BIGGER WAR

Grey River Argus, 19 November 1946, Page 5

BIGGER WAR

LIKELY IN CHINA Government v. Communists NANKING, November 17. Fears of a full-scale civil war caused prices to rocket in Nanking and Shanghai to-day, as householders frantically bought commodities for hoarding. Businessmen, bidding record rates for foreign currency on the “black” bourse, jumped the United States dollar to the record high level of 4650 Chinese dollars' at Nanking and 5000 dollars at Shanghai, representing a 50 per cent, increase on last week’s quotations. At Yenan, headquarters of the Chinese Communists, the leaders said the Nationalists were marshalling 100,000 troops for an assault on Yenan. They began evacuating women and children and hospital groups to rear areas. Communist leaders reiterated a belief that Marshal Chiang’s “cease fire” order and his delay in opening l the National Assembly were a ruse to accuse the Communists of non-co-opefation, thus providing an excuse for smashing Yenan. The Communists expect that 60,000 Nationalist troops will strike from the south and 40,000 from the north and west.

The Yenan .radio declared that Nationalist forces, despite Marshal Chiang Kai-Shek’s “cease fire” order, are continuing to attack along the Tientsin-Pukow railway.

Government sources reported that the Communists in Manchuria, attacking along the Mukden-Chang-chun railway, are now assaulting Tsaichechan. They have captured Shiehtsopao, encircled Kuckistian, and also cut the Antung-Mukden railway in southern Manchuria. The Information Minister, Peng Suehpet, said the Government was unaware that the Russians had evacuated Dairen and handed over the port to the Communists. Communist headquarters at Yenan said that even if the evacuation report. were true the Communists would not take over control because of foreign complications. The Associated Press Athens correspondent says that the Greek Security Committee formally announced ifhas' banished to an island near Peloponesus General Stephanos Serafis, Commander-in-Chief of the E.L.A.S. forces during the war, on the grounds that he menaced Greek security.