Chungking, Aug. 12. CHINESE military circles here positively state that the war situation in Hupeh as well as Hunan has definitely turned in China's favour following a new Chinese counter offensive.
In Hunan. the Chinese forces are reported to have penetrated as far as the suburbs of Yochow, which is the Japanese base of operations. Very severe fighting is said to be in progress around the cit One Chinese, column is attempting to circumvent the city in order to isolate the Japanese forces within Yochow. The latter, however, will always have the water communication left open.
Chinese military circles in Chungking deny the Japanese claim of Tapnnese nuecesiey In this ares, adds ing''that they were' unfounded.
Questioned by Transocean, military
heao. guerillas had approached "the rein here even sered lat Coe 'Woehang-Changsha highway: and. Hed also destroyed several sections of rally' line at Hosingehlag. and Tu "northern Hupeh the Chinese claim to have recaptured all positions fast by them during the lst fen days atter the Japanese offensive started in this area, the Chinese. troops are said to be. within sight of: Sulhsien, which is the japanese main base 'The Chinese high command appears to be firmly' convinced that for the time being the. Japanese forces on all fronts will be unable to. make riy progress until they receive fresh
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