Shanghai May Be Passed By Communists

Wanganui Chronicle, 30 April 1949, Page 5

Shanghai May Be Passed By Communists

SHANGHAI. April 29 (Recd. 11.30 pm).—Communist forces were officially reported today to have entered Wushing, about 45 milet due north of Hangchow, a central pivot of the new Nationalist defence line in the Chekiang province.

Military observers said the Communists’ main attack was developing against a new Nationalist defence line stretching from Ningpo, through Hangchow, to Nanchang and that Shanghai appeared to be temporarily by-passed. Communist troops are reported to be continuing to push southward and attempting to attack Wukang, about 25 miles north of Hangchow. Nationalist forces said they had taken up a position north of Wukang ready to join battle with the Reds if they launch an attack. Communist troops who captured Soochow and pushed east in the direction of Shanghai, were reported today to have reached the vicinity of Kunshan, 35 miles from Shanghai. It is reported they are covering the Communist bulk forces pushing southward along the Soochow-Kashing rail way.—Reuter. SHANGHAI, April 29 (Rec. 12.43 a.m.)—Shanghai’s chances of surviving Saturday’s pay day without blowing up from internal economic pressure is being surveyed today by British and American firms employing Chinese, says the United Press correspondent. There is simply not enough paper stocks to print the necessary amount of gold yuan notes which today were quoted at 1,700,000 to one silver dollar, while the supply of silver money has been diverted to the army payroll to prevent discontent there. Some concerns are attempting to head off rioting by distributing their own products to employees as a salary advance.

The situation is so fantastic that gold yuan notes are lying in the streets with beggars trampling on them. Failure to meet payrolls is recognised by the employers as playing directly into Communist hands, as the underground is busily trying to create internal strife