We present a Green's-function theory of magnetic short-range order in the S
= 1/2 easy-plane XXZ chain based on the projection method for the dynamic
spin susceptibility and a decoupling of three-spin operator products introd
ucing vertex parameters. The longitudinal and transverse static susceptibil
ities and two-point correlation functions of arbitrary range are calculated
self-consistently for all wave numbers, temperatures, and anisotropy param
eters - 1 less than or equal to Delta less than or equal to 1. In the easy-
plane ferromagnetic region (Delta < 0), the longitudinal correlators of spi
ns at distance n change sign at a finite temperature T-0(n,<Delta>), in rea
sonable agreement with recent data obtained by finite-chain diagonalization
s. The temperature dependence of the uniform static susceptibilities exhibi
ts a maximum which is explained as an effect of magnetic shea-range order w
hich decreases with increasing temperature.