TABLES TURNED

New Zealand Herald, Volume LXXV, Issue 23000, 30 March 1938, Page 13

TABLES TURNED

CHINESE ATTACKS INVADERS DRIVEN BACK ARMIES STILL SEPARATED A- SERIES OF DEFEATS By Telegraph—Press Association —Copyright (Received March '2O, 5.5 p.m.) LONDON. March 28 Chinese headquarters at Hankow claim sweeping victories on all fronts in the northern Pukow railway sector. The Japanese losses in Tuaochwang a,lone, they say, exceed 1000 men. Five tanks, two field guns and 40 machine-guns were captured. Hankow messages give the credit for the Chinese successes to Marshal Chiang Kai-shek, who returned by air from various fronts, where he directed the counter-offensives. The Japanese admit that the Chinese have crossed the Yellow ltiver in North Honan.

The Japanese defeats are the outcome of vain efforts of the forces in North and Central China to unite along the railway. They are still 100 miies apart with the crack forces of General Lit Sung-jen between them. The invaders the first time since the outbreak of the war are fighting desperately, aware that the campaign may depend on the struggle for Hsuchow, which is 400 miles distant from their bases at Tientsin and Tsing-tao. Heavily Outnumbered About 250,000 Japanese on the Hsuchow front are facing 500,000 Chinese, who for the first time are more than holding their own in a fair fight. Hankow is celebrating the Chinese victories claimed in the commander-in-chief's bulletin, announcing that the Chinese forces engaged in the offensive, opened on March 26, recaptured Lincheng and Tsing, and are at present encircling Tenghsien. They routed' the Japanese, who are retreating eastward, but a number are isolated in the neighbourhood of Lincheng owing to the Chinese tearing up the Tientsin-Pukow railway at 30 points. The Chinese also claim the recapture of Tawenkou, cutting off the communications of the Japanese advancing toward Hsuchow. Shantung Offensive The Chinese have begun an offensive south-east of Shantung, causing the Japanese to withdraw to Chahsien. The Chinese Commander-in-Chief on the Tientsin-Pukow railway sector telephoned to Marshal Chiang Kai-shek that the Chinese had completely routed the Japanese and their reinforced troops, and were at present advancing along the whole railway front. The foreign banks are discarding the gentlemen's agreement with the Finance Minister in the Hankow Government to maintain the Chinese dollar exchange at 14d and have lowered the sterling rate to Is, says a message from Shanghai, Outside brokers quoted IOJd. The collapse is attributed to the failure of the Hankow Government's system of exchange control leading to a shortage of allotments of foreign exchange required by Shanghai bankers and traders.

CLAIMS REJECTED JAPANESE SPOKESMAN "STRATEGIC RETIREMENTS" (Received March 29, 5.5 p.m.) Times Cable LONDON. March 28 The Japanese Army spokesman largely rejects the Chinese claims, says the Shanghai correspondent of the Times. He states that the villages which the Chinese entered were strategically abandoned. However, the invaders have undoubtedly lost the initiative. The Japanese claim to hare inflicted terrific slaughter upon the Chinese in the Shantung and Shansi Provinces, says the Pekirg correspondent of the Times. General Li l'ing, vice-comman-der of the partisan army of the Central Government, is reported to have surrendered Linhsien.

NEW GOVERNMENT JAPAN AS SPONSOR INAUGURATION AT NANKING NANKING, March 28 The new regime in Nanking, sponsored by the Japanese, was inaugurated to-day with solemn ceremonial. The spokesman declared that foreign Powers' treaties with the former Nan-* king Government will not be recognised, but the rights and interests of China and foreign Powers will be respected according to international law, custom and precedent. Virtually only Japanese officials attended, Chinese inhabitants remaining indoors.