Turning to the military situation, M. Escarra stated that foreign military observers, particularly the Germans, had not a very high opinion of the Japanese Army, although up to the present it has been superior in many respects to the Chinese Army.
The Chinese Army is improving constantly and the new courageous, intelligent, and disciplined Chinese soldier is viewed very favourably by technicians. The battle of Taierchwang is considered as having been a set back for the Japanese Army and an event of extremely great significance in the history of Asia. standing fact is the industrial development and the activity of factories transferred. from Shanghai to the western provinces.
Text read from the printed page and cleaned; old type leaves the occasional error.