Show Chiang Says 7 Top Units Defeated in Manchuria April 9 UP Chiang JL Chiang shek Kai said Friday seven even of his best divisions were destroyed in Manchuria but declared defiantly the Communists cannot conquer China In one of the frankest public speeches of his long career as 85 Chinas China's leader the generalissimo told the national assembly I confess seven of the governments government's governments government's governments government's govern govern- ments ment's best divisions were destroyed destroyed destroyed de de- de- de in Manchuria They were my best armies that under my command accomplished the revolutionary revolutionary revolutionary revo revo- campaigns with glory These divisions are being reorganized reorganized reorganized Chiang said adding I refuse to admit defeat because our fighting strength Is still powerful pow pow- erful Chiang evidently meant the di divisions divisions divisions di- di visions were destroyed over a considerable considerable considerable con con- period of ot time There has been no recent heavy fighting in Manchuria Chiang spoke deliberately and seriously The assemblymen in deference to his serious mood withheld applause He made no mention of the presidency which he says he wants to turn over to someone else In North China he said our strength under Gc Gen Fu Ts yi Tso yi is growing I guarantee within six ix months to annihilate all Communists Communists Communists below the Yellow river in central China Conceding we have made serious serious serious seri seri- ous military mistakes Chiang said his armies are changing strategy No longer will they try i to defend all points but will concentrate concentrate concentrate con con- for decisive blows As he phrased it the new strategy is one of big eat little He promised however to defend not only central and north China but Manchuria as well welt vowing I In 30 years or 60 years the reds will not conquer China On the subject of inflation the generalissimo declared d China I. I is solvent He said China has enough gold silver other assets and United States dollar credits to re recall recall recall re- re call all of the Chinese currency afloat Chiang said that now with I in assistance from the United States the prospects of ot economic life arc are brighter than ever Despite foreign criticism of our inflation and military defeats I have faith Some foreign observers predicted predicted predicted pre pre- last September that north China would collapse at the end of last year There is I con confess Cess a real danger danger danger dan dan- ger in the political and economic situation but it is psychological psychological- created by Communist propaganda ganda The generalissimo criticized the failure of ot the people to observe our program of austerity saying If that situation is continued our reserves will wUl be worthless regardless regardless regardless regard regard- less of their size I 7 1 appeal to you all to save the nation from this danger |