() (1) Your deployment for the 19th was entirely correct. (2) The operations in Northern Jiangsu do not affect the overall situation; merely open a gap between Huai’an and Baoying to sever the lines of communication between Han and Huo, thereby establishing a corridor between Jiangsu and Anhui. Gu and Han will certainly raise a fuss, but a perfunctory response from your side will suffice. (3) With the breakdown of relations between Japan and Chiang Kai-shek, and Japan’s attempts to win over Wang Jingwei, the general situation has entered a new phase. Chiang is now even more at a loss regarding us. By moving north once again, you are conceding yet another step to him. Judging by the broader trend, neither Chiang nor Gu is likely to make things difficult for you. Begin the relocation in stages now; completing it by the end of November would not be too late. ()