TOP SECRET 5. We have also had unconfirmed reports that Wenchow on the coast has fallen to local Communist forces. The general picture is, therefore, that the Communists will soon be established along the lateral communications running from Wenchow, Chuchow, Nanchang, and Changsha, and may subsequently advance thence into the rice bowl of Kiangsi and Hunan Provinces which forms an attractive prize. HONG KONG 6. (a) we are informed that the Hong Kong Police have located and raided another office of the Chinese Communist Party which apparently dealt mainly with Party finance.