The Waterbury Democrat., 1937-09-13
German Aduisers
 Make Chinese Retire
Continued from Page D

| to the League of Nations, the day after Mime. Chiang Kai-shek's ap- peal to the world, and one month after the fighting started at Shang- hai.
 The statement coincided with Q general Japanese attack which paled any activity of the months battle for Shanghai. The Chinese forces took terrific punishment and the destruction of property was stag gering.
 Japs Attack FuriOusly
 Jubilant after being held fast for nearly two weeks, the Japanese smashed at the Chinese lines with everything they had, hoping to turn an ordered retreat into rout. Jap- anese commanders ordered series of attacks throughout the night. It was indicated that the Japanese losses now, like the Chinese losses of past days, were appalling. Great land mines set by the Chinese blew up many advance units. But orders were given to press on at all cost. Airplane bomb, artillery and naval gun shells, set scores of villages, thousands of homes afire and set ten mile string of fires along the northern edge of the city from Yangtzepoo, on the east, beyond Chapel on the northwest.
 Sights Are Terrible
 The sights that may be seen from Shanghai roof tops today are more terrible than any of these long ter rible battle. Whole villages have been crurnbled into blackened dust. At points all over the wide battle front, great sheets of flame burst one after the other in the air and the clouds of black smoke that fol- low blot out whole sections of a countryside that a few weeks ago was picture of beauty and quiet.
 The Chinese withdrawal was or- dered last night when, the fight for Shanghai stalemate, the army's German advisers demanded flatly that Chinese generals withdraw to the third defense area mapped out at the start of the battle.
 In making their demand, the German officers had to overcome stubborn resistance. The Chinese argued that they had held the Japa- nese back. The Germans retorted that the stand had been made at @ lost in lives that was prohibitive. 10000 Chinese Killed
 It was estimated that the Chi nese had lost 10000 killed and 30,- 900 wounded in four weeks; the Japanese 10000 killed and an un- estimated number wounded.
 Confronted with the German de- mand, the Chinese general staff is- sued orders for the retreat. They had been reluctant to do so, first because they did not want foreign nations-or the Japanese-to think they had weakened. Secondly, they feared the bad effect on the morale of their men. ...
 Chinese military spokesmen esti- mated that the withdrawal would occupy the rest of the week, and that during the next i've days the Chinese would fight strong rear guard actions to cover 1t.
 Strategic Retreat
 It was emphasized that the re- treat was a strategic one. It was the third stage of defense which the German advisers planned on the basis of the brief Shanghai war of 1882 under identical tactical con- ditions. The first stage was to slow down and harrass the landing oi Japanese troop reinforcements. The secondi was to dislocate the Japa- nese lines and prevent junctoin oi | forces.
 This new third phase is to with draw just beyond range of the Japanese naval guns-and thus tc deprive the Japanese of almost the entire strength of what has served them as heavy artillery. It is planned to leave the giant battle fleet of the Japanese useless so far as action is concerned.
 New Chinese Line
 It was understood that the new Chinese line, fortified and ready for weeks with reserve troops in it. would run through line based on the villages of Kiating and Quinsan, west and north of Shanghai.
 On it, the Chinese intend to stand for the first time in their fullest force. They have fought So far in dangerous positions from which they knew they must withdraw or be trapped.
 The whole movement, it was learned, was most carefully planned by at least ST German military ad- visers, including men who had ranked high in the old reichsWshr