telegram
The Consul General at Mukden (Ward) to the Secretary of State
[Received October 23—2:12 a. m.]
419. Bewilderment and slight hysteria accompanying news fall Chinchow and Changchun subsiding among Chinese military here. Government has abandoned any plans drive westwards retake Chinchow. Main Government forces Mukden Island shifted southwest-wards covering right flank two Government divisions driving Yingkow. Unconfirmed report received Government diverting 40% reinforcements scheduled for Chinhsi–Hulutao area to Yingkow assist northeast divisions in securing Yingkow. When Yingkow secured, Government will withdraw other extended outposts toward Mukden and defend former Mukden Island. Government anticipates this move will be completed by October 26. From now until such time Yingkow secure seen as critical period Mukden because necessity divert Mukden troops protect Yingkow move, leaves Mukden vulnerable sudden Communist attack.
Chinese military believe continued Government tenure northeast will depend upon military situation North and Central China. If Communists exert much pressure those areas, Government may be compelled withdraw forces northeast to bolster sagging defenses intramural China areas. If no such withdrawal made for next 5 days, [Page 509] however, believe ample warning will be received by ConGen implement any necessary evacuation personnel or property.
Deep pessimism over general situation here and China proper prevails among informed and responsible Chinese civilians. Apparently believe end Government tenure China rapidly approaching, if not already in sight. Despondency increased by recent military reverses and breakdown economic rehabilitation plan and new currency.
Sent Nanking 567, Department 419, Peiping 225, Tientsin 139.