reported from reliable sourcer that General Feng Yuchsiang has moved eight divisions of the Northwestern Army into Shantang in anticipation of a large scale oc-¢upation of the province by the former Shantung-Chihli forces under General Liu Chen-nien, who is said to have received ' considerable financial support from former adherents of the Anfu Party, General Liu makes his headquarters Rt Chefoo. It is also reported that Liu's movement is planned to synchronize with a similar movement in Manchuria, "aimed against General Chang Hsueh-liring.
At the Disbandment Conferené St was agreed that, in the event of the evacuation of the 20 li zone by the Japanese, General Feng would vecupy Shantung except for a re-ion on the Shantung-Kiangsu order which would be under the control of the old Fourth Army, now the Fourth Division of General Whinng Kai-shek's army (Ist Group). General Feng is, however, apparently not waiting for the com= pletion of the Sino-Japanese negotiations, but is proceeding with ihis plans according to the exigencies of the military "developments in North China,
Text read from the printed page and cleaned; old type leaves the occasional error.