'The 'Second Red Army' under the Jcommand of Ho Lung, which have been occupying Sung Tzu, have begun activities, invading neighbouring villages and towns.
In the meanwhile, the "Commun. ist" bandits under the command Li Tangshan, numbering some 5,000, have approached Shasi. As. the result the people in the town sre considerably agitated, it is reported.
The prevalence of bandits in the Upper Yangtze region is gradually Jassuning a serious. aspect with no] prospect of an'early settlement of the civil war in sight—Rengo.
Hankow, July 7.
The town of Shasi, in Hupeh, is now reported to be completely sur-Founded by Communist troops which occupied the wide area opposite Shesi across the river yesterday.
The regulars who had gone for the suppression of the "bandit" troops have withdrawn to the walled town, having been counter attacked by the brigands.
A state of siege was enforced yesterday in Shasi by the local authorities, and mest of the Japanese residents have already taken refuge in the warship Futami, which is standing by on the Yangtze, Rengo.
Text read from the printed page and cleaned; old type leaves the occasional error.