Gen, Chen Yi Loyal But Troops Seduced by Kuomintang Agents Advices rvewived yesterday Shanghai have partially cleared the doubts of the previous day which existed about the military positions in Hangchow and vicinity. It appears probable that the first Division under the command of General Chen Yi, numbering about 10,000, have seceded from their former allegiance and are in full possession of the city, The third Division, likewise, is understood to have renounced their alliance, Marshal Sun Chuan-fang's xeconnoirring parties have reached the dismantled bridge, Known as the Lingping, near Chienjao station, the insurgents having retreated beyond this point to the outskirts of Hangchow. The advance party are repairing the bridge, but are making attempt at offensive operations.
It is thought probable that the Cantonese are not actually in Hangchow and thet Chekiang is probably for the time being a: tonomous. There are nevertheless conflicting reports, some suggesting the emergence of southern rule as will be eeen below, The developments within the past 48 hours tend to show that the Cantonese agents had purchased the services of Chen Yi's subordinates, who were merely awaiting word for them to act. It was during the afternoon of Wednesday when they actually took possession of the city as the culmination of we-for-Chékiangese movement, but really as a preliminary ty Cantonese central, This division of 10,000 men has been augmented by about 4,000 of the war-worn third Division, and it is believed, by 3,000 Hunanese, Some reports are to the effect that several thousand Can tonese are not far away, Chen Yi No Traitor Chen Yi was moved to Hangchow by Marshal Sun after Hsia Chao'e short-lived declaration of the Chi-
Kiang independence. Tt is believed that he was loyal and when he saw the turn among his subordinates he retired. His whereabouts is not known, but Chinese reports are to the effect that he is in Shanghai is definitely established that he Gid not turn traitor, choosing rat to, set out, The military effectiveness of the revolting troops is not thought to be very good. The first Division has its arms, which were brough from the north, but no reserve supplies. The third Division is almost depleted of ammunition, while the Hunanese are known to be poorly cavipped. The actual Cantonese troops are thought to be in a similar condition. There is no arsenal in Hangchow and if a determine resistance is to be made supplies of ammunition must, in all probability, be brought in by boat from Canton:
Text read from the printed page and cleaned; old type leaves the occasional error.