Some travellers have recently returned from the Chinese areas of central Hopei and report much optimism among the leaders of that regime, The area is developing quietly and men are being trained for resistance to Japanese incursions and for guerilla forays. I have seen authentic photographs by foreign visitors which show workshops turning out rifles and carbines together with photographs of the finish-weapons. Ammunition is also being made and I have seen pictures also of potato-masher grenades and trench mortar shells made in the same area, They all appear to be a very workmanlike job, They have no means of making high explosives, however, which accounts for their inability seriously to cripple the railways by blowing up bridges.
The leaders are reported to be optimistic about holding that section of.east Hopei they have taken. It is apparent from Japanese reports that action against this guerilla area has been along the fringes and that no serious attempt to invade gue-ulla-held territory in east Hopei has yet been made.
It is confirmed that some guerillas have penetrated the Great Wall and entered Jehol, which is reported to have been lightly held by Japanese troops since the Changkaofeng affair, most troops having moved towards the borders. It is suggested that the guerillas will attempt to make contact with Outer Mongolia for the purpose of adding to supplies by that route. Even Japanese officials admit that this is the possible intention of guerillas, whose activities seem to grow better organized as time progresses. They still seem curiously futile in the matter of damaging seriously railway communication but the number of their attacks on communications have i creased and undoubtedly this is causing the Japanese command some concern.
Text read from the printed page and cleaned; old type leaves the occasional error.