Telegram from Consul General Walter McConaughy to Secretary of State Dean Acheson

42 ENCOMING TELEGRAM Department of State DUPLICATE IN W. P. FILE TELEGRAPH BRANCH 23 SECRET N 11149 December 24, 1950 FE Hong Kong 4:17 a .... TO: Seoretary of State SS G NO: 1621, December 23, Noon P EUR UNA SENT DEPARTMENT 1621, TAIPEI UNNUMBERED. OLI CIA Wang ChengApo says courier who left Peiping December 12 ARMY brought following information from Chang Tung-sun: AIR NAVY 1. Liu Shao-chi, Lo Jung-huan and three or four other DCR members Politburo not including Mao Tse Tung did go Moscow end October returning Peiping early December. 2. In Moscow it was decided take advantage differences between Western Powers, US internal political disagreements and lack UN reinforcements for Korea and push offensive to conquer all Korea. Attempt will be made to surround and annihilate UN forces there. 3. Second Moscow decision was to commit 150,000 to 200,000 Chinese troops aid Viet Minh. 4. Third decision was attack Taiwan in first half 1951 regardless whether Seventh Fleet removed. PO will widebut strategic plan of operation not yet worked out. USSR will station 1000 planes China manned by Soviet personnel. Chang also reported CCP Politburo decision push bandit supression campaign in interior and increase defenses there while coastal areas appear relatively empty of troops in order encourage Taiwan attack, thus giving Chinese Communists chance to wipe out large number Taiwan troops on mainland and weaken Taiwan defenses. 'He also said economic protection bureau hair recently ordered agents in Japan and Hong Kong continue buying and shipping needed materials by all possible means. According Chang political conmissars of sepd* second and third FA meeting in Manchuria advocated halting offensive at 38th parallel and opposed commitment large number troops Indochina at same tine as Koresn affair required large concentration in north and Taiwan still unliberated. However, fourth FA advanced opposite view which accepted at Moscow conference. Some friction had arisen between Chinese and Russians because of large number Russian air and land troops Manchuria who get much better treatment (over) than Chinese REPRODUCTION OF THIS SECRET MESSAGE IS PROHIBITED