CAPTURE OF MUKDEN

Grey River Argus, 2 November 1948, Page 5

CAPTURE OF MUKDEN

Chinese Nationalists Regime May Now Coilapse

SHANGHAI, October 30. Unofficial reports said the Communists have broken into Mukden, the biggest city of Manchuria, and that the last Government officials fled this afternoon, leaving the city in anarchic confusion. Chinese Government reports describe the city as one vast battleground and reiterated that Marshal Chiang Kai-shek’s forces were going to fight to a finish. A Chinese official communique stated: Chinese Government forces are still offering" strong resistance against Communist attacks on Mukden. These attacks are still concentrated north-east of the city and the main forces of both sides are engaged. A dispatch by the ‘‘New York Times” correspondent at Peiking, says the loss of all Manchuria became a recognised fact late yesterday, as Marshal Chiang Kai-shek returned unexpectedly from North China. KAI-SHEK'S ANXIETY

A high Government official in Nanking said that Marshal Chiang Kaishek told top Government leaders that the fate of his regime would be decided “in the next three months.” Marshal Chiang is reported to have summoned the Premier, Mr. Wong, the Defence Minister, General Ho Yen-Chin and the former Premier, General Chang Chun, to an emergency meeting at which he made a statement.

“The spread of Communism in China may lead to a new world war,” Marshal iChiang Kai-shek said today. He voiced concern over the Communist advance in Manchuria, and said: “Should the Communists rule the nine north-eastern provinces, it would mean the virtual beginning of another world catastrophe. Obviously, without an integral north-east, there will be no independent Korea oi’ North-east Asia.”

“Marshal Chiang Kai-shek’s position—militarily, economically and ■psychologically—has deteriorated to a point where diplomatic missions are informing; their home capitals of the possibility of a Nationalist collapse within the next few months.” CHINESE C’s-IN-C, GO NORTH (Rec. 10.10') SHANGHAI. Nov. 1 Prior to the news of Mukden’s surrender. General Wei Li Huang, the Government. Commander-in-Chief: and General Tu Yu Miner. Denuty Commander-in-Chief. accompanied by other high-ranking officers and officials left for north China by a special plane.

PRICE FIXATION MODIFIED

The Chinese Government, in a reversal of its economic policies adopted two months ago, to-day abolished price ceilings and decreed that the prices of essential commodities will be adjusted according to the actual cost. ’ The new ruling is intended to relieve the acute shortage of commodities which has brought normal business practically to a standstill.