Hankow, Aug. 26.
According to a message which reached the Hankow military het quarters this afternoon regarding the reported retreat of the troops under the command of Gen. Ho Chien, it is confirmed that the Communist army, some 5,000 strong, under the command of the Communist leaders, Pao Teh-huei, Chu Teh and Mou Tse-tung have entered Liuyang following the evacuation of the locality by the Ho Chien troops.
In this connection it is further reported that Gen, Ho Chien, who is now staying at Yungantze, is ex~ pected to fight a decisive battle with the Ocmmunist army at Chunhwa. shan, while Gen, Tai Tou-kuan of missing tle in the neighbourhood of Wenchiatze on the Hunan-Kiangsi border.
In consequence wild rumours are circulating in Changsha rev again a threatening situation, and the Japanese residents living in the native city have withdrawn to Shui-
Tinchow.
Owing to the threatening situation, Chinese merchants have tel graphically requested the Stook Exchange to suspend ment of cargo for the time being Renzo.
Text read from the printed page and cleaned; old type leaves the occasional error.