The Waterbury Democrat., 1937-09-03
Chinese ArnyBroke
 Through Japanese
tcontinuetl from Page D

The statement caused e new panic among more than million chinese refugees damned into crowded na. tive quarters around the interna. tional settlement and the French concession. Many of them riskec death to flee Into the interior.
 Shells fell in the Anglo American area of the international settlement and several Europeans were wound ed.
 One anti-aircraft shell landed on the room of the U. s. Marines sec- ond battalian headquarters but il did no damage and there were nc casualties
 Jap Warships Cannonaded
 Twenty Japanese warships in the Whangpoo, including the shell-scar- red flagship Idsuno, were subjected to Chinese cannonade and ma chinegu nstrafing. It was believed many sailors on the ships were killed.
 Tn Nanking Q Chinese government spokesman threatened to bomb cities in Japan proper "in retaliation for Japanese destruction of our cultural organizations and on-comba tants." "
 Chinese military headquarters here said 200 Japanese soldiers were Killed in e single combat on the banks of the Whangpoo in Pootung when they attempted o landing from flatboats this afternon. Near midnight 1t appeared that the great Japanese offensive prom ised by Lieut.. Gen. Iwane Matsui not only had been stopped in its tracks but was being rolled back along ct least l6 miles of the 2S mile front.
 Shells, shrapnel fragments, ma chine gun and rifle bullets rained on the borders of the foreign area and in the Whangpoo River where the United States Cruiser and oth- or American and foreign Warships are anchored. One anti-aircraft shell landed on the roof of second battalion headquarters of the Unit cd States marines. It caused no damage.
 WSEohAPo AH DAHkeT
 It seemed that at any moment a Vagrant shell must crash down on Q foreign Warship or into the heart Of the international settlement,
 At no time during the battle for Shanghai had firing in the city area proper reached such Q peak of fury.
 Something had gone wrong with the JapeneSe offensive, announced almost contemptuously, that was to have annihilated the Chinese army days ago. Today opened the fourth week of the battle, and the Chi- nese opened 1t with Q new flaming challenge to the war machine of Japan.
 In mid-morning, new Chinese batteries of surprising strength sud- denly opened fire on Japanese war ships anchored in the Whangpoo and on the Hongkew section, Japa. nese-controlled, of the interna tional settlement.
 Coincidentally there came the staccato rattle of machine gun and rifle fire-ChineSe soldiers ia plain clothes had infiltrated Into the HongkeW area and were raking Ja- panese areas with deadly fire.
 Plain Clothes Men
 On the Pootung side of the river, close to the United States Cruiser Augusta, c big force of Chinese plain clothes men suddenly ap. peared on c dock, and, mounting machine guns, sent Q stream of steel- -jacketed bullets ct Japanese warshipS and c transport in the Wnanepoo.
 Great artillery shells smashed down on the Japanese consulate building, ct the mouth of soochow Creek. Directly across this creek, which runs through the settlement, foreigners and million Chinese refugees are Fnassed in the south part of the foreign area. A mat ter of life and death to hundreds in the settlement-or to foreign warships.
 This was 6 new Chinese army that was fighting today. But north of Shanghai, Chinese were fighting desperately, sucidally, to stop the Japanese general offensive on the city. But here, the new Chinese ar- tillery too was opening c new phase of the battle.
 Over American Ship
 Japanese destroyers, firing on the Chinese in Pootung, began sending their shells directly over the Aus gusta and the British Cruiser Da- nae.
 Shells screamed past the tower of dominating Sassoon house on the water front from which observers watched the battle.
 shrapnel showered the British consulate general adjacent to the Soochow Creek bridge-the Garden bridge, aS 1t Is called. Consular of- ficials made ready to evncuate 1t If necessary.
 Four Japanese airplanes roared Up the river ct low altitude, their motors full out, and swinging over Pootung laid down 6 barrage of bombs, seeking the Chinese batter. les. They failed, for the batteries kept Up their murderouS fire.
 Japanese Open Fire
 The Japanese opened this terrible WADCuTDC CCCY