893.24/12–2347: Telegram

The Ambassador in China (Stuart) to the Secretary of State

2444. George Yeh was grateful for information contained Deptel 1534, December 18, 7 p.m. re 8⅓ Group Program and hopes expedite action complete purchase.

[Page 934]

Again he stressed dire need Chinese for .50 calibre ammunition. For fear the information might leak, he had not dared even tell Chinese Ambassador, Washington, real situation. China had only 2 million rounds of .50 calibre ammunition remaining and all 6 arsenals in Szechwan were idle because of lack of powder. With the situation in Mukden he said 2 million rounds wouldn’t last long. We mentioned Clark’s failure when in northeast to find anyone, including General Chen Cheng, who would admit to ammunition shortage and Yeh replied that Generalissimo had hitherto refused to permit commanders in field to be informed of real shortage ammunition for fear of effect on morale. Onlyl last week, he said, Gimo had been persuaded to advise field commanders of situation. Although Yeh is again instructing Koo to press matter in Washington, he asked us to pass on the above.

There appears no way of ascertaining with accuracy what actual ammunition situation in China may be. We doubt whether the Chinese themselves know actual situation. Nevertheless military situation continues to deteriorate and it is entirely possible situation is as portrayed by Yeh.

Stuart