Loyung, Jan. 19.
Intelligence reports continue to reach here from Shensi, further confirming an alliance between General Yang Hu-cheng, the rebellious Shenst Pacifeation Commissioner, and Communist bandits, as well as their readiness to defy' the Central Government.
'With General Yang remaining recalcitrant, well informed circles here view the' Shensi situation with extreme pessimism.
'Dispatches reaching here state that Peng Teh-huai, one of the influential Red leaders, has been made Field Commander' in Sion with his troops stationed at Anletsun, " Hsitaochen and Teinshih in the vicinity of San-yuan, which is about thirty miles to the north of Sian.
Tu view of the large number Communist bandits which have rech~
Sian, General Yang Hu-cheng has ordered the appropriation of, '$250,000 for their maintenance. In addition he has sent three truck-loads of ammunition to Sanyuan to replenish the war supplies of the Reds stationed there.
Other messages bear out that the Red bandits are gradually moving eastward, one division of which having arrived at Shanghsien south-eastern Shensi about forty miles from the Honan border. Simultaneously 4,000 Reds are moving from Chingyang in northern Shensi toward] ical, hrevar, there ace in
Text read from the printed page and cleaned; old type leaves the occasional error.