Shanghai, Mar. 17.
Growing increasingly nervous over the rumours of a forthcoming attack fon South China by Japanese troops, the Nationalist Government is making strenuous efforts to ferret out spies in all parts of the country, local Supanese newspapers said yesterday.
Seized in one of the sweeping "spy hunts," Mrs, Chen Yi, Japanese wife of Gen, Chen Yi, Chairman of the Pukien Provincial Government, now is in custody in Chungking, the papers stated.
She was arrested on orders of the Nationalist Government because of are deemed indispensable. The workability of the Control, it is generally emphasized, largely depends on the Gistribution of exchange being im-Fartially administered.
"A declaration by' the Chinese Government, assuring foreign holders} silver debentures of their continued ability to draw interest in sterling, would be widely welcomed.
News of the imposition of exchange regulations by the Chinese Government, "The Times" stated in a lead. ing article to-day, hardly comes as a surprise in the circumstances with which China is confronted.
At this stage, presumably, the measures are partly precautionary, the Journal adds, although, in the ease of the somewhat similar exchange control by Japan, imports have been increasingly restricted.
Questions on the subject will be put to the Prime Minister, Mr. Neville Chamberlain, in the House of Commons to-morrow by Mr. A. C. Moreing, Conservative member "for
Text read from the printed page and cleaned; old type leaves the occasional error.