With the fall of Tsingtao and its occupation by Japanese naval forces, save for that portion of southern Shantung which the Chinese have not yet vacated, ¡China's coastline from Shanhaikuan to Hangchow is now under Japanese military domination. That amounts to practically Half its total length. It is not to be expected that the Chinese will remain long in that portion of the province which is still theirs, for the advance of the Japanese northwards from Pukow towards Hsuchowfu must weaken whatever resistance the Chinese contemplate offering along the Lunghai Railway in the defence works which have been under preparation for some considerable time, and the gradual closing of the gap between the Japanese forces coming southwards and those advancing north is creating a trap from which the Chinese commanders will undoubtedly seek to extricate themselves by a rapid retreat to the west. Tsingtao has escaped much damage beyond that which was done to Japanese properties prior to the flight of the Chinese authorities, and the fact that the city was handed over in such comparatively good shape is largely due to the foresight of the foreign residents who took control with assistance of Chinese bodies and maintained peace and good order during the interregnum. The task confronting the Japanese in reorganizing Tsingtao should not be a difficult one. Their previous administration of the place was such as to commend itself to the local Chinese to whom they will not appear the ogres they seem to be in localities to which Japanese control comes as a new experience. That, in all probability, accounts for the fact that, though large numbers of Tsingtag Chinese fled into the country side following the departure of Admiral Shen Hung-lich and his staff, they had already commenced to return as soon as they realized that the situation had developed along lines which precluded any serious fighting in defence of the city. En passant, reference may suitably be made to the manner in which Admiral Shen governed the city during his term of office and the excellent way in which he was developing it.
This further Japanese success coincides with two other important developments. It is clear that the second German attempt to mediate between the two warring countries has failed, and this is realized at a time when the Japanese were about to hold an Imperial Conference, the fifth of its kind in Japanese history. What will be decided at that august meeting, presided over by the Emperor will probably be known by the time these lines appear, but the fact that it has been called at all indicates that important and far-reaching decisions are about to be made. There can be no doubt about it: whether or not the Imperial Conference decides, as some observers believe it will, upon the prosecution of relentless warfare, there will certainly be no amelioration of Japan's present attitude towards China.
Her terms for peace have been announced, they have been resolutely refused by the Chinese government, and all that remains for With the: establishment of an autonomous commission for the administration of Nantao and the Native City a further step has been taken in the move towards the rehabilitation of the areas around Shanghai. It is clear that little could be done without the creation of some such body as that which came into being yesterday afternoon, The two leaders, Messrs, Chen Yun and Ling Chi-tan have been in association with the Japanese for some time, ce-operating with the Japanese Special Service Section. It is unnecessary to indulge in speculation as to the motives underlying the step taken by these men and the other eleven who go to make up the commission, The work they are undertaking has to be done by: someone Or other in the interests of the hundreds of thousands of Chinese who, no matter in what difüculties their country may be involved, have still to carry on, and live and work, Parallels for their action can be found in the history of practically every war since history recorded them, and it is equally necessary now, as in the past that there should be some sort of liaison between the forces occupying a country and its inhabitants. Shanghai is still dismayed at the slowness with which steps are being taken to open up the remainder of the areas around Shanghai. It is necessary that the thousands of farmers taking refuge in the foreign areas should be permitted to return to their farms and work the soil, for preparation has to be made for this spring's crops, a matter which may be of very considerable importance to the whole of Shanghai. There will undoubtedly be many who will severely criticize these men for the action which they are taking, but it has to be remembered, that service to their fellows in such a juncture as this is wholly commendable, and may be taken to prove the existence of just as real a patriotism as that which would prolong suffering by refusal to ce-operate with the Power that is at present master in this area. Tt is well that this should be borne in mind, for anything which may serve to obviate the misery with which thousands of Chinese are still threatened locally is heartily to be welcomed.
Text read from the printed page and cleaned; old type leaves the occasional error.