Minister of War, to North China, Shansi, Shantung and Shanghai may be interpreted as a turning point in the conduct of Japanese military operations in China. Utmost secrecy was maintained during his two visits which, in itself, must emphasize the importance of his mission especially in view of the disquieting reports, as far as Japan is concerned, of the spectacular successes scored by the Chinese forces in Shantung, and the annoying persistence of Chinese guerilla activities over a wide area which has kept the Japanese busily engaged even in minor sectors of the long line which they hold. It may generally be stated that for the four months or so the Japanese campaign in China has been at a standstill, and movements have been in the nature of a withdrawal owing to renewed Chinese pressure, which has drastically altered the line in Shantung and struck the Japanese at the most vulnerable point Where Japanese plans obviously were to effect a junction between the armies of General Terauchi and General Hata, with Hsuchowfu as the objective. General Sugiyama is reported to have expressed the opinion that he is well satisfied with Japanese progress in the campaign and has reiterated the statement that there will be no change in military policy which is aimed at reducing General Chiang Kaishek's government to state of complete powerlessness." The interview, in which he is quoted, contains much extraneous matter meant for domestic consumption, but the fact that he has returned home with definite proposals indicates that the degree of satisfaction is e pressed rather than accepted. Prince Konoye once ain in power and is credited with the concession from the military that he w be solely responsible for broad decision: military, political and economic matter: means the military realize he is able to muster popular support which will make a successful continuance of the campaign possible. Therefore. it is predicted that there will be further reinforcements from Japan, and Hankow is once more mentioned as the ultimate objective and a quick decision the ideal because the possibility of a protracted and exhaustive war against a country which daily shows signs of increasing vitality is no longer feasible. One result of General Sugiyama's visit has been a redistribution of troops and the initiation of offensive action in Shantung, where Lingyi has been retaken and a junction of Japanese columns between Lingyi and Yihsien in a drive southwards towards Taierchwang, on Chinese admissions from Hankow. Chinese reports further anticipate action from General Hata's forces who have been in the Pengpu region for months, indicating that Hsuchowfu is the immediate objective, the obvious plan being to clear up the uncertainty in this district by a concerted drive.
Text read from the printed page and cleaned; old type leaves the occasional error.