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CHINESE TROOPS RECAPTURE PÈiTASHAN

NANKING, Friday. ,

Government, forcés, fighting the ' Outer Mongolian invasion of Sinkiang Province, have re- captured Peitashan, 50 miles from the Outer Mongolian'bor

der.'

Reporting this, the Government's .Central Newsagency says'that fight: ing is continuing.

Other dispatches report that ' the invaders have been repulsed 50 miles inside the Mongolian border but air- craft, with Soviet markings,' con- tinue ' to bomb Chinese positions at Peitashan. " -

China's Legislative Yuan yester- day demanded a firmer policy to- wards Russia as a result of the Mongolian invasion.

Some sources view the Mongolian invasion as a manifestation that China is in danger of losing Sinkiang Province under Soviet-stimulated de- mands for its autonomy.

Stalemate in China

NEW-YORK, Friday.

Government and Communist troops' in China have1 battled each'other in-1 to a'temporary stalemate on the Central Shantung front, 100 miles! north of Hsuchow. ' 1

The "New York Times" corres-

pondent in Hsuchow (Tillman Dur-| din) .says that the Nationalist of-j fensive, aimed at clearing the Com- munists from the huge slab of ' ter- ritory east of the Hsuchow-Tsinan ! railway and south of the Asinan iTsingtao railway, has halted short of

its objective.

\ According to Durdin, the Com- munist destruction of the crack Government 74th Division and the capture of much of its American equipment, east of Mengyin last month, is one .of the big reasons for|

the cessation of the Government

drive. , |

The long vista of a continued struggle is affecting Nationalist troops' morale and the tendency to surrender is becoming increasingly, noticeable, he adds. I

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