The newspaper "Nichi-Nichi" this! morning gave prominence to Shang-hal despatches forecasting an_ imi nent reorganization in the Chungking regime. in which the Soviet in-nonce will be swept out and re~ placed by a total political and econo Inle dependence on the United States.
'The reports add that this, fundamental. reorientation. of Chungking' policy will take place' upon-the re~ turn of Mr. 'T. V: Soong, brother of Madame Chiang Kel-shek and: Chair~ man of the Bank of. China, who visited Washington recently. Mfr. Soong is said to be "secretly" en route to China.
'This change of policy,. according to the "Nichi-Nichi" will' be the: out come of the recent visit to Chungking of Dr. Lauehlin Currie, President Roosevelt's administrative advicer, and staff, This reorientation will be imple: mented through, firstly. a loan 'GS$100,000,000 for the stabilization of the Chungiang currency: second. vast United States loans secured against railways, highways, vital industries, and hydroelectric projects in China which will be supervised by 80 American technicians from the United States. and third, a loan to the Chungking government of heavy Bombers, fighters as well as heavy artillery under the Democracies bill enacted on March 11. Moreover, Chungking will agree to loan alt bases to America in the event of an outbreak of the Japanese-American war; while, a special corporation will be formed to monopolize exports America of gold. copper, tungsten and
slated, tang el" the "Nichi-Wiehi* reports The despatches went on (0 say that] the Chungking and Washington poli-les found a meeting point when the former discovered itself getting deeper into difficulties over the Chinese Communist problem, while the United States became Increasingly nervous over the alleged Japanese plans to expand forcibly southward.
Tu the meantime, another Shanghai despatch to the "Nichi-Nichi" stated that Chungking has begun a selection of a commander-in-chief for a Chinese " Expeditionary Force to Malay under whom 1.000,000 Chinese men will be sent to Singapore where they will be armed by British with arms obtained from the United States.
The report stated that General Pal Kwangsi warlord; General Chang Fa-kwel, who once led the "ironside" division; and Gen. Huang Chi-huang, Cantonese warlord who partook inthe abortive Fukien re~ beltian of 1933. are being mooted for the post.
Plans" for an Anglo-American-Chungking citiance is expected to make rapid progress as soon as Dr. Currie returns to Washington, the "Nichi-Nich:" report added.
"The despatch also revealed that investigalors hinted that Secretary of Stale Cordell Hull may be sent to Chungking to conclude the pact—
Text read from the printed page and cleaned; old type leaves the occasional error.