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Approved for Release: 2020/01/23 C00260822 invaded next week when moon and tide conditions are favorable. They claim that stepped-up enemy activity on the mainland can be observed from Keoteng, the northernmost island of the Matsu group. Thus far, Nationalist counter-battery action has been conservative, probably to save ammunition for a possible Communist assault. On the evening of 27 August, however, the Nationalists fired 8,000 round which they claim destroyed nine Communist artillery pieces. This appears to have been an effort to relieve the heavy artillery pressure on Tatan Island. Reports of the despatch of the carrier Essex, and President Eisenhower's press conference remarks on 27 August were received with gratification by the Chinese Nationalist press and officialdom, who tended to construe them as a US commitment to assist in defense of the offshore islands. The foreign minister issued a statement on 28 August expressing gratification that the President had "stressed the interlocking importance of the offshore islands with the security of Taiwan," and appreciation for the various measures the US has taken to deal with the Communist moves. TOP SECRET 29 Aug 58 CENTRAL INTELLIGENCE BULLETIN Approved for Release: 2020/01/23 C00260822

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