NORTH CHINA.

Manawatu Standard, Volume LX, Issue 161, 7 June 1940, Page 2

NORTH CHINA.

JAPAN’S FAILURE TO RULE. LONDON. May 14. It is reported that, despite the most violent terrorism and the strictest police measures, the Japanese have failed to achieve effective Government generally in North China. Japanese control does not extend beyond the walls of occupied cities. Even in the most strongly garrisoned areas the Chinese still collect 80 per cent, of the normal land tax, carry on regular work, conduct village schools, organise co-operative societies, elect village councils, and even train troops within a mile of the Japanese garrison.

The situation is explained by the success of guerilla warfare, which has succeeded because of military and civilian co-operation. Previously the Chinese soldiery ill-treated civilians, but at present their relations are very friendly. Chinese villagers form local self-de-fence units and assist the military by tending tho wounded and transporting stores. Truculent units, although of little use against serious attacks, prohibit small parties of Japanese from moving about the country, thereby preventing strict policing. The Japanese apparently realise the ineffectiveness of their present policy. Captured documents included a copy of an address by General Kuwaki to Japanese officers. This emphasised the importance of winning popular co-oper-ation, pointed out the inadvisability of ill-treating Chinese civilians, and advocated the adoption of Communistic methods of approach.

Nevertheless, the majority of the Japanese commanders, disregarding instructions, carry- on indiscriminate man-handlings, and the burning of villages. Peiping is reported to be the best-administered Japaneso controlled area. Elsewhere, the standard of Government officials is very low, many being addicted to the fmoking of opium, or the taking of other drugs. PROPOSAL BY MR WANG. It is stated authoritatively that, although Mr Wang Ching-wei, leader of the new puppet Government in Central China, plans the early establishment of a “Central Bank of China.” It will merely be a gesture. The bank will be under Japanese advisership. It will not issue new currency, and will hold merely a nominal place, awaiting developments. This will relieve financial circles, which feared that the bank hastily would issue quantities . of relatively unsecured currency, despite the fact that China already is staggering under live currencies, all differing in value.