Peiping, May 25. COMPLETE Chinese Government system, working on orthodox provincial lines and in daily touch with Hankow, is funetioning smoothly inside the Japanese lines over half Hopei province, a large section of Shansi and a part of Charhar.
'A British traveller, just returned from a visit to the area between the Pinghan and Tsinpu railways, describes the organization of Government as being directed from Shansi, Its Jeaders are leaders of the Ked Army operating in North China and officials of the 'regime in existence before the hostilities broke out, The mechanism of the" pre-hostili~ ties form of provinelil government) has been taken over, the only difference being that a mild form of com= munism is taught to children and U.S. Group Minimizes Japanese Victory Magistrates are tinctioning in the} area, lesser courts are, working, and cultivation is going on normally, the traveller states.
Dally contact is kept up by radio with Hankow and throughout the brea there ig a passable telephone system now working, sometimes to) within ive miles of the Japanese' wurrisons along the railways, 'A. post office functions and prints its own stamps, bearing the Kuomintang White Sun device.
Text read from the printed page and cleaned; old type leaves the occasional error.