Shanghai, Oct, 28, GRUNNED Shanghai watched with shocked horror yesterday the awful aftermath of the hostilities in Chapei, appalled as fire after fire broke out, from before dawn all through the day, until the whole of its northern Chinese city was wrapped in flame. Numbed crowds gazed upwards at the four-mile long cliff of smoke, towering many thousands of feet into the air and drifting in the light southerly' wind, throwing its gloomy pall over the countryside as far as Woosung, and beyond over the Yangtze River where Japan's mighty fleet lies concentrated.
For seventy-five days the gallantry of the Chinese defenders, inadequately equipped against the modern mechanized forces of Japan, trusting to their numbers and courage, suffering the pounding of heavy artillery and the di laily blasting of the bombs which shook all of Shanghi i, had evoked the admiration of the world. When Tazang fell, as the Japanese threw their strength into the big offensive on the week-end, human flesh and blood could not be expected to stand more, and the divisions fell back during the night, orderly and swift, so that when morning came, instead of being bottled up in the salient, they were out, leaving only a few scattered units fighting rear-guard actions.
Indeed, one of these units, in a godown near Ni forth Thibet Road, along the Soochow Creek, was still in possession last night, all efforts of the Japanese to dislodge them proving ineffective.
The tramp of the marching divisions and their silhouettes "against the sky along the Shanghal-Hangchow Railway tine and the Chung san Road skirting the Western perimeter, told of unusual activity early on "Tuesday evening, though until just before dawn yesterday word of evacuation could confirmed, for as many Chinese troops were crossing the Chungsan Bridge and the" Jessileld Railway bridge northwards as southwards. 'This may have been to keep their true intentions from" the Japanese Beroplanes who were overhead, drop= ing' parachute Mares" to keep observation of their movements. By own, however, there was little Goubt, as the first of the big fires sprang jup in the beleaguered area, and the tramp of marching feet became quieter, Late yesterday afternoon, Japanese units had reached positions thirty yards north of Jessfield Railway bridge, where they were plainly Visible to observers. During the day their slow but "steady progress hrough Chapel along the north bani of the Soochow Creek, had been watched by hundreds from the South side. Land mines and booby traps held up their advance, and caution was the order of the day.
Units Trapped In spite of the swift withdrawal, several small Chinese units. were trapped in the area,, and horrified observers. were given' a close-up on some occasions of the reality of war, 8 the Japanese grimly set" about Geapatehing these little bands 'Successfully ncross to the south side of the Soochow Creek in the Hungjao trea, the Chinese forces after dark Inst night set about trying to blow up the Chungsan Bridge, already badly damaged during the past weeks' Japanese bombing, and the railway bridge. Two attempts were made with the latter, both without full sue cess, however, and the close proxlmity of the Japanese made further attempts, which Were still being made, extremely hazardous. straight line from the Soochow Creek fat the Seltlement's boundary to the Yangtze 'River at' Liuho,. according to the official communique issued by the General Headquarters of the Chinese forces. Retirement from the salient at Kiangwan and Chapel has considerably shortened their lines, it was pointed out, and further that the new positions are beyond the effec tive range of the Japanese naval guns on the Whangpoo River.
Answering the often spoken query why this move was not made earlier, the communique stated that the delay had been due to the national deter mination to make the invaders pay heavily for every inch of ground gained at Shanghai. It went on to say that the new positions do not isolate Shanghai from the hinterland, the entire areas south of the Soo chow' Creek, including Nantao and Pootung, are still firmly held. - The morale of the troops remains exceed= ingly high, the communique con-
From a Vantage pol Western "District a "North-China ly. News" reporter watched the firing of the Chapel sector very early yesterday morning. Shorlly after dawn broke, eight huge fires started on a ling drawn roughly from North Thibet Road Bridge out to Markham Road, and while these spread slowly and a northeasterly wind blew the smoke away from the Settlement, other ffres were started apparently, with kerosene, from the colour of the smoke.
'A large quantity of black smoke and huge tongues of Dame poured up Into the sky from an early hour from what seemed to be an all-yard just over the creek and sughly to the east of the Sinza water-tower. Noarer North Thibet Road, a small party of Chinese soldiers were Chenja Sala Taken Late in the afternoon came Japat ese reports of the capture of Chenju village, south of the Shanghai-Nanking railway, and unconfirmed reports had ft that their units had actually penetrated Nanziang Sselt, this area was heavily strafed from the air by the Japanese, who nevertheless seemed to concentrate their aerial activity around the, Western Perimeter where bombing sind—mi chine-gunning was kept up on the Chinese troops in their new positions, and the unfortunate, hordes of refugees throughout the day. On several occasions they flew just over the British positions, warning fire being opened on them twice by the British forces in occupation there.
No less than three of their planes were brought down in the Hungjao area, one early in the morning, and two others around 3 pin., when they collided in mid-air and fell to the ground, Five thousand refugees were taken through the gates along the perime-(er, Chinese soldiers assisting the Bri-{ish troops manning the boundary in keeping order, a very necessary and gratefully received assistance, for there were near riots as the terrified country-people tried to rush the bar-
China's New Positions The new line to which the Chinese have fajien back runs in almost a
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