In the course of a statement to 2 representative of the of Gon. Ho Yirg-yin, said that Gen. Lai has refused to accept orders from Gen. Pei Chung-hsi (who, together with Gen. Ho, is Director-General of Operations) when order-advance on the enemy at Lins chin, Shantung. He was ordered by Gen. Ho to move his troops. across the Yangtze to attack Sun Chuan-fang but declined to do so, resulting in severe reverses for the ynalist Army and the menacing of the Nationalist seat of Government. The pitch was reached when he held up the supplies of the army, thus seriously endangering the men in the front lines. For these reasons,, he was dismissed from his post and the warrant was issued for his arrest.
Gen. Lai's men have issued circular telegram swearing their allegiance to the Nationalist cause and promising to support Gen, Liv Shi-yi, their acting commander, i respective of the fact that Gen. Lai has been taken into custody, They. say that they are fighting for the Nationalist cause and not for Gen. Lai personally.
Text read from the printed page and cleaned; old type leaves the occasional error.