Chengtu, Sept, 7.
The retreat of the Red forces in South Kansu continues and. three divisions have fled to the vicinity of Tungpal.
On the evening of September 2 there was a severe engagement at Chiuchishib, the Reds making a vigorous attack. They were, however, Tepulsed the following morning. On September 2 and 3 a large body of Reds, estimated at 10,000, fled from Asi in the direction of sachsen.
Government planes are keeping the Reds under close observation, and they report that a large body of the communist-bandits are lying perdu in the region south of Paotso, which is confirmatory of the message sent on September 5. There is reason to suppose that another large body of Reds is hiding in the neighbourhood of the Pachuho River—Reuter, wea Leagers surrender Chengtu, Sept. 8.
The surrender of Wang j-tao, Commander of the "Red" Flying Column along the Szechuen-Yunnan-Kweichow border, has been accepted by General Chiang Kai-shek, Presi-Gent. of the Biliary Affairs Com-
The bandit leader together with his brother, Wang Yuan-hsi, is at present awaiting orders from Gen. IChiang at the Special Administrative Commissioner'e Office for the 7th Area in Luhsien, southern Szechuen.
Text read from the printed page and cleaned; old type leaves the occasional error.