The Waterbury Democrat., 1937-08-27
Chinese Defenders
 Must Quit Shanghai
CContinNed from lsage D

ally in satisfactory condition. To- ward night formal bulletin said that the ambassador was fairly conn fortable and that his general condi- ton was definitely improved. At first hoping that the ambassador might turn the crisis point tonight, the surgeons said they must wait ze hours or moro to judge the eventual outcome.
 Earlier the ambassador was some. what better, and alternately dozed and talked weakly with distinguish cd visitors admitted to his room Admiral Herry E. Yarnell, United states fleet commander, and Jap- anese Ambassador shigeru Kawagoe among others.
 Conquest of Shanghai
 As the foreign community awaited news of his condition, the Japanese army set It's Sunday deadling for the conquest of Shanghai. By then 1t was announced, the high com- rnand expects the army men driy- ing in on the city from the north to effect direct contact with the sellers defending the Hengkew- YangtEepoo North railroad station lines in the north side of the city proper. Juncture of these two forces would mean that all of north and northeast Shanghai, and the coun. try outside, had been cleared of Chinese troops. As the Japanese slashed their way with the bayonet toward the city, approaching the northern suburbs, events moved fast.
 Nanking Bombbarded
 Japanese airplanes mercilessly bomharded Nanking, the National capital, 10 miles up the YangtSe, destroyed part of tho city and killed ct least ib0 civiiians-whose bodies c United Press correspondent count cd. An American Standard oil station was destroyed.
 Here, the American Chamber of Commerce, telegraphing through the United States Chamber of Com. meree at Washington, appealed ur- gently for state department repre- Sentations against Japanese or Chi- nese aiFplanes flying over the fore e!gn area of Shanghai.
 4 Japanese army spokesman saio l the entrance of Chinese soldiers ii1te the great Wing-on cotton mill, over which the American flag flies at Identification of nationality made I
 necessary to bomb the mil. The
 SpokesmaYa explained that the Chin.
 csc were firing trench fiertars from
 the factory.
 This news came just after . pro. test by the United States consulate general to tho Japanese consulate general against Japanese bombingi Of an American hospital, an Amer. lean mission and an American own' , cd dairy.
 Two New Crises Two new crises leomed--the Jap. arese blockade of tho China coast and the threatened retreat on tht foreign area of demoralized Chin csc troops.
 , The Blockade threat, as regards the possibility of Involvement Of thu , United States and other nations was eased for the moment today
 when the Japanese embassy are
 Japanese naval landing party head
 quarters, replying jointly to specific
 United Press questions, said:
 We have no intention of board ing or interfering with foreigr chipping even when 1t b carrying arms. Regarding the shipment ol
 Bellanca airp!anes to China aboare
 the American Steamship Wichita
 Japan ct present has no intentior Of boarding 1t or halting 1t. The only ships boarded or halted will bt those regarding which Japan TnighI be suspicious. For example, since the outbreak of hostiiitieS iiuneroul Chinese ships have transferred k
 foreign registry. h such cases, wher
 the Japanese might not Dc informed of the transfers, officers Of the shir i, would Dc asked to prove tho veSsel'i l ownership"
 Not Yet Prepared Earlier a Japanese embassy spokesman had hoped" that tho United States would not attempt to ship arms or aiFpianes to China and added that Japan was "noI yeU prepared to prevent such ship.
 inents by force.
 But it seemed plainer each daS that as Japanese policy was worked out, foreign shipping would Dc in- volved.
 From Tokyo came news inst the Japanese government expected te make an ofncial statement Monday and the intiination that the state. nient would include foreign shipping : ag included in the blockade. Second threat was that of catas- tfophe to the international settle
 ment from the retreating Chinese
 army.
 Chinese Soldier Threat While Chinese soldiers north oi tho city seemed rctreating west. ward, SO as to keep from being tfap- ped by the Jepanege. those on the south side, on the other side Of the Whanepoo river, were retFeating to-
 ward the settlement.
 Fer the present they were mass. ing in the Nantao section, iiniie- diateIy adjoining the internationel settlement end the French conces- sion oii the southeast, sitter crossing
 the river il sinall boats. T Fear increased that these men
 would tfy to rush the barriers
 guarding the lborder Of settlement able situation. The Dritish govern ltent doubtless viii know how to ob-