Kalgan has replaced Yenan as the center of Communist China. TIME Correspondent William Gray examined Kalgan, cabled:
China's Great Wall, crumbling on dry brown ridges above this dusty city, has never witnessed such doings as it sees these days in Inner Mongolia's ancient commercial capital. Half modernized by the Japanese, Kalgan has become in five months the laboratory of Chinese Communist industry.
From the Japanese and their puppets, the Communists took over properties roughly valued at $15,000,000, as well as some 300 kilometers of the Peiping-Suiyuan Railroad. They have reopened two flour mills, and factories making cigarets, matches, soap, porcelain, lacquer, varnish and...
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