SECRET GUARD formations within the coastal area and augment their air defences there. They may also move their navy to a position south of the Chusan archipelago from where it would be able to put to sea at a suitable opportunity in order to attack Nationalist warships engaged in blockade or in escorting amphibious operations. We do not think that any of these reactions would affect Chinese forces in Korea, or in the vicinity of Indo-China or Hong Kong. 11. If the Nationalists do increase their activities the Communists will almost certainly take the general precautions described in para 10, if they have not already taken them.