SUNDAY, JULY 28, 1940 T HE MTIC HT0A N DATT LY PAGE THREE As The War Goes. .. So Goes The World T H E I n Eng land HITLER'S verbal prelude to the Battle of Britain was followed at week's end by the stiffest dose of horror from the air England has ex- perienced since the war began. Hundreds of Messerschmitts and Heinkel bombers blackened the sky over the English Channel, strafing and bombing British coastal ship- ping, and inflicting internal damage from Scotland to Wales. This heightened aerial attack fol- lowed Foreign Secretary Lord Hali- fax's emphatic official answer to Germany's "last chance" peace offer. The Foreign Secretary's broadcast reply was strong in its rejection of the German "ultimatum." "The people of the British Com- monwealth, along with all those who love -truth and justice and freedom will pever accept this new world of Hilr', hdelr. Silr Kingsley Wod, Chancellor of the Exchequer, told the British peo- ple last week that they must pay a 42% per cent standard income tax plus a sale tax, which will cost them one-third of the wholesale value of such "luxuries" as furniture and lip- stick. Meanwhile it was announced that Britain will extend her blockade to ASpain and Portugal next week, there- by bringing all Continental Europe within the scope of her naval con- trol. (This action would mean the delineation by the United States of a ncobtzunde e rm o that the decision to extend the block- ade had been reached after consul- tation With United States. In France WAR ItaBombs 'Rock'J thtnks of Germany.d By ednes-r ating British and French oil fields,) - barges and cars to increase the sup- ply and facilitate transportation, in- *cidentally strengthening her appease- ment bid for friendship with Eur- Fo reign Minister Joachim von Rib- bentrop spent two days conferring with bigwigs from Rumania, Bul- servers expect he will change these nations into economic "gaue" of the In The Bali WHILE the rest of Europe squab- - bled, Soviet Russia quietly capped __~ its campaign of penetration into the _ Baltic with virtual complete absorp- - tion of Latvia; Lithuania and Estonia. Newly-elected parliaments in the " AP Baltic Republics had voted last week OEW. following military occupation by the Russian armyi and ani intensive pro- paganda campaign, to seek union with Gibraltar, Britain's classic symbol the Soviet. of durable strength last week suf- * (In Washington Sumner Welles, fered two heavy bombardments by acting Secretary of State in the ab- Italian planes. Anti-aircraft shell sence of Cordell Hull, condemned the fragments fell in La Linea (1); at Russian action by inference, speak- least 20 bombs struck the town of ing out against "the devious process- Gibraltar (2), the seaside resort of es" by which the three countries were Caleta (3) and docks (4). Other deprived of their freedom by "one bombs hit in the area around Eur- of their powerful neighbors." opa Point (5). Knudsen Tells Of rog ress FIRST AUTHORITATIVE state- arming came at week's end from Walliam S. Kudsen, member of te in charge of production. Mr. Knudsen declared in a "prog- ress report" on his eight weeks on the Commission that. "with the con- tinued cooperation of industry and the interested government agencies, we can be confident of a production machine capable of attaining the definite goal specifically stated in the request now before Congress for funds to equip completely a modern army of 2,000,000 men." In his report, Mr. Knudsen stated that the August schedule called for 895 complete combat and large trans- port commercial planes for delivery during that month. Of that number, 390 will be de- livered -to the Army and Navy, 236 to the British Government, and 84 to other foreign governments, with 174 large commercial transports for domestic use. Mr. Knudsen declared that very definite progress was being made in acquiring machine tools; that no problem existed in small arms and ammunition, and that studies are being made in methods of expand- ing shipbuilding facilities. Pan-American Conference Attempts T o Evolve Hemisphere Defense Plan REPRESENTATIVES of 21 sover- . egnstaesin heWestern Hemi- sphere met this week in Havana, ostensibly to cement a united de- fense against a seemingly inevitable Nazi thrust. Biggest problem confronting the delegates was action on the proposed ' joint trusteeship" over all Ameri- can dependencies of nations acon- quered by Germany. At the outset French and German diplomats gave private assurances that no attempt would be made to change the politi- cal sovereignty of Martinique or oth- er French possessions in the Western Hemisphere. But these assurances raised the question whether the pos- sessions of the German-controlled French Government did not neces- sarily represent a transfer of sover- eignty within the meaning of the Monroe Doctrine. Secretary of State Hull, in an opening day address offered Latin America United States leadership and dollars to fight the totalitarian menace, and proposed adoption of the "joint trusteeship." He served notice that the United States would not countenance any effort to "mod- ify the existing status" of European possessions in the Western world, whether by cession, by transfer or by any impairment whatsoever in the control heretofore exercised." Pro Poesg Cartel Plan sessions be temporary and that they be returned to their original sover- ein asd soon as posible, or granted (3) That the parent mandate com- missions to be set up make recom- mendations for any military and naval protection deemed necessary to protect the territories from an outside menace. Immediately, Leopoldo Melo, chief~ of the Argentine delegation, put his country on record as opposed to the Pan-American trusteeship. Edouardo Suarez, of Mexico, raised some ob- jections and the Conrference became deadlocked over the issue. Late reports Saturday declared however, that Argentina was ready to cooperate with other American Republics in "some sort of plan" to protect the. Western Hem~isphere Additional clouds were cast over the meeting when Germany's eco- nomic minister, Walther Funk, de- clared in an address before foreign correspondents that in the future German trade with South America "will be carried on either on a basis of free agreements with the Sover- eign South American State or not at all," thereby manifestly express- ing the resentment felt in leading German circles aga-inst plans for the Pan-American cartel. I Corel Hull The proposed plan provided: (1) That the Americas act as trustees of the European possessions in this hemisphere; (2) That mandates over these pos- Four Nations Eye The World's Richest Colonial Plum - S FRANCE MOVED along the road to totalitarianism last week, Marshal Petain's government decreed the punishment of those "traitors" who had led the fight against Ger- man aggression. Declaring that "on the day of their trial our dead will be present among the accusers," Minister of ~Interior Adrien Marquet, speaking in Pc- tamn's name, made the announcement shortly after former Premier Edou- ard Daladier and 16 other former Governmtent officials, had been con- fined to Marseilles by Governmental Th statement described the men to be punished as "those who plunged our country into war at a time when it was not prepared to fight." When the German army attacked, Marquet said, "a spent political, economic and social organization collapsed over our heads. In the name of justice those responsible for so much political in- eptness and military ignorance will be punished." ALF HITLER must rest easier1 this weekend as he reflects that ~t last Otto Strasser is in his hands. Strasser, arch-foe of Naziism, with Herschel Grynszpan, young German- Polish Jew who assassinated Ernst Vom Rath, a German diplomat, in the latter's Paris office, Nov. 7, 1938, and precipitatedl the November, 1938 anti-Semitic riots in Germany, were reported from Paris to have fallen into German hands. Authorities refused to comment, but Louis P. Lochner, Associated Press correspondent in Berlin, said the news came to himn directly from an informant who had been in Paris at the time the Germans took over. Strasser, with his brother, Gregor, had been among the early supporters of Hitler. They were of the left- wing'element from which the NSDAP sprung but which was gradually weeded out as the party grew in power. Otto Strasser left Hitler in 1930, but Gregor remained with him, to be eliminated in the June 30, 1934 purge. Since that time Otto Strasser has carriedl on his anti-Hit- ler activities in every country of Europe. Again last week the Royal Air Force carried out successful bombing expeditions against the northeastern industrial section of Germany, fight- ing against numerical odds to drop their loads of death on factories, navai and airplane bases-. In TheBalan THE WAR between Germany and England ended this week as far as the Balkan countries were con- cerned. They unanimously awarded the decision to Herr Hitler and rushed - ..C A MYBAKO- road to China ***ONGKONG'r'~ . . ... . . . . HANOI North of her4 . ~ patrols coulc ~AP - blockade of ti ~B'U'M A ~HAINAverging on Iai * V .... tANGGKO - , Siam 4767 nautiCal SPRATLY I.* 4 (UteSae) * ~~ BORNEO~ -+ ~MALAY *Bits PENINSULA - -' Brtih - - - 7~ - - - - I - - HAMAAHERS -- -O Ja-va- ---S--------g-IS- p sS PADA G * 4.JMA ON BCEdaBSe 8AL- RUBE IL-UA SPCE COF.E- c ~ QIIEI EEL (Chiefly Rie GOD "~ I f OPE MAGNSM1T ACPLMASjPosbl e, U. S. cruiser d establish a rade lanes con- pa n. Oceant les to / HonluhII (a panes M$ anQd ateQ) YAP L Frmarn Equapuar outes --o - --A-tack * * * THE FABUL OUSLY RICH East In- dies are the world's prize colon- ial plum. Four nations are mightily concerned with the fate of those trop- ical islands. Two-Great Britain and Holland -are "have" nations, who between possible the canned food indus- try. The scheduled-f or-independ- ence Philippine Islands also have a claim on U.S. protection until 1946. Since the early 1500's, when Port- ugal showed the way, the Malay Archipelago-largest group of islands imports, and herself takes some $25,- 000,000 worth of island exports. It's a fat trade balance in Japan's favor, and she vitally needs the oil, tin and foodstuffs so easily obtain- able. When Holland was invaded, Japan immediately announced she would Philippines. It is less than 2,500 miles from all the Indies, easy steaming distance for an armada. But it also has advance fortified bases at Hamn- an, Yap, Palau and the Spratly is- lands, all within a day's run of vital Indies objectives. (2) Britain has a modern base at adequate Oriental bases. Manila is only a minor fleet station. Major U.S. base in the Pacific is Hawaii, too far away for mass action in the In- dies. (Holland and Britain doubt- less would be tickled to grant the U.S. navy use of their bases, but U.S. public opinion probably would not routes to Europe necessarily would run the gauntlet of the Birtish fleet off Europe. U.S. cruisers-not the main fleet, but heavy cruisers de- signed expressly for such purposes- could harry her trade lanes. - Japan has the immediate advan- tage. The map indicates that the