Pientsin, Oct, 2.
'AIYUANEU, provincial capital of Shansi, is believed doomed following the reported penetration of the inner loop of the Great Wall in North Shansi by ti the Japanese and their capture of Taichow, 80 miles north of Taiyuan.
Although a rear-guard action probably be fought by the Chinese in Shihling Pass, midway between Taichow and the capital, the fall of Taiyuan is regarded as imminent, The Chinese debacle in Shansi, which has extended to the west with the Japanese capture of Ningwu, has come as a great shock'to the Chinese in North China, especially after the optimism aroused by recent claims that Gen. Chu Teh, the Communist leader, had wiped out a Japanese division in north-east Shansi.
"According to Japanese sources, Gen. Yen j-shan, Pacification Corfimissioner of Shansi and Suiyuan, has fled from Taiyuan, after removing the body of his deceased father from Hopientsun, to the south. Gen, Yen is also porte to have transferred the capital to Linfeng, formerly Pingya in south Shansi, Meanwhile, Taiyuan is in panic.
The' Japanese military authorities state that ten Chinese divisions are retreating in confusion through nar~ Tow passes from Taichow and that they are being bombed incessantly.
elaborate prepa ade in. the Jay Chinese city hereto celebrate the Japanese vietory.—Reuter, Chinese Win Back Towns Tsinan, Oct. 2.
Following @ successtut' counteratlaek since Thursday" night, Chinese tenders yesterday recaptured Fe chiakou. and Potowehen, impor towns-on the Tsinpu line about ten and. thirty kilometres "respectively, south of Tsangchow, according to 4 military report received here late last night, Chinese troops are now steadily advancing along the Tsinpt line One Japanese plane was. sighted over Tehchow, a. railway. town. in northern Shoniung, yesterday. Atter lreling over the ells, the machin Gropped cone bomb on the Fulung Middle School with" the resultant amage stil unknown.—Centeal News,
Text read from the printed page and cleaned; old type leaves the occasional error.