Foreign Relations of the United States, 1949, The Far East: China, Volume IX

893.50 Recovery/6–2049

Mr. Livingston T. Merchant ⁴⁷ to Mr. Harlan Cleveland, of the Economic Cooperation Administration

Washington, July 1, 1949.

My Dear Mr. Cleveland: The receipt is acknowledged of your letter of June 20, 1949, to Mr. W. Walton Butterworth, Director for Far Eastern Affairs, in regard to the areas in China in which activities are being carried out by the Joint Commission on Rural Reconstruction in China, and the possibility that these areas might fall under Communist control.

The Department has no information which would indicate any marked degree of Communist activity in the provinces of Szechwan, Kwangsi, Ninghsia, Kansu or the island of Taiwan, nor has there been activity by Communist regulars in Kwangtung. However, in this last named province there has been considerable activity by units generally considered to be Communist guerrillas.

The following numbered paragraphs indicate briefly the status of various areas as revealed by information at present available to the Department, the numbering conforming to that of your letter in referring to the areas in question.

1. It would appear that the decision to withdraw support from the projects in the six hsien around Lungyen is justified in view of Communist military activity in that area.

2. Officers in this division have been informed by officers working in the Division of China Program, ECA, that the 7th Prefecture of Fukien includes certain areas in southwest Fukien around Lungyen. As indicated in the preceding paragraph the Communists have been operating in that vicinity.

3. Areas around Lingsen, Putien, and Chinkiang (Chingkiang) are apparently clear of Communist activities. We were unable to identify Lyngyen; this might be a reference to Lungyen, where, as indicated above, there has recently been Communist activity.

4. The area around Foochow is at present free of Communist activities.

5. Hunan is comparatively untroubled by Communist military operations except for the extreme northeast portion.

6. The Lin Lake area is at present free of Communist operations.

7. The area around the northwest corner of Tung Ting Lake is likewise free of Communist activity, although the northeastern portion has for some time been threatened.

I trust that this provides you with the information which you desire at this time.⁴⁸

Sincerely yours,

Livingston T. Merchant

Special Assistant to the Chief
Division of Chinese Affairs

47. Counselor of Embassy in China who had been called to the Department for consultation.
48. Letters dated July 27, August 23, September 20, October 19, November 8, and November 18 were sent by the Department to the ECA as notifications that specific areas of China, had been taken by Chinese Communist armed forces.