少女と少年、そして兵隊さん二人は微笑んでいます。平和な光景です。

少女與少年，並且兩人的士兵先生笑笑著。就是很和平的景象。

A boy,a girl and two armys are smiling. It is very peaceful scenery?!

These sources provide the following explanations.

Quote from the Asahi Graph.

硝烟下の桃源境 江南の「日の丸部落」

硝烟なほ烟る揚子江附近の片隅に、我が軍の庇護によつて平和に歸つた二つの部落がある。その一つは『日の丸部落』といはれる盛家橋部落で、入り口には『兵は立ち入るを禁ず』といふ派遣部隊長の告示がある。村長さん格におさまつてゐるのは田窪忠司部隊長で、村民たちから先生々々と慕はれている。約四百名の村民は、我が軍の保護によつて敗殘支那兵の掠奪をまぬかれ意を安んして土に親しんでいる桃源境である

(translation)

Utopia amidst the Gunpowder: The "Rising Sun" Village in Jiangnan.

There are two villages regain peace thanks to protection by our army in a corner near the Yangtze River, where gunpowder still smokes. One is Shengjiaqiao village, known as the 'Rising Sun Village.' There is a notice by the Unit Commander at the entrance: "Off-limits to soldiers." Unit Commander Takubo Chūji, who acts as village mayor, endear himself to villagers. This is a utopia where about 4000 villagers are free from looting by losing Chinese soldiers, break the earth without anxiety.

Quote form the Shina Jihen shashin zenshÅ« (chÅ«): Shanhai sensen.

硝烟下の桃源境

戰火の余燼未だ収らぬ揚子江附近、寶山縣の片隅に、我が軍の溫かい庇護の手で平和に蘇つた部落がある。その名もゆかしい「日の丸部隊」といはれる盛家橋部落で、村長さんの格に納まってゐるのが田窪忠司部隊長、村民からは先生々々と慕はれている。村民は約四百名で敗殘支那兵の掠奪もなく、土を耕し、綿を摘み、朝夕を平和に樂しむ桃源境である。

(translation)

Utopia amidst the Gunpowder

There is a village regains peace thanks to warm protection by our army in a corner of Baoshan prefecture, near the Yangtze River, where embers of battles have not yet gone. It is Shengjiaqiao village, known as the 'Rising Sun Village.' Unit Commander Takubo Chūji, who acts as village mayor, endear himself to villagers. This is a utopia where about 4000 villagers are free from looting by losing Chinese soldiers, break the earth, pick the cotton and rest peacefully in morning and evening.

The caption of the photo is:

我が兵士に護られて仕事より部落へかへる日の丸部落の女子供の群

A group of women and children of the "Rising Sun" Village returning to the village from work in protection by our soldiers

and

夕になれば白一面の綿の花畑から嬉々として我家へ歸る

In evening [villagers] happily return to their houses from white cotton field

Use by the Nationalist government and Iris Chang

This photograph appears in the Riguan Baohang Shilu 日寇暴行實錄, which was published by the Politburo of the Military Committee of the the Nationalist government in 1938. The caption reads:

江南農村婦女，被一批一批的押送到寇軍司令部去，凌辱!輪姦!槍殺!

Iris Chang runs this photo with the caption: "The Japanese rounded up thousands of women. Most of them were gang raped or forced into military prostitution." Her photo credit reads "Politburo of Military Committee, Taipei." In a response to criticism of her use of the picture, Chang said: