The Waterbury Democrat., 1938-07-06
First Year or Great
 War Has Been Costly
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I suit of Q military policy which alienated wealthy and conservative Chinese who might have favored a compromise in north China or might have supported new regime.
 The war thus far has wiped out wo-thirds of China's modern in- dustry and cut of half of her for eign trade. Therefore conservative Chinese are among the most deter mined to resist occupation.
 Japan Most Barbarous
 Shanghai, July 5-(Up)-Gener- alissimo Chiang Kai-Shek, in a statement addressed direct to the Japanese people on the eve of the first anniversary of the war, asked today:
 DO you know that your army has become the most barbarous and most cruel force for destruction in the world?
 Think of the consequences if Chinese airplanes visiting Japan, bombed Osaka and Tokyo as Japa- nese bombed Canton, instead of presenting you warm sympathy.
 DO you realize that your war costs have exceeded the cost of the Russian n-Japanese war?
 How many of your brothers, sons and nephews have become ghosts on the Asian continent?
 How many young widows and orphans are there among you?
 "What have you profited from Manchukuo 50 far but higher taxes?"
 AS the generalissimo made the statement in Hankow, Japanese forces opened . three-way drive on the provisional capital. pushing up the Yangtse river, driving down from the north and branching out in a hanking movement designed to encircle the city. Japanese Smash On The main Japanese forces poured into the Hukow area and spread out to stamp out the last Chinese re- sistance as well as to clear the Yangtse river there of mines and barricades intended to halt Jap- anese warships.
 From Hukow, 1e0 miles below Hankow, a drive along the Yangtse to Hankow got under way. Japanese airplaneS were sent to bomb path through Chinese lines and river barricades to the north. According to Japanese reports, the planes met with little resistance from the Chinese because the bulk of China's first line planes had been destroyed Sunday.
 Another column operating out of Hukow, started southward across Lake Poyang for Nanchang, China's main air base, to open thanking operation against Hankow.
 To the north a third column was driving westward from Hofei, in Ar1- hwei province, toward the Peiping- Hankow railroad from where 1t then will cut southwafd toward the pro- visional capital.
 Next Objective The next objective of the Jap anese in the main drive along the Yangtse was Kiukiang, 26 miles above Hukow. All foreign warships, f except the British gunboat Cock hafer, left Kiukiang and many for eign nationals were evacuating the area to seek refuge in Hankow.
 Japanese naval authorities said that at least 12 Chinese mine play CTS and an equal number of torpedo patrol boats were operating in the vicinity of Kiukiang, preparing for the arrival of Japanese warshipS from Hukow.
 There were definite prospects that Hankow would be subjected to many air raids within the next few weeks since Hukow is only about 100 air miles away. Japanese aircraft car riers already were moving up the Yangtse a few miles north of | Hukow.
 One of the chief difYiculties in the path of the Japanese was the heav- ily-mined Yangtse. Aside from the mines, there are numerous barri- cades between Hukow and Hankow. These consist chiefly of sunken ships, cement blocks and large boulders.
 Mines Are Deadly The mines, along with Chinese artillery. already have taken . large number of Japanese lives and have disabled ships and planes. Foreign military observers here reported to- day that three more damaged Jap anesc destroyers had arrived at the mouth ofg the Yangtse from Ara- king, along with an aircraft car Tier carrying 90 damaged planes and @ transport vessel with It's stern blown out.
 One damaged Japanese destroyer was reported to have arried at the mouth of the river above here yes- terday.
 Japanese naval authorities said that since passing Anking their minesweepers had destroyed over 260 mines and were forced to pass over at least six untouched feids.