THE WAR IN CHINA

Otago Daily Times, Issue 23796, 1 May 1939, Page 9

THE WAR IN CHINA

BOTH SIDES CLAIM SUCCESi POSITION ON CANTON FRONT JAPANESE REINFORCED (United Press Association) CHUNGKING, Apl. 28. The Chinese claim complete occupation of Kaoan, but the Japanes« assert that they prevented a Chinese attempt to recapture Kaifeng, driving them off 28 miles. The Japanese also declare that 10,000 Chinese were dispersed at Changyingtsi.

A message from Hongkong state* that the Japanese, aided by reinforcements, resumed the initiative around Canton, and are threatening adjacent districts. NORTH CHINA FINANCE A CRISIS PROBABLE PEKING, Apl. 28. A serious financial crisis is impending in North China owing to the steady decline in the Federal Reserve Bank notes, which are quoted at over 31 ner cent, discount. Apparently the local Japanese are buying national currency heavily. Retail prices are rising sharply. FIGHTING NEAR KONGMOON HEAVY CHINESE LOSSES LONDON, Apl. 30. (Received Apl. 30, at 11 p.m.) The Japanese claimed to have killed 2000 Chinese of the 155th Division west of Kongmoon, losing 12 killed and 39 wounded. A Japanese flying unit claims that it shot down 11 of 20 Chinese planes in air raids on Nanchung.