FAR EAST WAR

Greymouth Evening Star, 21 January 1944, Page 5

FAR EAST WAR

JAP. WARSHIPS MINED

NEW YORK, Jauary 20. The Chungking radio announced that two Japanese warships were nit with mines and sank near Tungliu, two hundred miles from the mouth ol the Yangtze River. The enemy suffered considerable losses.

INDO-CHINA

(Recd. Noon) CHUNGKING, Jan. 20. Mitchells operating in Indo-Chma on Tuesday and Wednesday bombed the railway dock area at Port Campua destroying oil storage buildings. Mitchells also attacked Japanese barracks on Monday. All the aircraft returned safely.

INFLATION IN CHINA

NEW YORK, January 19.

Foreign observers are of opinion that China is facing her bleakest year of war against Japan, because inflation has carried prices two hundred times above the 1937 level, says the “New York Times’s” Chungking correspondent. Some manufactured goods have even increased five hun-bred-fold. Industrial production generally is declining. For example, fiftyfive out of 364 factories in the Chungking area have closed down, thirteen have suspended and others are expected to follow before the Spring. This decline is due to shortage ol funds-for long-term investment during the inflationary period, when short-term commercial loans are more profitable. It is also due to the high cost of production and to inequalities in price control measures.

GAINS IN BURMA

RUGBY, January 20

A South-east Asia communique reports the repulsing of Japanese attacks against bridges on the Magyi River, to the south and east of Maungdaw. and at Windwin, four miles from Buthidaung. In the j-lukawang Valley the village of Gumga was taken by General Stilwell’s American-trained Chinese forces, which also crossed the Tanai River and continue to push eastward. United States fighters destroyed two, probably destroyed another two. and damaged others of a force of Japanese bombers and fighters which intercepted over Fort Hetz Valley on Tuesday. American and R.A.F. air activities included successful attacks on Myitkyina airfield, Mandalay, and land and river targets. Heavy damage was caused to enemy warehouses and rolling stock. Five Allied aircraft are missing from all operations.