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Today, the Chinese have over 300 divisions with 5,000,000 soldiers in the field, and 10,000,000 in reserve or training behind the lines. Over 800,000 guerillas are harassing enemy garrisons and enemy lines of communication. More than 600,000 regular troops are operating behind Japanese lines.

[[strikethrough]]The October 1941 seizure by the Chinese of much-contested Changsha -- and their attacks upon the rear lines of the Japanese beseiging Hong-Kong -- testifies to growing ability of Chinese troops to seise the offensive which may be intensified when the Chinese army receives sufficient equipment and munitions -- now rolling over the Burma Road in increasing amounts.[[/strikethrough]]

Up to the end of 1940, the Japanese losses were estimated at 1,600,000 killed and wounded. In the air the Chinese Air Force has been supplemented by American bombers sent under term of the Lend Lease Bill; and by approximately 250 American pilots who resigned commissions in the U.S. Army to go to China. These pilots have been sent specifically to defend the Burma Road.

[[strikethrough]] Now as to the Burma Road, China's life-line -- As a result of traffic corrections made by the recent American commission to China, 400 supply-laden trucks a day are now rolling into Kunming, Chinese terminus of the Burma Road. Thirty-five American mechanics from the U.S. Army are enroute to China to man six dispatching and service stations along the road. Two-way radio patrol cars are shortly to run over the road. The road is now being [[strikethrough]] asphalted [[/strikethrough]]pathed. In the next few months the Burma Road may well be the decisive factor affecting the battle of the Pacific -- and the battle of the Atlantic.[[/strikethrough]]

The economic situation in China has developed favorably despite the war, in line with Chiang Kai-shek's decree to resist and reconstruct. Up to the commencement of hostilities, the hidden wealth in the southwestern and northwestern provinces remained unexploited, while industrial enterprises and technical experts were never