'The Japanese army, foreign observ believe, will try to drive a edge between the Chinese forces 50 to divide them in two, This edge, it is thought, will be ham-ered' westward between the Yang-and the Yellow rivers.
While no quick success against the hinese armies is expected, Japanese ireless hope that events will tend gradually to weaken and finally jove the authority of the Central vernment and correspondingly irengthen and eventually establish of the Japanese-fostered regimes 1 the occupied areas.
'A noteworthy Japanese view on situation is provided by the Diplomatic Review," a non-official apanese monthly "journal, which tien reflects the views of Japanese Melaldom.
an article entitled "What Will allow the Fall of Hankow?" the Diplomatic Review" says—"The new situation which will re-ult from the fall of Hankow deserves alling the attention of the Gov nent and people to the following oints:—
The Fourth Stage "1. 'The capture of the great city it' mark the entry of our military berations into their fourth stage. Our itary activities will not cease with new victory: the mopping-up of ne conquered provinces will be seems to lack power, at the present moment at any rate, If the foreign Powers still continue to sup~ port' Chiang's regime, it will be precisely due to the absence of China affair should bring about entire dissipation of Sino-Japanese friction, Present events are not a war between Japan and China: they have [not the character of racial fighting. The rear object of this campaign is {to crush the power of Chiang Kaishek, who 1s responsible for the degeneration of the Chinese people.
"We wish to save China and establish in the whole of the Far East eternal peace. That is why we all the present action a holy war.
"Unfortunately, however, the anti-Japanese campaign carried on by the Kuomintang for the past ten years has resulted in masses of the Chinese people not understanding the high ideal which is the source fof our inspiration. In China people fare induced to entertain hatred toward the Japanese race. Our diplomacy, also, is hardly immune, has not reached the Chinese masses. All Japan's achievements: in China—military, political and economie—should above all, deavour to captivate the heart of the: Chinese people.
Common Raclal System "5, It is advisable to establish a common racial system which will unite the two nations of Japan and China, The old international theory that China is on independent country with which Japan should maintain normal diplomatic relations must be refuted. Another theory equally fo be refused is that which regards China as a conquered country which should yield to every Japanese exency. The tomer theory represents European-American idealism, and the latter is a manifestation of misapplied imperialism.
Far Eastern amalgamation that we should prepare, "The lot of the Chinese people is that it is called upon to melt with the expanding Japanese people. There will be no conqueror nor conquered, no winer nor loser. The Oriental race will forget its past quarrels to) establish a trio paradise. It is the creation of a new Asia that falls to) the lot of the Japanese people.
"But for succeeding in such an enterprise, it is not, brains formed after European or American fashions. that are capable of directing our' activities, The intellectual elite of Japan should help our officials and offer them useful advice."—Reuter.
Dr, Wellington Koo and Mr, Quo Taichi fo seek ancial assistance from Britain and France if the League of Nations refuses to invoke Article 17 of the covenant, according to reports from usually reliable sources last night, Diplomatic observers predicted that the Hankow Government's request for the invocation of Article 17 will not succeed, They pointed jour that European unrest over the [Sudeten question leaves no chance for its success. Diplomatic quarters were keenly interested in the appeal of the Chiang Kai-shek regime, 'The observers said that a serious drain on Chinese financial resources is taking place, as demonstrated by "steady decrease in monthly—payments abroad for munity chased,' pees Reports received here said Me, Chen Kuang-pu, a leading financier, had left for America en route 10 Europe for the purpose of trying to float new loans for the Hankow
Text read from the printed page and cleaned; old type leaves the occasional error.