TEer are

sunt

ChG commando operations agkingt the mainland were suspendell in sary
sumer following declolve sethagke ag a reault of effective Chican counter
avthions, There are sow siete of preparation and reports of remewed opera-
tione {pec attackment), The Setober 10 bouble Ton Dey celebrations, and
Chiany Kaleshek's bigthdey Geteber Jl, are traditionsh times for such activie
ties against the mainland (see attectment)., Equipment used in those raids
ia generally nermdiap supported, the 1,3, doss not partdeipatey, and we are
generally informed oniy after the cperntlon} takes phate.

The recent rushed completion of an aix girip on the Pretas Reef (Located
Gust to north of direct Line, aid almoth mideway between Hong Kong and Makils)
eorkimes to be a mystery of sama contem., The G26 has with straight face
explained the strip aul related storece facilities, almost ay big as the reef
Liself, as being for the purpose of ewacuabing the reef in an auergenmry. The
tiv strip will ereatly facllivete any GAC intervention in SEA {eee atbachnent
wink diseveses renewed Gi iakeredt in SHA),

suger

There have been a number of recent indications (see atbachment)
that KY Ireegulars in the Thal-<Burma-Loas border area are preparing
for or ave already engaged in imeraagad military arhivity. The Depart
nent has advised the posts concerned of its opposition to euch 4
development and Taipei has been inatructed to make this known to the
GkO. Paipel, however, apparently feels that 14 ie in an embarrassing
position, having been teld several times by foneral Chisng Ching-kuo
thet the GRC hag decided not to ald the Irvegulary. Nevertheless,
the kmbassador has bean asked fo gack am approprtate opportunity to
vhiterste to President Chiang our concer about develogpmenta in this
problem avea (@eptel, 210 of 9/hf6) EXDIS). In discussing these opera~
tows Lt ie inperhant te keep dn mind the distinetion between dlan-
degtine inbelligenca operations and pure military operations, The
intelligence operations cau provide information on Chicen operetions
and intbentiond in BEA. This Loforsabion te important in the 1.5.
nebional intevest., Paraewilitary operations ineluding sabotage, are,
on the othexy hand, likely to upset the delioate bakence im thet part
of SHA, to further sloud V.8.chumese relationg, and fo offer a pire~
text for further Chieen enernachment into Northern Burma.

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