August 22, 1946

Govt repts Communists retreat along Lung-hai rr as result of Govt counter-offensive west of Suchow; Communists say they will stop mobilization if Govt halts attack; Govt troops hold out at Tatung; both sides charge each other with opening northern Kiangsu Prov offensives; map; Communists renew talks with Stuart; Shanghai Communist office denies Yenan issued mobilization call

effect of decision on futures market noted

Primary election returns seen indicating trend to Right

Tito's defense of attacks refuted