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closer together than they were a fortnight ago.

There can be little doubt however that CELANG KAI-SIME, for his own prestige, and for the sake of carrying out immediately the reconstruction prograrrie of CHINA, is now trying is best to prevent civil war, a policy which he has followed since 1931, when he defeated FANG YU-MING (the "CHRISTLI General) and YSN ESI-SIAF.

II.

SE NTUC.

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The 8th Army troops now waiting in HONG KONG for U.S. slips to lift then to SI GIAO is undoubtedly another CHUNGING sten to strengthen its position in SKU TUNG.

It must be remembered that SILUPUC has for over nine years been administered by military governor, General HAN FU-CHU, who has never taken orders from CELING MI-SKEK, This absence of direct KUO IMAG influence in FNUG is one reason why the Communists today are trying to hold WK.I MI and CHEFOO against the larger army of Central Government forces in TSI: GT..0.

HAN TU-CHU enjoyed ruch the same position us General LUG YU (the Governor of YUWN province, who was ousted by SHLIG's troops only a few weeks ago) had enjoyed in YAN as the province's "Uncrowned King" since 1928, the second year after CHIAC's establishment of his Mational Goverment in NAPKING

III. SISI.

HMSI province, another scene of Co unist activity today, has also naist ined a semi-independent goverment under General YMM (ISI-SILT since 1912, the first year of the Republican Cover_iment in CINA

Though YEN HI-SEAN revolted against CHIANG KAI-SK in 1930 he was restored as NSI's Governor in February 1932. Today YEN's sympathy is said to be with CHLAM! against the Comunista. Decause of its nountainous country, SHAMI, during the JIMO-JANESH var, offered a good battleground for the Conunu- nists, who were able to inflict heavy casu lties upon the JAPANISE by their guerilla warfare tactics. It must be assumed therefore that the REDS of YWWll know the country very well tnd in the event of an open var with om: GKING, the Goverment forces would have to conduct a difficult and per ps lengthy operation before these on onents were eliminated.

IV. MOPHI.

W

These

Persistent editorial attacks are being; made in the CHUCKING press against the Reds for destroying parts of the MINING-TI MISIN ruilway. This is to prevent the swift movement of KUOI I TIG troops to ANCHURIA f on KOT and 3MLFCTV I. press attacks show the strong feeling in CHUCKING, which dermnds that the Reds must give up the railways, though in a compronise at a later date they may b. permitted to hold some regions outside the railway lines.

Central Government troops, however, have been assisted by the ERIC NS who have undertake to transport them to North China from SAGLI, AUKING, CAROM and 10%LOOM, both by air and ships.

V.

IMER MONGOLIA.

News has been received from IER NONGOLIA that 22,000 Reds are besieging KISUI, capital of SUIYAN province, and that General O LG is leading the Counist ttack.

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