Shanghai, Aug. 8.
"Piecing together various accounts from Chinese merchants and soldier" who have returned to Wahu frota|i wuchowfu and Pengpu, the Nationalist forces have ercehing defeat part of July Heuchow and Lincheng, says a Wala message dated August 6 received in Shanghai this afternocr.
The message further staree "Though General Chiang endeavoured to gather his rented men at Pengpu, the Nationalist forces suffered a loss of one-third of the whole army. Especially, the armies under Generals Wang Tien-pai and Yeh Kai-shin have almost been annihilated and the remaining soldiers appear to have no fighting spirit. If things go on like this, the Nationalist forces will find if very difficult to stem the advance of the Shantang troops. Pengpu wax still in the hands of the Nationalist forces on August 1. The Shantunig troops are now stationed in the region of Kuchen, but there are no signs of their further advance rt present.'—Tohe.
Text read from the printed page and cleaned; old type leaves the occasional error.