Show WAR TERRORS GRIP SHANGHAI SHANGHAI May 2 UP The tP-The The danger of widespread terrorism re revived revived re- re war tension in Shanghai today today today to to- day as 93 reports circulated that thousands thousands thousands thou thou- sands of at Chinese guerillas had slipped into the city to harass the Japanese International Settlement police doubled their patrols and searched refugee camps f for o r guerillas equipped with firearms and ex ex- explosives explosives plosives hiding there The arrest of ot two bomb throwers after an attempt to blast a truck loaded with Japanese soldiers and information that more than 2000 terrorists terrorist had infiltrated the city aroused police apprehensions One report said special agents of the National Salvation association association tion and other patriotic organizations were in Shanghai and the surrounding surrounding sur sur- rounding area under ord orders rs to conduct conduct conduct con con- duct a terror terrorist campaign against the Japanese Battle Con Continues S Meanwhile fierce fighting continued continued continued contin contin- on the Shantung front where Japan has been struggling to gain control of central China Latest dispatches indicated the new Japanese offe offensive sive against Suchow Suchow Suchow Su- Su chow and the railway has been blocked but neither side claimed important successes Chinese said they were holding their defenses abon along the wang wang- wang line while making strong attacks along the entire line Japanese said they captured Chinese Chinese Chinese Chi Chi- nese positions at about miles mUes northwest of They also asserted they had slain Chinese in the Shantung fighting at Battlefront General Li Toung-jen Toung said the Japanese offensive movement in involved involved involved in- in three army units totaling about men with re re- re serves One body of Japanese troops is operating at and along the railway another between and and the th third rd in inthe inthe inthe I the sector i The Chinese counter offensive in I i Shansi and Honan provinces apparently apparently ii has established a buffer zone i nearly 50 miles wide on the north bank of the Yellow river Reports from said foreign foreign for for- eign elga sources there confirmed the fact that the Japanese lost 21 planes in their raid on temporary Chinese capital last Friday The Chinese lost six or eight planes Chinese leaders in said 1 the drawing of all available Japanese Japanese Japanese Jap Jap- anese manpower from other fronts to Shantung has prevented the Japanese Japanese Japanese Jap Jap- anese from consolidating military control of provinces north of the Yellow river preparatory t to political political pout pout- ical and economic development Japanese efforts to combat Shanghai terrorists brought friction between the Japanese and authorities authorities authorities ties of the attempt to bom bomb bomp a JAPanese Japanese Japanese Jap JAP- anese truck in the heart of the Settlement Settlement Settlement Set Set- Japanese gendarmes were were placed in the Louza police station in that area British soldiers of the Seaforth Highlanders regiment then marched in and began patrolling the Nan Nan- king road area United States marines marines marines ma ma- rines kept to the limits of their nea near near-by by defense area but maintained maintained main main- patrols along road Japanese Withdraw Later the Japanese gendarmes were withdrawn after making a thorough search of ot all buildings near the scene of the bombing at at- tempt Tension lessened and the Highlanders returned to barracks A Japanese spokesman said an agreement satisfactory to all concerned concerned concerned con con- had been reached The Japanese-dominated Japanese reformed reformed reformed re formed government of China at named Li nan Chien-nan superintendent superintendent superintendent su su- su- su of customs at Shanghai Shanghai Shang Shang- hai where before the war approximately approximately approximately half of ot Chinas China's customs revenues were collected This was in line Une with Japans Japan's efforts to control control control con con- the customs service here which has been opposed by British and other foreign authorities Understanding Reached In Tokyo informed sources said an Japanese Anglo-Japanese understanding on the Shanghai customs had been reached in talks between Sir Robert Craigie Craigle British ambassador and Kensuke Horinouchi vice minister for foreign affairs It was understood Jauan was to guarantee the servicing of ot Chinas China's foreign loans based on customs re re- re Japanese news agency said at Shanghai that customs receipts receipts re receipts re- re would be divided between the regime and the similar government set up under Japanese control at until the contemplated contemplated contemplated con con- merger of the two regimes is effected |