Despite numerous reports of fighting West Shansi, West Hupeh and JSouthern Kwangtung, generally speak ing there has been no military de-]velopment of any great importance in recent weeks, these circles declare, According to information obtained from reliable Chinese sources, the JJapancse are quidly withdrawing a Jaumber of troops from the Yangtze Volley. They are said to be wil Jdrawing their troops from Banke Kiukiang, Shanghai, Hangchow and lather points. Japanese troops, it i stated, are also being withdrawn from South China, Chinese quarters see no Iikelihood of a fresh Japanese offensive, either in Hunan, Hupeh or Kiangsi provinces, jor in South China towards Kwangs!, The present movements of the Japanese troops in China, Chinese feireles go on to state, tend to indicate {that the Japanese may attempt to seize Chengchow, junction of the Peiping-Hankow and Lunghai railways, with the intention of pushing westwards along the Lunghai Railway towards 'Tungkwan, strategic pass on the Yel~ low River' bend, from which, it is surmised, the Japanese may aveinps fo wade Shensi, pushing' towards Political Moves Forecast national reconstruction, she must turn. to London and Washington.
"the Chinese Communist Party, Reuter was informed, "cannot approach anywhere near to the Kuo mintang as regards position and power."—Reuter.
Text read from the printed page and cleaned; old type leaves the occasional error.