(Continued from page 1) towards Leningrad, The Russians admit that the Germans here are making a determined effort to break through towards Leningrad, and state that a fierce battle is in progress.
The Russian communique. reveals that during an air raid on Bucharest, the arsenal was blown up, In addition. to this success, the communique also speaks of widespread activity by the Russian air force in all sectors of the front—Reuter, "250 Miles from Moscow"
Tokyo, July 3.
"Unable to believe, however, that Russia would withdraw her active support, the Chinese felt that the blow was moral rather than material. The chief moral effect for which observers waited, was the reaction of the peace party, in Chungking. The peace party', small in numbers but never quite dormant. is not a party in the usual sense, It has no avowed leader and no cohesion. The term has come to include those elements inside and outside the Governmnt, many of them. unknown to each other, who are weary of hostilities, Their aim is to go home—back to the great cities of the coast.
"Many who in their hearts favour peace are willing to fight on while the hope of victory remains; it is when things are going badly that they-tend to relapse, Before any voice for peace could be raised in Chungking. much less make itself heard in coun* oils of state, three things happened which promptly changed the outlook; reports were received from Moscow of the Russian intention to continue assistance to China; Britain and the United States announced new currency credits, and suspicion succeeded the transports of delight with which the Japanese press had acclaimed the pact
Text read from the printed page and cleaned; old type leaves the occasional error.