The Chinese forces are still yielding to the pressure of the Japanese advance. The withdrawal from Wusih dissipates expectations of a stand being made 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 to 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 have 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 and the suggestion that the time has come 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 entry 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.