Renewal of Communist Activity In Yangtze Valley to Evacuation of City: Government Troops Flee Changsha, the Capital of Hunan, has been evacuated by foreigners, and the Government troops are reported to be retreating across the river. In view of the fact that the Siang River is falling the evacuation of the foreigners may be attefded with some difficulty.
Fresh communist activity in Kiangsi is reported, id small towns are being looted.
Government troops are carrying out operations to the south of Nanchang along the Kan River, but the situation has now become critical by the appearance of a communist army several thousand strong between the Government forces and Nanchang, In view of this situation, Kiukiang has been denuded of troops in order to strengthen Nanchang, but it is feared that the garrison there will be insufficient to hold the place. Already 1,100 refugees, including the Governor' wife, have arrived at Kiukiang. There are only about 200 troops at Kiukiang, while a bandit force has established itself at Juitung about 20 miles away.
Communists are reported to be active along the middle Yangtze, and at a point above Chenglin have been firing with two muzzle loaders against passing shipping. These were loaded with grape shot and nails, On July 23, the day after the firing was reported, H.M.S. Aphis arrived on the scene but the guns had been removed. She, ho ever destroyed the emplacement take the Shantung eapitat from the Kao-Tsi railway.
+Peking, July 28.
Foreign official reports show that there have been alarming develop:
ints. of the communist menace in Kiangsi_and Hunan, A well armed Red force is stated to have captured Nanchang, It Is reported that General Liu Hsing is attempting to raise a foreed loan at Chungking for the purpose of financing an expedition by Yang Sen in aid of the Nation lets, In view of the situation and the progress of fighting on the north Cattle front, General Chiang shek has changed his plans for the offensive to recapture Tsinanfu, which fell into the hands of the Shansi forces when General Han Fu-chu abandoned the city. Instead] of advancing direct on the city, GeneralChiang, according to Nai reports, will concentrate on Shantung and attempt to Two bands which have beet operating in northern and eastern Hunan have new combined to form disciplined army of 10,000 strong. This army advanced from Finghsiang towards Changsha, Government troops which were sent against it were defeated on July 25 fand fell back to a line 25 miles from Changsha. According to the latest. information, however, the Government forces have again been defeated and the Reds are naw attacking Changsha, British, American and Japanese gunboats are evacuating all for; igners from Changsha,—Reuter,
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