Hankow, Apr. 12 Extending their advance southward, two Japanese detachments completely occupied an important Chinese military base at Shihchakai, on the west bank of the Kan River about 35 kilometres due south of Nanchang, early on Tuesday morning, according to field reports reaching here today.
Staging a fierce attack on 3,000 Chinese in the Wangchuang-Yer hsiang kai sector west of Nanchang on Monday, the Japanese Sano unit inflicted heavy losses upon the Chi-
"The were taken from the rails Lunghai Railway, east of Chengchow, which were torn up for strategic reasons."
Relations with the Communist Party, General Chiang Ting-wen declared, were good. Questioned about the special district administered by them in North Shensi, he replied: "Naturally, one cannot expect feelings aroused in a ten-year feud to be extinguished at once, but matters at present are satisfactory.
"Our position is this: in the eyes of the Central Government, the so-[called special districts' administered by the Communists have no existence. We permit them, in view of the present circumstances, but we hope to convince the Communists that Communism cannot be applied in China, "We hope they will change their policy, but if they don't, we are not afraid of them," General Chiang Ting-wen concluded.—Reuter.
Text read from the printed page and cleaned; old type leaves the occasional error.