CHINESE REVERSE

Gisborne Herald, Volume LXVI, Issue 20129, 26 December 1939, Page 6

CHINESE REVERSE

SUPPLY LINES CUT INDO-CHINA REACHED COUNTER ATTACK DENIED U.S.A. TRADE WEAPON ACTION BY JAPAN (Klee. Tel. Copyright—United Press Assn.) (Reed. Dec. 26. 11.30 a.m.) NEW YORK, Dec. 24. The Shanghai correspondent of the Associated Press of America says that tlie Japanese army claims that troops invading Kwangsi province reached the border of Indo-China and cut the Chinese supply lines. Tlie Japanese commander shook hands with the commander of the French garrison at Langson. The seizure of huge quantities of military supplies tit Nankwan and Lungchow. which were occupied for 48 hours and then abandoned, is claimed by the Japanese.

The Shanghai correspondent of tlie New York Times supports the foregoing, and believes that the- Japanese charges that the Chinese claims of victorious counter-attacks are mendacious are born out by the most reliable foreign witnesses.

Instead of the Japanese at Nanning being endangered, French officials in Indo-China confirm the New York Times report and also those of the Associated Press of America that the Chinese claims that they are successfully attacking Nanchang were exploded to-day when two foreign newspapermen Hew over the city and the neighbourhood and discovered no signs of military activity. Similarly they flew over south-west Wuchang, where the Chinese are claiming victories, and found all quiet and peasants farming. Blank Denial Given , It is reported from Shanghai that the Japanese army spokesman issued a blank denial to all Chinese claims to advances and victories, and declared that the Chinese loss at Nanning was so heavy that a winter offensive has been abandoned. It was untrue that Nanning was surrounded, and communications with the coast'had not been severed. Japanese forces were not endangered.

The Shanghai correspondent of the New-' York Times says that the American and other third Power interests in China are vastly relieved that the Washington advices failed fully to confirm the optimistic Japanese statements indicating that the United States was waiving all objections to “a “new order in East Asia.”

The potency of America’s trade weapon against Japan is evidenced by the fact that the re-opening of Yangtse is promised, despite the opposition of the most radical wing, the army. It is realised that General Abe’s Cabinet took its life in its hands in making this promise only after saner militarists, the majority of the navy, industrialists and financiers had analysed the situation and seen how a severance of trade between America and Japan would paralyse the national economy and military efforts.