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Show JAPAN TRANSPORT SUM, OTA SAYS SHANGHAL Feb. 8 Foreign military observers ssld todsy there wss basis, despite Japanese denials, for believing Chinese reports thst Chinese srtillery hsd sunk a Japa-nese Japa-nese transport snd killed 300 men In the Yangtze river 30 miles above Klukiang. Foreign sources ssld they hsd "responsible Information" that Chinese Chi-nese operations along the Yangtze, perticularly on the south shore between be-tween Wuhu snd Kluklsng, were "becoming Increasingly strong." These reports ssld a new Chinese Chi-nese army, based In southern Anhwet province below the river, wss "virtually unopposed" In thst region snd hsd been reported harassing har-assing Japanese shipping with srtillery sr-tillery emplsced on the south shore. |