 Despite this, the Japanese captured Wuhan on October 27, 1938, forcing the KMT to retreat to Chongqing (Chungking), but Chiang Kai-shek still refused to negotiate, saying he would only consider talks if Japan agreed to withdraw to the pre-1937 borders.In 1937, the Japanese Imperial Army quickly marched into the heart of Chinese territory.With Japanese casualties and costs mounting, the Imperial General Headquarters attempted to break Chinese resistance by ordering the air branches of their navy and army to launch the war's first massive air raids on civilian targets.