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Approved for Release: 2020/01/23 C00260754 TOP SECRET # Taiwan Strait Situation A Chinese Communist loudspeaker broadcast from Amoy Island on 11 November said: "The cease-fire on even days is hereby abolished. Shelling is possible any day." The broadcast implies a change in the Communist Defense Minister's 25 October order which had limited fire on even days to areas other than the beaches and landing strip on Chinmen, but there has been no official statement or comment from Peiping. Since the Defense Minister's order there has been little or no shelling on even days. Three Chinese Communist ships, identified as landing-ship type vessels, and an unidentified ship moved south from the Shanghai area to Santu Bay on 6 and 7 November and were still there on 10 November. Before moving south, these four landing vessels together with another vessel participated in an operation of undetermined nature off the Yangtze estuary on 4 November. There is no indication of the purpose of these movements. Landing ships have been making regular runs from the Shanghai area to Santu Bay during the present situation, presumably carrying cargo, but this is the first time that so many have been detected there at one time. Naval activity has continued at a high level, particularly in East China waters. Some of the six North China - based submarines which now are in the Hangchow Bay area have been conducting exercises with surface ships there. There has been no change in the situation of Chinese Communist air and ground forces in the strait area. A correspondent of Peiping's official news agency in late October told a Western journalist in East Berlin, who may be TOP SECRET 12 Nov 58 CENTRAL INTELLIGENCE BULLETIN Page 3 Approved for Release: 2020/01/23 C00260754

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