In Taylor's absence, acting command of the 101st and its attached troops fell to McAuliffe. At Bastogne, the 101st was besieged by a far-larger force of Germans under the command of General Heinrich Freiherr von Lüttwitz, who soon demanded that the Americans surrender. McAuliffe sent back his now-famous reply: "NUTS!" The 101st was able to hold off the German assault until the 4th Armored Division arrived to provide reinforcement. For his actions at Bastogne, McAuliffe was awarded the Distinguished Service Cross by General Patton on December 30, 1944, followed later by the Distinguished Service Medal.
Following the war, McAuliffe held many positions, including Chief Chemical Officer of the Army Chemical Corps, and G-1, Head of Army Personnel. He returned to Europe as Commander of the Seventh Army in 1953, and Commander-in-Chief of the United States Army Europe in 1955. He was promoted to general on March 1, 1955.
He resided in Chevy Chase, Maryland until his death on August 11, 1975, age 77, and is buried along with his wife, son, and daughter in Arlington National Cemetery.
To the U.S.A. Commander of the encircled town of Bastogne.According to various accounts from those present, when McAuliffe was told of the German demand for surrender he said "Aw, nuts". At a loss for an official reply, Lt. Col. Kinnard suggested that his first remark summed the situation up well, which was agreed to by the others. The official reply: "To the German Commander, NUTS!, The American Commander" was typed and delivered by Colonel Harper and Major Jones to the German delegation. Harper had to explain the meaning of the word to the Germans. According to an article in the Daily Mail (a British Newspaper) the reply was not Nuts but a four letter expletive that was changed for propaganda purposes for domestic consumption.
The fortune of war is changing. This time the U.S.A. forces in and near Bastogne have been encircled by strong German armored units. More German armored units have crossed the river Our near Ortheuville, have taken Marche and reached St. Hubert by passing through Hompre-Sibret-Tillet. Libramont is in German hands.
There is only one possibility to save the encircled U.S.A. troops from total annihilation: that is the honorable surrender of the encircled town. In order to think it over a term of two hours will be granted beginning with the presentation of this note.
If this proposal should be rejected one German Artillery Corps and six heavy A. A. Battalions are ready to annihilate the U.S.A. troops in and near Bastogne. The order for firing will be given immediately after this two hours term.
All the serious civilian losses caused by this artillery fire would not correspond with the well-known American humanity.
The German Commander.
Route 33 in eastern Pennsylvania is called the Gen. Anthony Clement McAuliffe 101st Airborne Memorial Highway.