MANCHURIA

Hokitika Guardian, 20 January 1932, Page 5

MANCHURIA

JAPANESE FORCES. (United Press Association. —By Electric Telegraph.—Copyright.; 'Received this day at 9.25 a.m) SHANGHAI, January 19. White Japanese forces are occupying Manchuria, marking time temporarily, consolidating their positions, an ( | hatfling against sporadic bandit attacks. (I'lva serious clashes resulted with heavy casualties to the Japanese, who were ambushed by Chinese irregulars in the vicinity of Chinshi. The Japanese garrison in the walled city of ChwangChen are now precariously situated, and aiWdesperately fighting two thousand bandits. , ‘K CHINESE DIFFICULTIES. A COUNTRY NEAR BANKRUPT. SHANGHAI, January 17. A struggle for Harbin between rival Chinese irregular armies is imminent. After several momentous comertlnces between Chinese bankers and the leaders of the Nanking Government, regarding the near bankruptcy of thencountry it is possible that if there were a moratorium for domestic loans, the difficulties would be temporarily overcome with the announcement that the bankers are prepared to lend ten million dollars monthly, providing hankers* representatives are permitted to participate in the distribution of the amount. The Government, however, are still unable to function properly, owing to the continued absence of Chiang Kai Shek, AVang Ching Wei and Hukamin, 'despite frantic efforts to persuade them to return to the capital, A decision regarding the proposed severance of diplomatic relations with Japan is awaiting the sanction of the absent leaders. Thus Manchuria is subordinated to the present financial crisis.