Nantangchow district, on the north bank of the Yangtze mouth, and Tsungming Island in ihe Yangtze off Woosung were occupied by Japanese forces on Thursday. Hitherto, the course of Japanese operations has left this district neglected as more important objectives were in view and these isolated points were of little importance although Chinese forces, said to be of a police character, were still stationed there. Nantungchow was bombed at an early stage of the hostilities when a mission hospital suffered heavily, but since that time little attention was paid to the area which enabled an encouraging volume of shipping activity between Shanghai and Nantungchow. Cargo transhipment became possible, using a series of creeks to transport cargo around the boom created by the Chinese near Kiangyin, and the very important problem of food supplies from the hinterland for Shanghai's millions has been considerably alleviated as shipping activity along The Bund\ has plainly indicated. The question now arises: Will this source of supplies be closed /or food transport facilities restricted? Japanese occupation of various parts of China has generally resulted in a disinclination to permit easily free access or speedy resumption of normal business activities.—The Chinese authorities provided the first obstacle some days ago when Tiensungkiang, the port of Nantungchow, was closed and the result has been, according to local inquiries, a considerable increase in food prices. In-the case of pork, it is reported that the present price is 52 per cent, higher than a week ago—an increase out of all proportion to conditions. This, of course, is not the result of the Japanese operations. Military, naval and air force units successfully completed their plan in the Nantungchow district within two hours and the operations were carried out after due warning had been conveyed to foreign shipping. Now in control of this district, it is hoped that the Japanese will do all in their power to permit re-opening and the restoration of the food trade which means so much to Shanghai,
Text read from the printed page and cleaned; old type leaves the occasional error.