TOP SECRET 8. In the North, a number of ships have succeeded in entering Taku, but on the 8th August, a Nationalist warship, believed to be an ex-U.S. Destroyer Escort, stopped a number of ships off Taku Bar, severely warned foreign ships and set on fire and drove ashore a Communist ship. 9. The foreseen assault on the Miao Tao Group has now taken place and the Communists have captured several of the Islands. It is not yet clear whether this Communist success has already denied the use of the Northern Islands to the Nationalists for blockade purposes.