THE CHINA MAIL, DECEMBER 14, 1938

Second Period Of War Is Just Beginning

Chungking, To-day.

The "Ta Kung Pao" publishes an exclusive report to the effect that the Chinese highest comman- ders reviewed the military situation at a meet- ing yesterday.

Following the meeting, the paper states, General Chiang Kai-shek expressed complete optimism as regards the future military situation.

The Generalissimo is said to have declared:

"Japan as a first-class power, after eighteen months of hostilities, using her entire army, naval and air for-

REMARKABLE

ces, has only succeeded in captur- REARMAMENT

ing a few positions along her com- munication lines.

"Although Nanchang and Chang- sha are vital points from the stand- point of military strategy, the Ja panese have failed to capture these cities after the fall of Hankow and Canton."

1

PROGRESS

London, To-day. Sir Charles Craven, managing director of Vickers Armstrong, speaking at the annual meeting of ONLY JUST BEGINNING the Midland Area of the National The Generalissimo is reported to Union of Manufacturers, said he have stated that the Japanese did not share the views of those hitherto have been operating

who had doubts of the efficiency of the level plains to the east of the the present methods of rearma- Peiping-Hankow Railway.

on

He is said to have stater: "After

areas.

ment.

"Personally, I think the progress this they will have to engage the during the last two years has been Chinese troops in mountainous remarkable, and I believe that if the same goodwill is shown by the engineering firms during the next the twelve months as had been shown of during the past two years, the the industry will achieve an output of that will satisfy all Government of departments. British Wireless.

"It is a mistake to classify fall of Nanking as marking conclusion of the first period the Sino-Japanese hostilities, fall of Hsuchowfu as the end the second period and the fall Hankow as conclusion of the third period:

that the MUFTI'S RELATIVE

"We may properly say that the present moment marks. the conclu- sion of the first period in the hos- tilities, whereas the second period is only just beginning."-Reuter.

PRESS CONFIDENCE

Chungking, To-day.

The Chinese press published yes- terday morning special editions on the occasion of the first anniversary of the fall of Nanking.

The Nanking Residents Associa-| tion held a mass meeting in the afternoon.

ARRESTED

Jerusalem, To-day.

The Mayor of Gaza, who is a relative of the Mufti of Jerusalem, has been arrested under the Emer- gency Regulations.

Two Arabs and one Egyptian have been sentenced to death by a military court on a charge of shoot- ing with intent to murder a British military officer near Lyddia on

The Chinese press unanimously December 7- declares: "Since the fall of Nanking A third Arab, aged 17, was sen- other cities like Hsuchowfu, Canton tenced to life imprisonment. and Hankow have been lost.

"Our hearts are in deep sorrow but our deep determination, to re- sist the Japanese invasion is not lessened, nor our confidence in our ultimate victory and our recovery of the lost capital."-Reuter.

Reuter.

not NO INCREASE

IN NOTE ISSUE

KING'S XMAS

TREE

London, To-day. The King's Christmas Tree will be placed outside the west door of St. Paul's Cathedral on December 19.

London, To-day.

Asked in the House of Commons whether he would consider a per- manent increase in the fiduciary issue, in view of the increased Government borrowing for defence, Sir John Simon, the Chancellor of the Exchequer, replied that he did not think such action was desir-

Reuter.

Gifts will be brought to the Cathedral daily until Christmas able. Eve. Reuter.

"NIKS:

A. Guaropreed Cure. For Hong Kong Foot

XMAS RECESS

London, To-day.

Mr. Neville Chamberlain an- |nounced in the House of Commons yesterday that the House would adjourn for the Christmas Recess on December 22 and would re- assemble on January 31.

The Speaker was empowered to call the House together earlier if necessary in the public interest Reuter,

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