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E I G A i= .,i.A iUiii,.yiR""ss.i.s.R-D K .O ==is .~~~4 ..i.:..... s;:.-.S.-: -u f fFi la d - -I ........ - aii^Ei..TA..AYA..U. > -r S t a ,L iiiEZEENE \ ii "rr 1 "25: iELiK E LUII :shi iii = I FOREIGN U.S. eyes shifed from Russia back to the Far East again last week, as diplomatic relations between Wash- ington and Tokyo strained near the breaking point. First indications of trouble came late Thursday when Vichy announced that France had accepted "in prin- ciple" Japanese demands for virtu- ally complete military control of In- do-China to "protect" that colony frqm falling under British domina- tion. f Japanese spokesmen rationalized well, but not convincingly. Tokyo papers painted vivid pictures of Bri- tish, Free-French and Chinese troops ready to take over the rich resources of the colony. Japanese forces, they indicated, wanted no part of the booty, sought further military bases only to protect Japanese interests and Vichy forces in the colony from the aggressors. From Vichy, where conversations between Vice Premier Admiral Dar- lan and Japanese Ambassador Soto- matsu Kato were proceeding "satis- factorily," came a report that no def- inite agreement had been reached.,-In Hanoi, meanwhile, Governor General, Admiral Jean Decoux and General Raishiro Sumita, head of the Japan-, ese military mission, worked out de- tails for Japanese occupation. By late Friday, Japanese warships were reported hovering off the coast of Southern .French Indo-China, and 12 troop transports were reported on their way to Saigon. Tokyo was los- ing little time in making good her diplomatic gains. In, swift movements, Japan was establishing herself midway between' Britain's colonies of Singapore and Hong Kong, and in a position threat- ening to Dutch, British and U.S. pos- sessions in the Indies group. By week's end, Tokyo was already treat- ing the Indo-China negotiations as "closed," while diplomatic and mili- tary feelers edged toward Netherland East Indies possessions. Vichy's attitude was one of com- plete resignation, the same attitude that has become synonomous with French negotiations since the German occupation.' Washington, however, was far from acquiescent. Acting Secretary Sumner Welles sent stern notes to Tokyo, President Roosevelt threatened oil embargoes. (See Col. 1 below). Russian Stalemate Again last week, Russian and Ger- man communiques offered little but contradictions. Berlin again cut its communiques to undescriptive reports telling of "troops advancing accord- ing to schedule on all fronts." Mos- cow, too, was terse; talked chiefly of "stubborn resistance." Despite conflicting reports, one thing was evident: the Russians were not fighting a 'inning war, but they1 weren't losing very fast either. Ger- man panzer units were still engaging the Russians in the vicinity of Smo- lensk, not many miles further toward4 Moscow than reported last week. The success of a panzer. drive is largely determined by its speed, but Nazi col-1 umns last week apparently had lost3 most of their original momentum. Only major Nazi advance admitted by Moscow was a German-Finn drive past Lake Ladoga. Blitz columns were reported as far as Petrozavodsk. Berlin also reported that the last remnant of the Stalin Line had been pierced in the Kiev sector to the south, and that Nazi troops were ad- vancing on a five mile front, less than 80 miles from the Ukraine capi- tal. On the main Leningrad battle front, German columns had already given up their original blitz strategy in favor, of heavyartillery and Stuka bombing of strongly reenforced Soviet lines. While Russians and Germans ap- peared to be deadlocked for the prbs- ent in a victory-less war, time was paying heavily into Stalin's hand, The original Nazi drive was scheduled to sweep through Russia at a time when her grain fields were green and un- burnable. That grain is, however, ripening fast, and retreating Soviet columns will leave little but ash and charcoal for food-hungry Berlin. Mediterranean Long ignored by*"the international spotlight, the Mediterranean area and the near east made page one briefly again last week. From Rome came the report that Italian air raiders had claimed two large merchantmen, an unspecified unit and a destroyer, and had dam- aged one battleship of the Nelson class and one merchantman. From Spain came persistant rum- ours that Germany was planning a lightning drive through Spain to cap- ture Gibraltar. Berlin said nothing. In Turkey, meanwhile, Nazi diplo- mats were dickering for permission to cross that country for a drive on the Russian flank. , Ankara was non commital, moved to play British vs. Germans, hoped Turkey could remain aloof. answered Argentina's note affirma- tively, claiming that Bolivia was "al- ways willing to accept a peaceful settlement in the border quarrel." Meanwhile, however, as nothing concrete came from the good offices of Argentina, Brazil and the U.S., bor- der fighting increased in intensity, and Bolivia called to the colors all men 'born between 1916 and 1919. Latin America's minor conflagra- tion, an 118 year-old baby war in world of adult new wars, meant litttle to the rest of the world except for its threat to reduce Pan-American- ism to nothing more than a Cham- ber of Commerce slogan. Real news from the south' came Thursday when Ecuador charged that 3,000 Japanese soldiers were seen in the Peruvian front lines as an ad- vance guard in border fighting. Hasty denials came from Tokyo, Lima, almost too hasty to suit cynics who watched leerily the ever-widen- ing scope of Nippon's ambitions. Em- phatic denials met however with em- phatic reassertions, and Saturday brought only rumors-that Japan was fostering the international arson in Latin America, that the slant-eyed soldiers were merely part of the large number of Oriental citizens in Peru, that Ecuador's propaganda chiefs had profited from lessons learned from Nazi professionals. -- - - Japanese Crisis Abortive Putsch I Next door to pugnacious little Peru and Ecuador is Bolivia, favorite hunt- ing grounds of Berlin's silent South American agents. And there last week news was made when an abortive Putsch failed, and President General Enrique Penaranda declared that the country was in a state of siege. General Penaranda refused to dis- close the plot, but newsmen wagered more than beer that it had something to do with a man supposed to be 6,000 miles away, fire-eating, 36-year-old aviator, Major Elias Belmonte, Air Attache of Bolivia in Berlin. Too tough, for his bosses, Belmonte had been sent to Berlin, where he grew to admire the Nazi system, wrote glowing letters home, was pre-or- dained the logical Fuehrer for Bolivia. Nothing more was known about the attempted coup d'etat, except that Bolivia has always been Latin Ameri- ca's chief Nazi hotbed. And at week's end Berlin smarted at the ousting of its minister to Bolivia, held the U.S. responsible. Four thousand Indians revolted, were' quickly -repressed Fri- day, and officials blamed Berlin. Numerous arrests were made by scurrying officials, four newspapers suspended as Bolivia recovered from its worst "Hun scare" since World War I. 'Peaceful Means' 'P Glib grandmothers of inter-hemi- sphere good will at week's end prog- nosticated a quick finish to the lat- est encore in. South America's two- bit war as the Peruvian government Friday sent a note to Argentina ac- cepting proferred "peaceful means" to halt border fighting with Ecuador. I Quito's diplomats had already --Karl Kessler and Bill Baker I AT HOME WHEN Peter The Great trans- formed an insignificant Russian frontier village into the great for- tress city of Leningrad two and a half centuries ago, he called it Russia's "Mindow on the west." As reconstructed, the "window" had the strongest iron bars. It became known as virtually impregnable. So secure were the czars behind its walls that they made it'Pcapital of all Rus- sia and gave it a glittering, brilliant court. Napoleon - reckoned it too strong and invaded Russia from Po- land. Even in 1914, Germany avoid- ed it, attacked from a different direc- tion. The Leningrad of 1941, second city of Russia, is a far cry from the Len- ingrad of earlier years-so different, in fact, that' most military men con- sider it more vulnerable to attack than any other large city in the world. Almost on the frontier, it stands out like a sore thumb invit- ing bomber attacks froni the west. Natural defenses against a land army are little better than a series of swamps and lakes and marshes, many of which have been drained. High ground exists nowhere. * * * FOR SOME strange reason Lenin- grad is cursed with more galvan- ized iron roofing than any other city in Europe. Such material is duck soup for bombers. The big wharves along the crowded winding waterfront always are crowded with lumber-lad- en barges headed for the Baltic or along the Neva river canal and the Volga for Moscow. These are more duck soup for bombers. Any enemy force, especially with the aid of Finland, has a simple stra- tegy cut out for it. 1 It must concen- trate on encirclement of the city from the southwest, then gradual envelop- ment -until the great capital of the czars has been cut off from its pre- cious rail and water communications with the rest of Russia. An army successful in this operation has Len- f-- T 'F rvaf nerable metropolis-but the blitz pace of the German army was not a matter of common understanding, at the time of their acquisition. An- other link in the city's defense, ren- dered useless in the case of a land attack, is the fortress of Kronstadt built by Peter in 1704 on an island 20 miles west of the city. A force of close to a million men is required to defend Leningrad-a city worth defending for many reasons besides its numerous concentrated industries, railroad terminals, arma- ment factories, and trade facilities. Its greatest value to the Soviet lies, however, in its position-it is a stum- bling block on what otherwise might be an easy road to Moscow. ** * LENINGRAD, as a great city, dates back to 1702. In that year Peter The Great marched on the village at the head of the iFinnish gulf, took it away from the Swedes, and built him- self a comfortable log house. Then he brought thousands of serfs from all parts of the empire and set them to work driving myriad log piles into the swampy land for the foundation of the modern Leningrad. From his cabin he directed the building of the great fortress of St. Peter and St. Paul-a stone bastion conceived as a keystone of defense against any prey- ing enemy. Palaces, parks and broad boulevards were constructed, but dis- ease and hardship claimed the lives of so many workers that the city was said to be built on bones. The streets were laid out lavishly, crossing and recrossing the delta channels of the Neva river on some 600 bridges. The finest of building materials were collected for the great palaces and ornate private homes, most of them now museums, hospitals, schools and clubs. 4 NTUMEROUS rail lines serve the .20th century city, particularly important to a Russia-at-war be- cause of its munitions, machinery, precision tool and instrument plants. LENINGRAD HIPDROME - Reprisal Measures / \ ;, Japanese moves in Indo-China last week (see above) brought quick re- prisal measures from Washington. By the end of the week, Japanese found their credits frozen in this country, a virtual embargo on essen- tial war materials that this country has been supplying-mainly, oil and scrap metal.. - The freezing order works thusly: A Japanese merchant has assets in this country. If he wishes to con- vert these assets to casl\ in order to buy American goods, he must now procure a license from the Treasury giving him permission for the con- version. The Treasury must know what the -money will be spent for, and if it happens to be war materials, no permit is issued. The order can work both ways. This country has been the principle buyer of Japanese silk. It is unlikely that the Japanese will continue to ship silk here if the assets gained in the sale must be frozen. However, experts say that if Bri- tish and American shipments to Japan of iron ore, scrap iron, copper and other metals, cotton, wool and oil were stopped, Japanese industry would be on its knees in a few months. Britain has already joined with the U.S. in freezing Japanese assets. Japan, in turn, has retaliated and frozen British and American assets, a fact received calmly by the State De- partment here. By request of Chiang Kai-shek, the freezing order was extended to in- clude Chinese assets also. Chiang's fears were that Japan might make use of credits gained during the China invasion. Army Wins Round The battle continued in Washing- ton last week over the question of re- for the carrying out of Roosevelt's re- quest. Yesterday the Senate Military Com- mittee approved a resolution and slated it for appearance on the floor of the Senate Wednesday. The Committee's measure would ex- tend the period of service indefinite- ly, depending on the desire of the President. This authority, however, according to the proposed resolution, could be curtailed at any time by Con- gressional action. The Committee's version mentioned nothing of sending troops outside the Western Hemisphere, nor did it in- clude the War Department's sug- gestion of a Congressional declared national emergency. The Defense Front' On the defense front, three devel- opments were outstanding last week: Leon Henderson's production cur- tailment predictions, the country- wide aluminum drive and the com- pleting of the draft for a property seizure bill. Henderson, early in the week, or- dered a tentative reduction in the production of automobiles of 50 per- cent, a complete surprise to the OPM, which had counted on a 20 percent cut. Friction developed, and by the end of the week a showdown before the President concerning the overlapping functions of Knudson's OPM and Henderson's OPACS ap- peared inevitable. Question was, does Henderson have the necessary authority to put through his projects? Answer will be as Congress and the President see it; probably no. With the opening of the aluminum drive, pots, pans and cocktail shakers appeared from kitchens all over the country to add to growing piles in Meantime news came from London that a Soviet military mission was on its way here to discuss U.S. aid to Russia. Tax Rise Ahead The House will consider this week a defense tax l bill completed last week by the Ways and Means Com- mittee after three months of writing. The measure calls for a revenue of three and a half billion dollars plus, some 29 million above the fig- ure set last April by Secretary of the Treasury Morgenthau. It would be the greatest increase in taxes in the nation's history. The Committee approved a higher excess profits levy on corporations, a surtax on individual incomes, an additional surtax on corporation in- comes and increases in estate and gift taxes. In addition, if the bill passes, ex- cise taxes will be imposed on such items as soft drinks, club dues, auto- mobiles, radios, . phonographs, rec- ords, jewelry, furs, toilet prepara- tions, coin-operated devices and bowling alleys. In The Dog House Senator Wheeler remained in the dog house last week as Secretary of War Stimson and the President both expressed their disapproval of his propaganda tactics. Stimson accused Wheeler of "com- ing very near the, line of subversive activities against the United States, if not treason." This was brought on by Wheeler's sending cards urging opponents of the interventionists to write to the President and Congress- men urging them to keep the coun- try out of war. Cnm'.a nf tho a n . .n ahma aa A A ,'.noai I odds with Germany, the name was it in honor of Lenin in 1924. It thus changed to Petrograd because Peter becomes significant that present Ger- The Great was descended from a Ger- man communiques refer to the city as man family. The Bolsheviks renamed St. Petersburg. Nazis Behind Schedule By KIRKE L. SIMPSON It is much too soon to conclude that Hitler's big parade to the East has definitely bogged down in mud and blood in western Russia. There can be no doubt that the Nazi propa- Yet German propagandists empha- sized that six-week schedule and as the last week of it opens, it is glar- ingly obvious that the Germans have very badly miscalculated some- where. Probably it was the techni-