NATIONALISTS FALL BACK

Chronicle (Levin), 10 November 1948, Page 5

NATIONALISTS FALL BACK

(N.Z.Pu 1.

— Reuter,

1 Comntunists Converging un Important Centre

Covyrlaht)

Received Wednesday, 11.20 a.m. SHANGHAI, Nov. 9. Powerful Communist columns today converged 011 the Government's main control centre in China, the stronghold of Huschow, from three directions. Reuter's Shanghai correspondent says that the Government's fortified line in Central China is sagging following the fall of Lincheng, .60 miles north of Huschow. As the Nationalist forces fell back on Pengpu, Communist saboteurs intensified the cavities in the rear of the Government. lines. Four major explosions blasted the Pukow-Tientsin railway, disrupting ratl traffic between Huschow and Pengpif Informed Chinese foreign sources believe that Nanking will be in Communist hands before the end of this year. They place little confidence in the ability of the Nationalist armies to hold the Communists at Huschow or Pengpu along 170 miles of the northern railway approach to Nanking. This lack of confidence derives from ! the appraisement. of the morale of the Nationalist troops, which they describe as oeing at the lowest ebb. Starving Mobs Storm Shops The economic crisis in Shanghai is described as one of the worst in the city's history, and it shows no signs of abating. Starving mobs continued to storm rice shops while the price rose 100 per cent in 24 hours. Most stores retailing foodgtuffs closed up early, complaining that it was impossible to' do business owing to the minute by minute devalution of the currency.