Hangchow, Jan. 2.
Three events yesterday marked the advent of 1938 here. A peace maintenance commission was formed; rail trate with Shanghai was restored, and the aerodrome greeted its first Japanese "plane, Contrary to Chinese reports of an impending major" encounter for the possession of the city, Japanese troops spent the day enjoying the natural beauties of the famous lakeside resort, Except those on guard duty, all Japanese soldiers went about armed only with their bayonets, Rail connections were restored with the arrival of a Japanese military armoured train from Changon. The aerial visitor was an Army machine.
Text read from the printed page and cleaned; old type leaves the occasional error.