A better outlook for southwestern transportation is the completion of a new highway from Tungteng (Dong-tang) on. the Kwangsi-Indo-China frontier' to Kweiyang without touch ing Lungchow, which is threatened by the Japanese army. The new high= way goes via a northwestern route to Kweiyang, the provincial capital of Kweichow, which is connected by highway with Chungking and Kunming.
Goods are leaving Hongkong by steamship for Haiphong, thence by railway to Tungleng en route to Kwangsi, Yunnan, Kweichow and Szechuen. As far as. transportation, to these provinces ts concerned, the Japanese capture of Nanning does not affect Chinese communication, Kwel-yang ts also connected by highway to Kweilin, provincial capital of Kwang~ si, which Is linked by 9 brand new railway with the Canton-Hankow Railway at Hengyang, south Hunan, This route ts a ttle bit longer, Despite the loss of Canton and Nanning, Hongkong still retains its place the entrepot of goods, Thi to the excellent port facilities. AMI leading transportation - company privately or officially organized have retained their head otices or branches ere, Chungking Prepared for
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