Rumour is rife here that Marshal Feng Vu-hsiang, who is now staying in Russia, has concluded a $3,000,000 loan with the Soviet Government, granting concessions in Mongolia to the Soviet Government in return. The Soviet authorities, however, deny the The Shansi forces who are co-' operating with those of General Wei Yi-san have apparently been making substantial progress, however, and though the Fengtien troops at Dolonor apparently have not yet advanced there seems to be some ground for the renewed reports that the Kuominchun are preparing to move on to Kansu, Marshal Wu Pei-fu asserts complete confidence regarding the result of the anti-Red campaign, which he says must be carried out until the Kuominchun organization is destroyed, in accordance with his agreement with Marshal Chang Tso-lin before any further steps are taken as regards reconstruction of the Peking administration.
The cessation of rain is expected to bring more important military developments soon, uly 21.
The local authorities continue to give out optimistic communiqués and circular telegrams which it is impossible effectually to cheek.
The Peking garrison headquarters says that General Chang Chung-chang on July 19 sent out a circular telegram from Shaho as follows: "Our troops to-day occupied Chaotai and Peichaotai and suppressed General Chen. Ting-chi untiners, some of whom have becom mixed up with the Kuominchun in|* the region of Nanerhho. We took hho on July 19 and captured several hundreds "including some of Chen's nrople, Many of our enemies were killed: Our casual several "non-commissioned officers and 167 soldiers wounded The enemy in that region are retreating to Auyuying: the 20th Allied Division are pursuing them, At Nankou two allied divisions and brigade are engaged in a hot ight ith the enemy. We have taken Peiyangcheng.
Telegraphing on July 18, General Wei Yi-san says that his men are advancing: they have taken Lotoshan on the right and Lingpelhsian. fu on the left flank,
Text read from the printed page and cleaned; old type leaves the occasional error.