4 NOVEMBER 1938, Page 1

After Hankow The fall of Hankow and Canton seems likely

to prove less disastrous for China than might have been expected. The Chinese, after their long and successful resistance, have at length withdrawn from Teian, on the Kiukiang-Hangchow railway ; but their retreat was effected in gocd order and only after heavy losses. had been inflicted on the enemy. Japan's invasion of South China has extended to Foochow, the. treaty port and capital of Fukhien ; but her next important objective in the war is reported to be the capture of Sian, capital of Shensi, as a means to cutting off Chiang Kai-shek from the U.S.S.R. and from his Communist allies in North China. But in Tokyo it is accepted that the period of reorgani- sation and consolidation which has now arrived will impose still heavier burdens on the Japanese people and demand an even higher degree of self-sacrifice. An attempt will be made to form an all-inclusive political party, on the totalitarian model, under the somewhat unwilling leadership of Prince Konoe, and further regimentation of industry and labour is called for ; it is recognised that since the Chinese armies remain in the field, Japan's principal war aim has still to be achieved. In Chungking Marshal Chiang Kai-shek has received a vote of confidence from the National Political Council and issued a proclamation declaring that China is still capable of prolonged resistance, that her supplies and communications are assured, and that Japan's advance into the interior will impose on her a passive attitude to which China will reply with increasingly aggressive tactics.