Neutral observers here pointed out the possibility that the report had been circulated to emphasize Mr. Wang's "guilt" in opposing the set policy of the National Government regarding peace discussions with Japan. Some quarters doubted that dissatisfaction in Yunnan was serious enough to have invited revolt overtures from a man of Mr. Wang's experience. It also was pointed out that Mr. Wang's connections in Chinese military circles, including Yunnan, were not strong.
Mr. Wang was expelled from the Kuomintang and all Government posts last night because of his statement on peace discussions released in Hongkong last week. Mr. Wang advised Generalissimo Chiang to accept Japan's three, terms of peace as a basis for discussion if Japan agreed to withdraw all her troops from Chinese territory.—United Press.
Canton, Chinese circles consider that Chinas position today is very strong, in fact. stronger than at any previous period during the Sino-Japanese hostilities.
This they ascribe to four factors:
Firstly, the Chinese army has been completely reorganized, and redistributed for prolonged resistance; Secondly, China's financial position is much more secure as a result of credits from Britain and America; Thirdly, China's international position is stronger, with "Britain and America becoming sceptical of Japan's assurances to protect Third Party interests in China"
Fourthly, China' is now more united than ever, with the South-west and North-west provinces "solidly behind General Chiang Kai-shek in their determination to resist Japan's attempts 10 penetrate deeper into China's interior. Conditions for resistance are claimed to be favourable.
Text read from the printed page and cleaned; old type leaves the occasional error.