With the Chinese forces on the north bank of the Vu river closing in on Nanning elly itself and also the Chinese columns in the west cutting off communications between Nanning and French Indo-China and other Chinese. units threatening the high= way between Nanning and the sea coast, Chinese feld despatches claim that Japanese forces at Nanning are withdrawing southward towards the sea coast via Pakhoi and Yamchow {or fear of being completely trapped by the Chinese columns.
Chinese circles are jubilant over the imminent fall of Nanning, since this will be the frst major city reeaptured by the Chinese in three years of Sino-apanese hostilities. Tt naturally, increases Chinese moral and confidence in the growth of the Mghting strength of the Chinese forces. 'At the same time it is thought that the Chinese victory In south Kwangsi will create 9 favourable impression abroad, particularly, in the United States "and Great' Britain where reater confidence will be felt in the Chinese ability to hold out against the Japanese. hence, greater assistance Wil be forthcoming from the United Slates and Great Britain, The opinion Is also expressed here that the Chinese occupation of Nanning will ensure the safety of the Burma Road, as well as Kunming, which will be secure from Japanese attacks with Chinese forces now com pletely controlling the situation "on the eastern flank which is considered military experts as the only vulnerable flank of Yunnan—Reuter.
Text read from the printed page and cleaned; old type leaves the occasional error.