Hsuchow, Sept. 14.
Severe fighting west of the Pe-1g-Hankow Railway between the left wing Government forces under General Yang Fu-chen and the Kuominchun rebels is still in ps0 gress, with the Government troops [steadily gaining ground and converge ing on Loyang from the east and south.
According to a report from Gen-feral Yang, the district of Tsuyu, south of Loyang, was occupied by his units on the 12th inst. after a fierce engagement with the re-libels. The courage displayed by the Government officers and soldiers Jduring the attack is specially commented upon in the telegram. General Yang expresses his confidence that Loyang will b shortly in the hands of the Government troops.
Another defeat was cuffered yesterday by the Kuominchun rebels under General Sung Che-yuan and Sun Liang-chen in the Lungmen re-zion, south-east of Loyang. In Uattle which lasted 24 hours, definite policy has been decided!
According to the reports, the! Shantung Generals will declare] heir desire to cease fighting and the suggestion is that in such case Shantang might become a neutral] zone or a buffer State between Nan-King and the Northern Coalition. Then if further battles were fought, they would have to be fought on the, [Lunghai or Peking-Hankow railway fronts.
Possibly the foundation of these! reports is the knowledge that the Shantung generals have been sworn! friends for a long time. Among' the Chinese they are known as "Grey Generals", or men of considerable experience and perspic-
Practically al leaders are mentioned as being in favour of this "peace movement for Shantung"—Generals Han Fuchu, Ma Hung-kuei, Shih Vu-san and Chen Tiao-yean. Curiously enough, how-lever, the reports do not make ref-Jerence to the shuffling of political Posts among these militarists car Hied out by Nanking a few days. ago. It will be recalled that just recently General Han Fuchu was} appointed Chairman of the Shantung Provincial Government in place of General Chen Tiao-yuan, was transferred to Anhui as Chairman. General Ma Hung-huei was appointed a member of the! Shantung Government while General Ma Fu-hsiang, his father, was named as Chairman of the Mongolian and Tibetan Affairs Committee, a position formerly held by General Yen Hsi-shan. stated that a large number of the Mukden, Sept. insurgents was captured, while the Excepting General Tang Yueh-rear have retreated to Loyang with almost all of the big chiefs of our troops pressing closely in pur-the Mukden military faction have! suit, now amembled in Mukden for the!
While the centr purpose of taking part in the along the Lung-Ha Supreme Political Council which is paratively quite, iti definitely to fix the attitude of Government 54th and 47th divisions Mukden political group as a whole have effected junction with toward the North-South strife now other and are heading for being waged with Central China as chow to attack that city, The reits dramatic stage. bels concentrated within Chengchow Preliminary consultations leading fare reported to have decided upon. to the formal meeting to be opened evacuating the city and are proparshortly have teen carried on ever ing to withdraw to the northern since the 10th. During this period, bank of the Yellow River—Kuo the views of the various military Jehiettains have been exchanged and What ix Mukden's Next Move? explained.
Among others, General Chang] Peking, Sept. 13.
Teo-hsiang is reliably reported to to the effect that have advocated that Mukden can ther issue a circular not actively assist the nowly created tion between Northern Government because of the North and the South or come. various internal circumstances. He forward as an arbiter of peace fs said to have crumerated, among through military intervention, others, (1) the alleged' loss of jevadually gaining ground here, morale by the Mukden soldiers ever Im addition to this, there is since the Rusto-Chinese military] reported the formation of a strong Jelash, (2) the permeation of Com-third military group, comprising munist ideas in Manchuria, the such militarists as Generals Shi Vu-san, Han Fuchu, Ma Kung-fei slump of silver and (3), the de-Chen Tiao-yuan and' other military vastation caused by floods. For chieftains, who are sai these reasons, General Chang Teo-hsiang is stateq to have emphatic ally advocated an attitude of neva view to bringing about the forcible cessation of hostili {trality and to have urged the Muk-between Nanking and Peking in den faction to adopt the role of ce-operation with the peace move-mediator only when the North and mont of the Mukden faction. the South have found grounds for!
There is a likelihood, it is said [compromise among themselves.
well informed quarters, that these Tt is true that there are Mukden militarists will take concrete steps. militarists, who would like to ¢o-toward the termination of internal Joperate with the Northern Govern-warfare by bringing pressure on ment, but this element does not! both the Northern and the Southern appear to like to press their views forees—Rengo. openly just now, while other groups, Peking, Sept. 13. including General Sun 'Chuan-fang, As the result of a conference Jdesire to define a definite attitude 'Tehchow, in which General Chang stter the North and the South have Ying-wu' and other leading Shansi worn themselves out by fighting. generals, participated, General Yen 'Taken everything as a whole, Usisshan has decided' to launch an Jwhile there are strong elements in offensive against the Nanking for-cos, utilizing the entire available Jcoalition, it is believed dikely that favour of joining the Northern si troops in the Ticntsin-Sakden' wi eventually "accae ts adopt a Pukow area, numbering something ike 60,000, with a view to turing Tsinan. The offensive Mukden Faction to Stand Aloo will be started within a week, Peking, Sept. 15, After having arranged this General Yen left Tehchow this after-According to a report received by: noon at 4 ételock: for Chang-bsintien.
Text read from the printed page and cleaned; old type leaves the occasional error.