893.00/5–1249: Telegram

The Minister-Counselor of Embassy in China (Clark) to the Secretary of State

Cantel 367. … Source is informed … that Liu Po-cheng has concentrated 9 field armies in Nanfeng area, eastern central Kiangsi Province. Nationalists believe part of this force will take Amoy and balance move against Canton. No Nationalist troops with any considerable battle experience or reliability are at present south of this concentration.

We estimate Communists have capability take Canton within 4 weeks and believe they will probably decide exercise this capability in order separate Taiwan and Fukien Nationalists from south and west China, so preventing united action Generalissimo and Li Tsung-jen.

Repeated Nanking 275, Shanghai 232.

Clark