Excitement In Nanking And Shanghai

Gisborne Herald, Volume LXXV, Issue 22822, 17 December 1948, Page 5

Excitement In Nanking And Shanghai

(N.Z.P.A.—Reuter—Copyright.) (I I a.m.) NANKING, Dec. 16. Only a miracle can save the Chinese Nationalists, in the opinion of highly-placed foreign sources in Nanking, says William Parrott, the N.Z. Press AssociationReuter correspondent.

It is believed that Nationalist armies, already badly mauled, will continue to lose further men by casualty and defection, in addition to the 1,500,000 troops already lost to the Communists in the Manchurian and North China campaigns.

Nationalist. China is seething with rumours as the civil war drama appears to draw rapidly to a close.

Tientsin’s Last Outlet Cut

Excitement in Nanking is confined mainly to the business and political fields, adds Parrott. The ordinary Chinese people remain strangely apathetic. Their main _ hope is lor peace, their main fear is personal involvement in the fighting. _ Reuter’s correspondent in Tientsin reports that the Nationalist troops have withdrawn from Peitang, eight miles north of Tangku, Tientsin s last outlet to the sea. Refugees today are clogging the highway to _ Tientsin as they flee before the Red tide. Reports from American circles indicate that Peking may surrender to the Communists by negotiation, says the United Press. The defenders of Peking have withdrawn behind the ancient city walls and closed all gates to present Communist infiltration.

Rumours anticipating events which 'may or may not occur are producing a spate of nervous excitement in the key cities of Nanking and Shanghai. Speculations still focusses largely on North China where there is still no clue to the intentions of the Nationalist commander, General Fu Tso-yi.

New developments appear to be tinder way in the battle region north of Nanking but few foreign observers and few Government officials believe the Red tide can be stemmed. Neither, apparently, does the Premier-designate, Dr. Sun Fo, who, nearly three weeks after he accepted nomination from General Chiang Kai-shek, still has not formed a so-called war Cabinet.

Impetus to Peace Rumours

An Associated Press dispatch from Peking says that Communists have pushed close enough to level cannon on this city but they have not done so. This fact alone gives impetus to peace rumours. With guns booming a few miles away, the city is calm. . Reuter’s correspondent in Shanghai states large sums of money are being made and lost as speculators play out the “rumour merry-go-round.’ The black market rate for the American dollar, which hit the peak of 68 gold yuan earlier in the week, today sank to 60 while shares also declined. The United States transport Bayfield today arrived at Shanghai, carrying 695 Marines to protect American nationals. The Marines will live on board and al present land only for shore patrols.