ATTACK ON SHANGHAI

New Zealand Times, Volume LIII, Issue 12643, 31 December 1926, Page 5

ATTACK ON SHANGHAI

CANTONESE TROOPSCLOSE UP DEFENDING FORCES FADING AWAY PROPAGANDISTS active By Telegraph.—Press Assn. —Copyright. Australian end N.Z. Cable Association, SHANGHAI, December ,29..,,, ' Refugees are pouring- into Shanghai from Hangchow, the capital of Chekiang province, distant from Shanghai 100 miles, indicating that the Cantonese bid for the possession of Shanghai is- imminent. During the past fortnight the Cantonese have been busy with propaganda amoqg the Chekiang soldiery, and have suoceided in causing the latter to declare their independence of Sun Chuan-fang, Governor of Shanghai, who is thus stripped of a considerable portion of his army. The remainder, numbering 20,000, is suspected of disloyalty. FIGHTING REPORTED Telegraph communication _ between Shanghai and Hangchow is interrupted, . but fighting is reported between Sun’s forces and the Chekiangites, who _,re virtually Red. The Shantung army, at present stationed at Nanking, the Yangtse railway terminus, was expected to rußh to Shanghai to prevent the entry of the Cantonese, but is not expected to more, according to private information stating that one of Sun’s subordinates, stationed midway on the railway ajid commanding a sizeable force, threatens to prevent the advance of the Shautungese. His action is the result of a long-standing grudge, the outcome of a former interprovincial war. FEAR OF LOOTING Shanghai’s chief concern now is the probable disorders and lootings at tho hands of Sun’s undisciplined troops retreating from the Cantonese. Much anxiety is felt by merchants, phopkeepers, and outside settlements. H.M.S. Enterprise, from the Mediterranean, .is due at Shanghai on S’atursoreign vessels in the Yangtse gorges are again subjected to attacks from the banks, which are occupied by leaderless troops. Up-river serviqps are suspended. BRITISH POLICY ACCEPTABLE TO AMERICA JAPAN CRITICAL. Australian, aod N.Z. Cable Association. LONDON, December 29. Although the Government has not vet received official replies in regard to the British memorandum to China, it is seijii-offiaially stated that the memorandum is acceptable to Italy, Belgium, and the United States, while France maintains an attitude of reserve, and Japan is inclined to be critical. ~ , , All the Chinese parties, though not enthusiastic, are likely to accept the memorandum, particularly the , pro. nosals' relating to the immediate imposition of the Washington surtaxes.