Chungking felt better. A month ago, with beaten Chinese armies everywhere in retreat, the atmosphere had been black with gloom. Now the Americans were back on Luzon. In three months' time, predicted the Army newspaper, Sao Tang Pao, U.S. armies would storm China's coasts looking for the Jap. But no U.S. source backed up this optimistic prediction.
The Chinese still controlled most of the coast south from Hangchow Bay. Last fortnight they enlarged their holdings when Chinese troops recaptured the coastal cities of Yamhsien and Limchow, taken by the Japanese last November. Another force reoccupied Siapu on the Fukien coast.
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