No Surrender to Japan; Second Phase of War Just Starting Chungking, Dec. 13, The "Ta Kung Pao" this morning published an exclusive report to the effect that the Chinese highest cor mands reviewed the military situation a meeting yesterday," following which, it was stated, the Generalsimo expressed complete optimism as regards the future military situs-
The Generalissimo is said to have declared:
"Japan, as a first class Power, after 18 months of hostilities, using her entire army, naval and' air forces, has only succeeded in capturing a few points along the communication lines.
"Although Nanchang and Changsha are vital points from the standpoint of military strategy. the Japanese have failed to capture these cities after the fall of Hankow and Canton."
The Japanese, General Chiang is reported to have stated, have been operating on the level plains to the east of the Peiping-Hankow Railway.
"After this" he is said to have Chinese forces will move northwards.
Wherens if the Japanese push westward, the Chinese will move east~ ward!
The success of such tactics, the General went on, had been demonstrated by the fact that six Japanese divisions were at present stationed Shansi, "but are unable to control the province.
The Japanese forces have so succeeded in occupying only a points over large, areas, he claimed, For example, they held only Tsing /Tsinan and Tsining in Shantung province, and Wuhu, Anking, Hotel and Pengpu in Anhwei province, The Japanese, General Pai declared, must station troops at widely scatter-fed points in China, thereby restricting, their movement; whereas the Chinese army. from now on, would—strike wherever they liked.
The general, in conclusion, stated that the Chinese troops still occupy sections of the Peiping-Hankow Rallway, between Chengchow and Sin-stated, "they will have to engage the Chinese troops in the mountainous areas.
"It is a mistake to classify the fall of Nanking as marking the conclusion of the first period in the Sino-Japanese hostilities, the fall of Hsuchow fu as the end of the second, and the fall of Hankow as the conclusion of, the third.
"We may properly say that the present moment marks the conclusion of the first period in the hostilities, whereas the second period is only Just" boginning,"—Reuter.
Text read from the printed page and cleaned; old type leaves the occasional error.