General Pei Chung-hsi is maine taining the ponce of the Chinese territory with the smallest number of troops ever known tobe sembled in the vicinity of She There are not more Nationalist troops in Shanghai, ac= cording to yellable estimates from Chinese sources. General Ho Ying= only tras 10,000 troops to hold Hangchow. The military forces of General Chiang Kai-shek are now So scattered over so vast an area as. not to be very valuable either for offensive purposes in warfare or for the suppression of the labourers. The Communists are taking advant= age of General Ching's position to attack him because they realize that he must gather his forces to one central point before he can ac= complish anything big in a military The Ministers of the Nationalist Government intended to come to Shanghai to establish a Government, id to reorganize the entire Customs service, according to one source of information, The Nanking: episode, however, seems to have had the effect of changing their minds. They are now all remaining in Hankow. The result is that there still is no responsible civilian in Shanghai at the present time and all apointments which are locally an= nounerd seem' almost to be self= appointments.
Text read from the printed page and cleaned; old type leaves the occasional error.