893.00/2–2445: Telegram
The Chargé in China (Atcheson) to the Secretary of State
[Received February 25—2:50 p.m.]
284. 1. American officer stationed in Ningkwo, Anhwei, has reported an engagement on February 19 between 3000 Chinese Communist troops and two regiments of Central Government troops at Hsia-feng, northern Chekiang. Fighting also reliably reported between Communist troops and Loyal Patriotic Army troops (Tai Li’s forces nominally under National Military Council) at Wuhing and Chiah-sing, northern Chekiang. Central Government troops and LPA10 claim to have stopped Communist southward drive in all three places. The U.S. officer mentioned above reported further that 8000 Communist troops have crossed Yangtze River in past few months, one-half [Page 239] driving down east side of Tai Hu (Lake) and one-half down west side. (Officer’s informant is Chinese Government liaison officer and information may be exaggerated.)
Air ground aid service representative (American) in Anhwei also reports fighting between Communist and Central Government troops in northern Chekiang. He states Communists are making progress, that they are gaining new recruits, that they are receiving increased support from the people and that Central Government troops are unable to halt them. Communists’ objective said to be southern Chekiang and northern Fukien coast.
2. This information would seem to be further indication that Communists are attempting to extend lines toward south and link up guerrilla pockets along coast in anticipation of providing assistance to potential Allied landing. Information also accords with statement made by Mao Tse-tung to Service11 in August last year that if negotiations with Central Government failed Communists would expand southward into this area.
Naval Attaché has informed Embassy that Tai Li reportedly ordered LPA troops to cease fighting Communists and evacuate immediate area if necessary as use of American weapons (with which LPA is largely supplied) against Communists would prove embarrassing to Central Government. More probable reason for such order, if given, would be to prevent loss of American weapons to Communist troops.