Whether or Not to Plunge Southward Chungking, June 4.
There will be no important change in the Sino-Japanese situation probably until autumn, according to Chinese well-informed circles here in a review of the China war.
Japan. meanwhile, is said to be in a dilemma and unable to decide when ther to plunge into a southward expansion, and thereby risk a major [war against the United States and Britain, or to make a desperate drive against Chungking, thereby risking deeper commitments in China.
Following the conclusion of the tripartite pact and the Soviei-Japanese neutrality pact, there has been much talk of imminent southward expansion by Japan. Such belief, the same circles point ouf, is supported by the following reasons:
Firstly, if Japan's policy is based on the idea of an Axis victory, Japan must seize the strategic and rich South Seas countries before the conclusion of the European War. otherwise she will have a weak claim on these possessions, the best of which
Text read from the printed page and cleaned; old type leaves the occasional error.