Foreign News: New Bet South

There was more evidence than newspaper talk and statesmen's declarations last week that Japan was taking some of its military blue chips out of China and staking them against the game farther south. Shanghai reported that Japan was already withdrawing troops from inner China toward the seacoast. Shanghai prophets predicted that Japan would concentrate its forces in North China and along a southward line following the rail way from Nanking to Shanghai, Hangchow and Canton — thus controlling China's great seaport sources of trade and revenue.

Such a policy would allow Japan to pull...

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