On the whole, the Generalissimo commented, the national situation ws good and the Government is being carried on efficiently considering the Himited "finances at its disposal. Retrenchments are being carried out and these undoubtedly will prove ins creasingly beneficial to the nation.
"there is no need to reduce the number of troops," answered Gen. Chiang when questioned on this sub-feet, but it is" necessary to reform their modes of living. The men are being trained for the future as farmers and road builders. During the past two years, he mentioned the fact that the army has been ordered to assist the farmers and has also built more than 1,800 miles of highways in Kiangst alone, The general was next questioned concerning the. Communist-bandit suppression campaign, "I have issued orders for the wiping out of all Communists in the remaining six districts of Kiangsi before the end of this year, he said. "Seventy hsien have been under the Communists, Dut of these only six have not been recovered. Of course, there are roving bands in some districts but these will be quickly exterminated."
'Queried as to the source of the Reds' munitions, Gen. Chiang ad: mitted that most of these had been taken from. defeated Government troops, but, he said, "I am glad to say that none of the Government troops have surrendered since the beginning of this year. The bandits have had no chance to replenish their supplies. This is resulting in 4 shortage of ammunition
Text read from the printed page and cleaned; old type leaves the occasional error.