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SITUATION BECOMES CRITICAL KULANGSU, China. June 23.— A Japanese government spokesman admitted today that I the situation here has become critical in view of the Nipponese occupation of nearby Swatow and the blockade of the coast line. Food stuffs and other daily necessities hitherto entered Kulangsu via Butterfield steam- i crs, but the Japanese capture of the main land, the spokesman stated, has now virtu ally isolated this island. m