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Show TROOPS BATTLE - INSIDEJIANKING SHANGHAI. Dec. 10 (UP) Shack troops of the Japanese armies were reported to be streaming through artillery-breached walls and shattered gates of Nanking shortly before midnight tonight Reliable reports received here said bitter street-to-street and progress after the-capital's ancient j battlements had been battered for ! hours by terrific aerial and artillery lire. i The Chinese were resisting the as- sauK in the narrow streets which I for centuries have known the clash of swords and rattle of musketry of Invaders seeking rich loot in the capital of the Mings, llttmatum Ignored The Japanese offensive started at 1:W p. m . after the Chinee bluntly blunt-ly had refused to answer an ultimatum ulti-matum to surrender. Heavy artillery poured hundred of shells into the capital and bombing bomb-ing plane dropped tons of explosives explo-sives In all part of the city, many of the bombs landing dangerously near points where Americans had taken refuge. The deadly rain of shell and bomb was the starting signal for -Jicinese infsnlrymsa-wha. wsnt "over the top" from all sidss. Ths chief points of their drive waa Nanking's three main gates in the east south and southeast aids of ths wall. Fierce Battle Raging There was every evidence that the battle for possession of the capital capi-tal would be on f the most bitterly bit-terly fought ln-.the history of modern mod-ern warfare. Foreign, observers believed that the Chinese considered the siege of Nanking, China's last stand and that the Japanese, having hav-ing conquered Shanghai and the rich northern provinces, wsrs confident con-fident there would b no further Chinese reslstanc aftsr ths fall of the capital Shanghai banking circles heard that negotiations for cessation of hostilities was under way In Tokio between Koki Hirota, ths Japanese foreign minister, and Hsu Shih-Ylng, Shih-Ylng, ths Chlnss ambassador. It was reported without confirmation confir-mation that ths Chinee voluntarily had offered the resignation of Generalissimo Gen-eralissimo Chiang Kai-Shek pending pend-ing the outcome of the negotiations. Chiang la Hiding Ths where about of Generalls-imo Generalls-imo Chiang was unknown but he was believed to be In hiding at Nancnang, In Kwangsl province, NANKING. Dee. 10 (UP) The Jspanese army laid sisgs to Nanking Nank-ing tonight from thrse sides. Furious fighting waa in progress in every direction except In the northwest and western sections a ear ths Tsngta river. hell and bomb war raining Inside the city while Chine antiaircraft anti-aircraft , batteries and machine gtinfiers step ths wall kspt up a constant fir. Airplane bombs fell near the United States gunboat Panay of the Tangti rivsr patrol a it prepared pre-pared to steam up ths river a half mil to a position of comparative aafty. I |