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Page 8

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Approved for Release: 2020/01/23 C00260604 # Taiwan Strait Situation On 4 August, at least 29 Chinese Communist jet fighters were sighted on Lungchi Airfield, about 30 miles from the coast in the Amoy area. On 27 July, at least 36 jet fighters of the Canton-based 18th Air Division flew to Swatow's Cheng-hai Airfield. flight activity in the Liencheng area on 2 August which suggests that aircraft may also be operating from Liencheng Airfield, about 125 miles northwest of Amoy. Other air activity has included a flight of about a regiment of jet light bombers into Shanghai from the north, but this may be a training exercise. There have been no significant reflections of unusual ground force activity in the Taiwan Strait area. The launching of a direct assault against the Quemoys, where Communist strength is about equal to the Nationalist forces, would require additional troops, but these could be brought in rapidly over the Yingtan-Amoy rail line. Communist troops in the Matsu area outnumber the Nationalists by two to one, but no activity indicative of military preparations has been detected in this area. There have been no changes in naval strength in the Fukien area. While the activities of other forces do not reflect an intention to initiate major, hostile moves against the Chinese Nationalists, Peiping has the capability to do so at any time. A recently renewed flurry of propaganda urging Taiwan's "liberation" appears to have subsided since Khrushchev's recent trip to Peiping, but the Chinese Communists have professed concern that the Nationalists are planning military action against the mainland. In a conversation on 4 August with Ambassador Drumright and Admiral Smoot, Chiang Kai-shek said he will continue to honor his treaty commitments to the United States which require consultation with US authorities before ordering an attack TOP SECRET 6 Aug 58 CENTRAL INTELLIGENCE BULLETIN Page 4 Approved for Release: 2020/01/23 C00260604
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