FIGHTING RENEWED AT SHANGHAI

Press, Volume LXXIV, Issue 22306, 21 January 1938, Page 11

FIGHTING RENEWED AT SHANGHAI

Japanese Attack on Chinese Guerrilla Forces % ANXIETY FELT IN INTERNATIONAL SETTLEMENT Russian Troops Said to be Massing on Manchukuo Border Japanese forces at Shanghai are concentrating in an attack on the Chinese guerrilla forces in the Pootung area. This operation is causing renewed anxiety lest it should lead to the occupation of the whole International Settlement. It is reported in Shanghai that Japan is submitting new peace terms providing for the withdrawal of Japanese forces from South and Central China, but retaining Japanese influence in the northern provinces. The Japanese Prime Minister (Prince Konoye) told journalists that Japan would conduct negotiations with the provisional Government established at Peiping, but would no longer deal with the Central Government. It is suggested that this decision to ignore Chiang Kai-shek is more effective than a declaration of war against the Chinese people. Japanese newspapers report that Russia is massing troops and aeroplanes in Outer Mongolia in areas bordering on North China and Manchukuo. It is also alleged that Britain is supplying the Soviet with submarines and heavy artillery.

SHANGHAI MAY BE OCCUPIED

JAPANESE ATTACK IN POOTUNG AREA aRRESTS IN INTERNATIONAL SETTLEMENT OCITITED PRESS ASSOCIATION COPTBIGHT.) (Received January 20, 5.5 p.m.) LONDON, January 19. The Shanghai correspondent of the "Daily Telegraph" says that heavy rain interfered with the Japanese operations and thereforetanks, artillery, and infantry concentrated on opposing the Chinese guerrilla forces in the Pootung area, across the Whangpoo river from the International Settlement. The Japanese move is causing renewed anxiety, as it is feared that it might involve the occupation of the whole of Shanghai. - , Meanwhile in the Settlement, French police in lightning raids arrested 89 Russian and Chinese terrorists and seized quantities of arms and ammunition. The raids are continuing and further ,mass arrests are expected. It is believed that an extensive plot has been forestalled. According to the Shanghai correspondent of "The Times," wireless communications have been partially reopened, operating in the name of the previous administration from the same offices. They have made contact "with Hong Kong, Manila, arid Batavia. It is expected that if they are extended, the Japanese will announce that foreign wireless agreements will be respected. TENSE INCIDENT AT TIENTSIN .■ BRITISH THREAT TO RESIST JAPANESE SHANGHAI, January 19. A tense incident was created in Tientsin when British authorities refused to hand over a Chinese living in the British Concession to the Japanese army. The Japanese threatened to enter the concession, and a British pfneer replied: "We shall be compelled to resist." After this the Japanese modified their attitude. A , 4 A Hong Kong message states that Madame Chiang Kai-shek has confirmed the creation of the Supreme War Council under Marshal Chiang Kai-shek's control to intensify the campaign against the Japanese. It is stated that the Japanese have checked the Chinese advance on Wuhu. The Domei News Agency says that panic has been created in the foreign colony at Tokyo by the decision of 64 of their Chinese cooks to return home with the Chinese Ambassador. The latest Chinese estimate is that 18,000* native refugees have died from disease, exposure, and hunger.