893.00/11–847: Telegram
The Consul General at Mukden (Ward) to the Secretary of State
[Received November 12—10:17 p.m.]
343. Communists continue disrupting Mukden [–Peiping?] and Mukden-Dairen railways. Their tactics in general, excepting in Kirin sector, consist harassing activity, destroying communications and powerlines and attacking moving Government troop columns. Government has sent 9 divisions reinforcements Manchuria since beginning sixth offensive mid-September of which 4 divisions have been annihilated or captured. Most recent loss was 1 Government division proceeding Chinchow to Peipiao which was surrounded and surrendered to Communists.
Only major effort against important strong point thus far this offensive being made Kirin where 2 Communist columns engaged. Some observers believe Communists have shifted focus attacks northward while awaiting freezing Hulutao and Yingkow ports next month. Government naval strength in Liao River too devastating to enable Communists take Yingkow at present but situation there will favor Communists when river ice causes withdrawal gunboats. Necessary [Necessity?] capture Hulutao will vanish when port freezes. Communists will undoubtedly continue cutting Mukden–Peiping railway which task will be facilitated upon their capture Yingkow as railway will then be subject attack from both east and west.
Ample evidences sixth offensive proceeding satisfactorily to Communists who have suffered light losses and at same time made successful strides toward disrupting economy and communications north Great Wall. They have killed or captured large number Government troops, seized large stocks recently harvested cereals and food sorely needed by Government forces and captured considerable quantities military supplies and equipment. Some Government units still incapable meeting Communist troops in frontal attack.
Civilian morale, which improved when General Chen Cheng named director PNEH, again deteriorating rapidly. Government troops gouging civil population less than prior arrival Chen but southern officials, after acting with restraint during early days Chen regime, are again exploiting civilians mercilessly. Cost living has risen unprecedented level, food scarce, fuel and clothing practically unobtainable, value local currency tumbling rapidly and everyone aware life will be desperate struggle this winter. Many formerly loyal northeasterners losing their will to resist Communists and others less loyal, but nevertheless formerly anti-Communist, now feel that life under Communists cannot be less attractive than under Kmt regime.
[Page 363]Notwithstanding his glowing early promises Chen has accomplished little, if anything, toward removing basic causes of discontent and Communist propaganda therefore has lost none its magnetism. Nothing has been done toward suppressing unfair and discriminatory practices against foreign business firms.
Hopes American aid, which were high during and immediately after Wedemeyer mission visit, continue to wane. Such waning contributing deterioration civilian morale. If aid forthcoming, early indication thereof would have stimulating effect. Without hope such aid, situation is not promising. At same time, however, without Governmental reform in NE regime and removable basic causes discontent, it can be successfully argued that such aid will prove temporary palliative only.
Sent Nanking, repeated Department as 343 and Changchun.