In a leading article today on the expected default on the Shanghai-
Nanking Railway bonds and the weakness of the Chinese dollar, the "Financial News" says any assumption that the Chinese economic system is becoming so impoverished that further prosecution of the war may oon impossible is certainly premature, The most that the weakening of the dollar means, the article con-t is that the Government will have to pay rore for supplies of war material, but cannot mean that the end of Chinese resistance is near An the journal asserts, signs, point-to a protracted struggle lasting perhaps for years, the implications of which for the economic system of Japan are very serious, The size of the Japanese budget deficit is already staggering and, although totalitarian economy can bear a tremendous strain, it cannot indefinitel; ance expenditure of such magnitude, The implications for China are also far-ching. ghting a ar on guerilla partisan lines might well lead; especially if the Chinese are ultimately successful recrudescence of nationalist feeling and the emergence of a more united China, the paper acludes,—Reuter ing Communists From the same source it Large Number of functionaries, two Stachanoff workers Ogpu Take Precautions victim of the plotters w case be terpreter as a test of Italian intentions; they conclude.—Havas.
Text read from the printed page and cleaned; old type leaves the occasional error.