Nanking, Oct. 3.
A long-distance telephone call received here this morning. from Shihchiachuang gave a more optimism tie picture of the situation in north Shansi.
Chinese troops, it was stated, were still holding Yenmenkwan. Japanese troops had entered Pingbsingkwan and attacked the right flank of the Chinese forces eastward of Yenmenkwan, The Chinese troops retired and then formed a new line resembling a long hook, with Yenmenkwan forming the top, and extending down. towards Taichow, with Yuanping as the base. The line then goes eastward and curves northward again, with Wutai as the tip of the hook.
General Yen Hsi-shan, Pacification Commissioner of Shansi and Suiyuan, is directing operations at the front. The Japanese report that he had fled from Taiyuan was denied.—Reuter.
Text read from the printed page and cleaned; old type leaves the occasional error.