-Hamkow, Aug. 15.
The situation in the Yangtze Valley hes" Guring the week taken turn for the better, the Communist menace in the three provinces of Hupeh, Hunan and Kiangsi having definitely diminished.
Although the marauders are for from being completely annihilate! the general outlook has become brighter as they have been drives Jaway from the strategic points and laze heading for their original nests in the mountainous region. On the Peking-Hankow railway the bandi menace was dwindled making it possible for the line to resume its ex-Press service. The normal running'
trains from Hankow to Yenehes is taken to be an indication that the railway area is now free from bandit or Communist threats, The tension in Wuhan is slowly but steadily decreasing, and it does not appear likely now that ther: will be any internal uprising or ar attack from outside, The campaign of ist the Communists has bee. So thorough that if there had beer any Reds at all they would have been all nabbed. The authorities have during the week left no. stone unturned in their hunt for undesirable ard they have certainly succeeded in nipping the plot of the Reds in the bud." Beheadings have been the main feature and have Proved to be an effective crime de-torrent. The past week in Wuhan has been a week of executiors, Tumours, fear and martial law.
"In Changsha conditions remain viet, but the process of retail int is continuing. Reports have it that since the return of the provincial troops to the city over 2,000 Jeged Communists have been put '9 death. "Local ruffians, coolies and sampan-men are all under suspicion and not a small number of them Who were found to be in possession Of lot, have been massacred. Gen, Ho Chien, Governor of the province, who is blamed for failure to pro. tect Changsha from the Communist Attack, is at the front and appears to be determined to kill as man? Communists, as he possibly can in order to reduce his guilt.
The provincial troops have been successful in driving the Reds' farther and farther from Changsha and according to official reports they ye captured Liuyang and Ping-Kiang from Peng Teh-hui's men. Tt appears that the present worry of the merchants at Changsha if not a recurrence of the Red outrage Dut how to comply with the request of General Ho Chien for the sun of $100,000 for paying Business men in Changsha been bled white and to raise $400, 000 is next to impossibility.
Meanwhile Hankow bankers. asd merchants are facing a similar problem. The government is asking for $3,000,000. They are told money must be obtained at any cout and at an early date for the war is still hanging in the balance and must not be affected by the shortage of furds.—United Press.
Text read from the printed page and cleaned; old type leaves the occasional error.