2.) The next area we need to consider is Hangchow and the major highway running from that location westward to Nanchang. This highway forms the boundary between the AoCC operational area and the Army of South China Operational Area (AoSC). We would like to secure this highway and construct a series of forward operating bases along it to secure the route. Road infrastructure in this area is minimal with the exception of this main highway. The country between the highway, north to the Yangtzee, is rough and heavily forested and there are virtually no large population centers between Hangchow and the Nanchang/Kiukiang area. With limited population, easy access to the Yangtze and plentiful cover to avoid detection, this area will likely prove problematic by allowing enemy forces sanctuaries from which to operate against the population centers on the lower Yangtze and our occupied positions on the upper Yangtze. If sufficient troops can be found we would like to run a clearing and securing operation up the highway and sweep and clear the area between the highway and Yangtze in conjunction with the operations outlined in section 1.). Hangchow is located near the coast on the Chientang River near where it empties into Hangchow Bay. It is the southern terminus of the grand Canal and a provincial capital. Its existance can be traced back at least 4000 years. Strong tidal currents cause the river to silt heavily so it is not a prime location for a major port unless we desire to engage in extensive dredgeing operations. We have occupied Hangchow since December 1937. The population is not particularly rebellious and we feel we can secure it with minimal IJA/IJN forces if we immediately form local Chinese units and prepare them to take over security operations there. Nanchang is a Chinese provincial capital and communications center. It is located on the Kan River where it enters Poyang Lake. We have occupied it since March 1939 and repelled a major Chinese effort to retake the city one month later in April. We handily repulsed the attempt. Not only do we feel Nanchang is important as an anchor for our line between AoCC and AoSC, and an important location for keeping the main highway to Hangchow open, but as an important location to help isolate and eventually attack and capture Changsha. Kiukiang is the second largest city after Nanchang in the Jiangxi province. It was once a key tea producing center and had a sizeable international community. The British ceased their tea production there in 1927 when riotous crowds and mutinying workers pillaged and robbed the British Concession. With the approach of KMT forces on Wuhan, the remaining international population fled on American and British warships south to Shanghai. It is important that we continue to hold it to secure river access and Nanchang's right flank.