893.00/5–1149: Telegram
The Consul at Tsingtao (Strong) to the Secretary of State
[Received May 11—6:58 a. m.]
185. Following battle night May 6–7 in which they were defeated, Communists began withdrawal from perimeter. Main body now stated some 40 miles due north Tsingtao.
Source close to Liu An-chi states during confab at Shanghai last week Generalissimo authorized Liu withdraw forces from Tsingtao and choose own timing in order avoid losses.
Morale of Nationalist soldiers somewhat elevated by victory over Communists and by payment to portion of Army and to all wounded silver dollars in amounts varying from 4 to private to 50 to colonel.
Sent Nanking 144, OffEmb Canton 49, Department 185.