"The China Affair has now entered a new stage as the result of the fall of Canton and Hankow.
"While we will not relax our efforts for the overthrow of the anti-Japanese regime we are obliged at the same time to address ourselves earnestly to the work of construction.
"although the Chiang Kai-shek regime is still professing its policy of the so-called long-term war it has already fled into a remote province and has become a purely local regime while, in the regions under the occupation of our forces, sentiment is growing rapidly against the Comintern and in favour of friendship with Japan.
"The 'Provisional Government' and the 'Reformed Government,' at Peiping and Nanking respectively, and the Autonomous Government of Mongolia are all making healthy progress and steadily winning popular support and confidence.
Moreover, in the fall of last year, a joint commission was formed by the 'Provisional' and 'Reformed' governments; and movements are coming io a head in Hankow and Canton for the establishment of other local governments.
"It is hoped that a new 'Central Government' may be speedily organized and ce-operate with us for the settlement of the present conflict "As for the recent flight from Chungking of certain leaders of the so-called peace faction in the Chiang Kai-shek regime, the Government are watching carefully for consequent cevelopments.—Domei.
Text read from the printed page and cleaned; old type leaves the occasional error.