The Archive · 1937

*SO WE SHALL BE ABLE TO COPE WITH THE LATEST MENACE" SHANGHAI

FURTHER WITHDRAWALS

The Chinese forces are still yielding to the dvance. The with= ipates expectations of lo on that line and it is apparent "that the defenders have not yet been able to reorganize for.meeting the Japanese offensive which received such impetus from the turning of the right flank by" the landing at Chapoo. it is probable that the interest in the situation will now shift to the Yangtze boom which the Japanese are credited with intentions 0 attack, Japanese reports lay stress on the demoralization of prisoners who have been captured In recent engagements They must be accepted with due reserve. but It cannot be denied that the Chinese forces Ihave suffered such heavy losses that for the time being they are desperately endeavouring to secure breathing space.for the necessary rehabilitation of their sorely-harassed ranks. From Nanking the word is still of resistance fand the suggestion that the time has chine to consider means of determining hostilities is vigorously scouted. Here it is quite impossible to gauge the exact significance of this attitude. Japanese confidence talks now of an unopposed fantry Into the capital before December is out The event will tell how far that view is justified.

Text read from the printed page and cleaned; old type leaves the occasional error.

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