According. io, Mr. Tao, realizing that it is impossible to conquer China, japanese m have decided to have a rest so as to develop occupied areas. Manehouküo and Inner Mongolia have been marked out as "national defence, economic, military and political special areas" North China is an "economic special area" and so is the Lower Yangtze area and south China and islands nea" it. The Japanese want to; establish peace and order in these, areas so as to enable them io withdraw as many troops as possible from places which are not strategic in respect to future southward or northward moves, it is explained.
Although Japan's war designs on China are secret, Mr. Tao- says, it is already known that Japan wants ports along the Yangtze, at least from hankow: eastward. In the lower Yangtze area, Japan emphasizes the triangular region embracing Nanking, Hangchow. and, Shanghai. They hope that Mr. Wang's army will take over other occupied districts with headquarters at Nanking. Mr. Tao names many Japanese military advisers to the new regime in both north and south China
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