Some circles feel that the Administration may be forced to go even farther in rearmament to answer the reported plan by Japan to construct two 46,000 ton battle cruisers, which except for H.M.S. Hood would be the world's largest ships of war.
The Naval estimate to be submitted to Congress is expected to total roughly U.S.$576,000,000. and it is understood that an Army of appropriation of more than U-S.$500,- 000.000 has already been approved by the President.
Both appropriations will be subject to approval by Appropriations Committees and by the chambers themselves in the House and Senate successively, Stiff opposition is expected, particularly on the Senate floor, where the neutrality bloc is strongest. Administration legislative leaders, however. believe that the Roosevelt vote bloc, backed by growing national sentiment for a It Is reliably reported that Chinese vianess yesterday afternoon visited Nanking in an attempt to bomb the Kwanghuamen aerodrome, outside the city.
At the same time, more than 60 bombs were dropped at Nanchang, capital of Kiangsi, by 26 Japanese planes, with whom Chinese machines are stated to have engaged in severe aerial combats.—Reuter.
Tsingtao's Fall Inevitable Tokyo, Jan, 3.
Tsingtao's capture by Japanese troops is "only a matter of time" as a consequence of ihe seizure of one half of the Tsingtao-Tsinan Railway, according to information received in Tokyo to-day from army commanders in the field The Japanese cops are driving toward Tsingtao along this line and Were reported to be making rapid progress However tsingtao has lost its former strategic importance since it, is blockaded by the Japanese Navy. it was pointed out, The whereabouts of Admiral Shen Hung-lich and Gen. Hsieh Kang-che, commandant of the garrison, was a topic of speculation since their reported disappearance from Tsingtao on December 30.
Order. is Being maintained by 200 foreign. "vigilantes" ~in ea-operation with leading Chinese citizens who have organized a provisional municipal government i the information reach A peace maintenance commission now is functioning in Tsinan, Shantung capital occupied by Japanese forces last week. The Mohammedan general, Ma Liang, is chairman of the commission, which issued a manifesto denouncing the Chinese National Government and the Kuomintang Party, and pledging ce-operation with the Japanese forces,—Dagnei.
Text read from the printed page and cleaned; old type leaves the occasional error.