The Waterbury Democrat., 1937-08-26
American Officials
 Fear Complications
tConsinued from Page D

NOVkAbAkAGsA sibility for the firing of this shell has not been fixed.
 Withhold Comment
 While officials here withheld comment on today's shooting, 1t was revealed that the possibilities of just an incident have gravely con- cerned officials of this government from the beginning of the fighting in the Shanghai area. Secretary of State Cordell Hull repeatedly has express anxiety over the safety of American officials on duty in the zone of hostilities.
 Many competent observers believe that Generalissimo Chiang Kali Shek. China's strong man," also realized the possibilities of such in cidents and their complications when he chose to resist Japanese invaders in force in the Shanghai area. These observers believe that Chiang realized that each addition al day of hostilities in the vicinity of the international settlement at Shanghai and in the area where foreign nationals have past proper ,.ty investments increased the possi- bilities of foreign Intervention in the Sino-Japanese fighting.
 Chiang Had Made Plans
 .<These observers believe that Chiang long had prepared @ military campaign of resistance to Japan ii, the Yangtze valley; that ne planned from the first, if defeated at Woo- sung and Shanghai, to withdraw from that peninsular and retreat slowly up the Yangtze, drawing the Japanese forces after him. Through out such campaign the war would be waged in territory where foreign nationals, particularly sle British, have their largest holdings.
 War Briefs
 Shanghai, Aug. 26.-(UP).-Two divisions of about 21,o00 of Gen. Pa. Chung-Hsi troops for Kwangsi reputedly the Aercest fighters in China, have left Kweilin for North China, reliable foreign information disclosed today.
 They will go by truck to Cheng- chow in Human and then by rail to Nankow, scene of the great wall fighting. The information indicates that Pal Chung-Hsi, who is Man. king, is convinced that Nanking Is determined to resist the Japanese in the north to the utmost.
 Generalissimo Chiang Wai-Shek, once Pal Chung-Hsi's companion- in-arms and later his bitter enemy, was understood to have made Pal military strategy.
 Genoa, Italy, Aug. 26-(UP)-The 7,000-ton cruiser Raimondo Monte- cuccolo, carrying @ crew of TOO men and officers, was ordered to sail at full steam today for Shanghai.
 The Montecuccolo IS equipped with catapaulting devices and three planes, torpedo and mine laying facilities. She also carries eight six inch guns, eight 3.9-inch guns, eight S7 millimeter guns and eight 1a millimeter guns.
 The men aboard the Montecuc- colo represented the second contin- gent sent to Shanghai to protect italian interests. The first battalion of the Savoia's Grenadiers regiment left Massawa, Italian Eritrea, for Shanghai on Tuesday.
 The San Marco marines are lock- ing after Italian subjects and pro- tecting Italian interests in Shanghai at present.
 Peiping, Aug. 2e--(UP)-Members of the diplomatic corps protested tc the Japanese embassy today against the constant transit of armed Jap- anese troops through the embassy quarter.
 A member of the American ein- bassy staff, delegated to represent the administrative committee of the quarter, told the Japanese that the troop movements prejudiced the quarters neutrality.
 ! It was understood that this gen. eTal TepreSeutaJlOn was paCkeu py Q joint American British attention calling" to the increasing tendency of Japanese troops to use the quar- ter as g base for their military operations.
 Tokyo, Aug. 26-(UP)-The gov- ernment, increasingly anxious over the Chinese war crisis, today called to its aid the venerable Prince Kim- mochi saionji, last of the oenro or elder statesmen of imperial Japan.
 Prince Fumimaro Konoye, the premier, made the pilgrimage to Prince eaionji's mountain villa at 0otemba where he lives in the re- tirement that is broken only ct the most critical times in the eoaantFv'l affairs.
 Tsinanfu, China, Aug. 2e-tUp)- John M. Allison, American consul .na A a.aAasss . e4s.ssn Ae,t4n4y AsA aaS.am A.a