Word: yenan
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China's situation was the darkest in many months. The Government had lost face because its promises had not been fulfilled. When Nationalist armies captured the old Red headquarters town of Yenan last March, Nanking had predicted that remaining Communist armies would be swept from the field in three months. Nanking had made promises about economic recovery too. But last week, just three months after the fall of Yenan, inflation was worse than ever, and the Communists seemed to be winning the war north of the Yellow River...
...Yenan last week the Communist elite of the onetime Red capital seemed gone for good, but the natives of the place-whom the Chinese Communists loved to call lao pai hsing (the common people)-were drifting back to town from their temporary and dusty bivouacs in the Shensi hills. TIME Correspondent Frederick Gruin looked on, then cabled this account...
...come back to Yenan? Yang snorts. "I never left," he says. "I am too old for retreat." He simply took refuge in a cave overlooking the city. The day after the Government troops entered-after the street-sniping ended-Yang came down. Aiya! His shop was intact, but Government soldiers had taken his bedding and wares of toothpaste and Yenan brand cigarets. For two days he had been impressed as a water carrier. Now he was free again with a Government relief stock of cigarets and flour for ta bing (cakes...
...Faith. "Somewhere in North Shensi" the old Yenan radio came back on the air. It repeated the months-old line that the Reds were "trading empty cities for Kuomintang casualties," although four months ago the Communists said they would defend Yenan "to the death...
...last handouts from Yenan put this Red faith confidently: "The more Chiang concentrates his forces . . . the more he will expose himself." Another Yenan handout of the penultimate period contained a puzzle for those who still think that Chinese Communists are merely agrarian reformers without connection with Communist movements elsewhere. Yenan based its faith in the future on "factors of decisive significance" in the outside world. These included an inevitable "American crisis" and "victories of the Soviet Union in economic construction and foreign policy...