China : the Second Year of War The war in
Spain has entered its third year ; on Thursday of last week Japan celebrated, soberly and with some fore- bodings, the beginning of the second year of her war with China. The war is estimated to have cost Japan in its first year £430,000,000 ; but the economic strain is only beginning to be severe, as Japan will soon have to pay not only for military operations but for organising peace, where possible, in the areas under her control. Despite extravagant Japanese claims, the military position is not favourable. The Northern Army has been immobilised by the floods for all major operations ; it is now known that for some time Japan's road and rail communications in Shansi have been cut and her garrisons fed by aeroplane. A vigorous offensive has driven a large part of the Chinese irregulars into Shensi and Honan, and several divisions are said to be threatened with extermination on the banks of the Yellow River. But they have been exterminated several times already and have always returned. On the Yangtze the Chinese claim to have checked Japan's advance on Hankow seven miles from Kiukiang ; the Japanese have issued warnings of intensive bo:nbings of seven cities in Central China as part of their campaign against Hankow. The Chinese, while attempting to hold the advance, have ordered their troops dispersed over China to a general attack on Japan's exposed com- munications. * * *
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