China's hard-pressed Premier, Generalissimo Chiang Kaishek, had more of his usual bad news last week. Japanese money and arms had induced Mongolian Prince Teh to proclaim an "independent" state in Inner Mongolia bordering the Chinese Great Wall. To the north Mongolian soldiers and Japanese planes forced the surrender of the Mongol city of Changpeh in Chahar Province, laid the groundwork for another independent State bordering the "Autonomous Government of North China" hatched last November by the Japanese Army (TIME. Dec. 2). As Japan chipped away at Generalissimo Chiang's China (see map)...
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