MILITARY SITUATION IN CHINA

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP82-00457R002700530001-7
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 2
• Document Creation Date: November 9, 2016
• Document Release Date: January 7, 1999
• Sequence Number: 1
• Publication Date: May 5, 1949
• Content Type: REPORT

25X1A9a
COUNTRY China
ocunent is hereby regraded to?ATE DISTR. 9 fay 1949
nrvwnn~
SUBJECT
i1
---
itary Situation in a
-
K(3 ..
er of 1 ober 1978 from the O. OF PAGES 2
25X1 A6a Director of Centr itigence to the
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of the
ACQUIRED Next Review Date: 4 S ' v? O ENCLS.
V ED eEaawi
DATE OF IN T SUPPLEMENT TO
REPORT NO,
25X1 X6 1.. Because of the fall of Hangehow on the night of " 3 Pay 1949, the .'Jationalist
line on 4 Lay reached from Chiahsing (120-4y, 30-46) to Kzartshan (120w57,
31-24). The iyationalists will attempt to hold this line for five days,
then will fall back to a specified line which they will attempt to hold for
twenty days.
2. Elements of Chinese Communist General CHUG Keng?s' 29 Army are now at Kun-
shano lements of the Communist 38 army are in the Soochow area, and elements
of the 23 Army are in the Chiahsing area,
3. The Communist Hangchow-Kunshan forces plan to converge on Shanghai, while 30
percent of the Communist forces in the Hangehow will, proceed to Canton.
another Communist force will advance alon; the Chekiang-Kiangsi railway to
attack. Nanchang (115-53, 28-40) and start attacks to the south.
4. Nationalist military leaders now feel that they must make a definite show
of resistance in order to gain respect from nations that might support them,
but they also feel that they are being forced to handle alone what is an
international problem.,
5. Contrary to press reports, Generalissimo CHIANG Kai.-shek is still in Shanghai.
In the morning of 5 kay he conferred with Shanghai Police Commissioner LA0
Sen, and approved the formation of an "Anti-Coraraunist Chinese People?s Sal-
vation Army."** This underground army, headed by LAO and responsible to
TANG &i-po, will concentrate on guerrilla warfare.
6. At present the Nationalists plan to evacuate all government offices, univer?
siti.es and students to Taiwan, Canton and Amoy, but no transportation is
available.
7. There is a noticeable influx of armed Communist saboteurs into Shanghai, who
are attempting to cause fires and riots, and to organize dissident elements.
Several have been arrested and immediately executed.
8. The Communists will definitely take Shanghai, although many of the local
populace feel that they will bypass the city completely.
Sanitized - Approved For a ease : iA- P82-00457R002700530001-7
CENTRAL INTELLIGENCE AGENCY REPORT NO.
A-M a ~ ~ - cw~ , M-A Eft ow 911% M
CD NO.
CLASSIFICATION r - 25X1 A2g
 Sanitized - Approved For R RDP82-00457R0027005QA27g
CENTRAL INTELLIGMCI; AGENCY
9. Fuel and rice problems are very serious. The Shanghai rice supply will
last until the end of June, and possibly to the middle of July. Shanghai
now has 350,000 tons of coal, and a monthly consumption of 120,000 tons.
The economic problem is the determining factor in the defense of the city.***
10. Officials-of the Chang Hua printing plant have moved 50 percent of the
currency-printing equipment and personnel from Shanghai to Taiwan, and the
rest are alerted to leave at a moment's notice.
25X1A6a *
25X1A2g
25X1A6a ***
According to information available to this office,
e Army is subordinate to CHEN Yi's command.
ccording to the announcement of ECAA officials,
Shanghai now has 14 days of fuel supplies and, unless ECA replenishes
the stocks, the utilities will be forced to close.
Sanitized - Appro,
-00457R002700530001-7