the preliminary Communist delegate flor the planned discussions, has not yet left Yenan. There
are reports of fighting between Central Government and Communist troops in Northwest Honan.
Communists are accused of massing troops in North Shensi in preparation for the opening of a
corridor to Outer Mongolia. Further reports allege that this has been agreed to by the Japanese in
return for a Communist agreement to relinquish Central Hopeh. There is a flood of rumors of
Russian plans transporting "large quantities of munitions" to Yenan.
 
                5. The press correspondents trip to Yenan is being delayed - allegedly because off the
impossibity of the awaiting Lin's arrival in order to complete arrangements. The excuse is
obviously f1imsy and the whole question was the subject a very stormy press conference last
Thursday. Meanwhile the Ministry of Information is making efforts to have "safe" personnel
included and it appears that censorship arrangements will be unsatis‚actory.
 
              6. It is reported that a "National Administrative
Conference" will be held at Chungking about May 5. All pro-
vincial chairmen and commissioners will be required to attend,
Following this conference, about May 12, there will be a
plenary session (the 12th) off the Kuomintang Central Executive
Committee. Main points of the agenda are : price control;
the budget (the planned) budget flor the current year will be exhausted about July at the present
rate off expenditure); the Communist problem; and preparation for Constitutional Government.
Following the CEC meeting the Peoples Political Council will be convened.
 
                7. Chinese are getting frightened regarding a Japanese drive in Honan. Government
offffices are reported to have evacuated Lovang and today a banking acquaintrance asked whether
it was true that Loyang had already been captured by the Japanese. There are also reports that
Fowyan, Anhwei, has been taken by the Japanese. This is the city to which General TANG En-po.
was recently ordered to move his headquarters.
 
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