3AY, AUGUST 3, 1941 THE MICHIGAN DAILY PA 4 The Russian Stalemate THE WEEK IN REVIEW New Defense Agency I FOREIGN ... De-Blitzed? On The Eastern Front: f411 Is Not So Quiet AT HOME... The EDB A new alphabetical combination the exception of Wallace. may name Germany's stalemate war against and to all, Russia continued amid propagandic week. confusion last week, but time and Intense events played heavily into the Soviet Brazil, fo leo underdog's hand. ties Thursd The past 10 days have, according settlement to most reports, been Russia's round. least the ba Red -defenders have launched heavy Argentine counter-offensives against Nazi blitz herself as t columns, holding Hitler's legions at to hemisp bay in most sectors, 'driving them nounced wa back in some. U.S. blackl German thrusts at Moscow, Lenin- controlled f grad and Kiev, meanwhile, were ap- rebuked G parently stopped like a hog in Mis- bassies forc souri mud; the Russian bear was not ganda. Wh to be conquered by a few thin rapier ture, will thrusts alone, problem for Fighting again was confined to three main sectors: Bessarabia, Len- ingrad and Smolensk, with the Mos- cow Road at Smolensk still carrying the brunt of attack and counter- attack. In the central area, German forces. were doing something unheard of in modern blitz war: they were report- edly "digging in" to stave off massive, heavily armored counter-assaults. Moscow repeatedly boasted that the Nazi drive had been completely shat- tered; Berlin communiques coun- tered with claims of more Red divi- sions annihilated, but even Ger- many's proud, boastful communiques tacitly admitted strong Russian coun- ter-offensives. The Red Army was putting on a violent, near-desperate drive, but there still remained ominous gaps in' the Moscow defense line; gaps through which Hitler may at any moment launch a lightning pincher movement. Through the smoke and propagan- dic din of battle, only one thing was certain: the longer Joe Stalin and Adolf batter each other, the better off will, be England and the U.S., come the final reckoning with fas- cism and communism. Though offi- cial Washington was throwing scent- ed orchids to Moscow, few believed that present relatipns were friendly for'other than immediate reasons. Largest gesture last week was Harry Hopkins' air hop to Moscow from' London. Most heralded plane flight since Hess, it, together with White House praise of Russian resistance, werc seen largely as morale boosters. Whatever the U.S. promised the Kremlin will be little more than a paper pledge; the defense effort and British aid have little to spare, with even fewer ships available for trans- port. hostilities earlier in the diplomatic pressure from ntine and the U.S. was fe- r the cessation of hostili- lay night. No boundary has been made, but at ttle has been moved from to the conference table. %, however, again showed the chief stumbling block here unity. First an- s a decision not to honor listing of alleged Axis- irms. Later, Buenos Aires erman and British em- disseminating war propa- at she will do in the fu- be a delicate diplomatic r Washington. -Karl Kessler From bomb-torn Chungking last week came news of the bombing by Japanese fliers of the United States gunboat *Tutuila: news that created a two-day crisis between Washing- ton and Tokyo. A 370-ton patrol boat, the Tutuila was anchored in Chungking's neutral harbor Wednesday when Japanese bombers attacked the town, was dam- aged slightly by a bomb in its hold. Demands immediately came from Washington for apologies, payment for damages, and on Thursday the incident, which many prognositica- tors had branded as the prelude to the United States' entry into the' Eastern conflagration, was smoothed over by Nippon's super-smooth re- grets, a promise to pay damages "in full." Acting in the absence of his chief, Cordell Hull, Acting Secretary of State Sumner Welles accepted offi- cial apologies of the Japanese gov- ernment after conference with Pres- ident Roosevelt Thursday, announced that the incident was "officially closed." Thus all seemed smoothed over be- tween Tokyo and Washington, ap- peasers were happy, until week's end, when President Roosevelt issued an executive order placing an embargo on shipments of aviation gasoline and refined oil to all nations except those in the Western Hemisphere, the Bri- tish Empire and "unoccupied terri- tories of other countries engaged in resisting aggression." No direct mention was made of Japan in the order, as in the order freezing Nipponese assets in this country earlier in the week. But be- neath the surface of the carefully worded order was but one thing: a direct blow at Tokyo, which too many .times had tread on the international toes of Washington. Earlier in the'week the little gignt had struck the lumbering midget when Tokyo responded to the order freezing Japan's assets in this coun- try by freezing American assets in the Land of the Rising Sun. Similar orders affecting Nipponese assets came from Britain, Canada, Dutch East Indies. At week's end all was not so quiet on the Eastern Front: Tokyo-Wash- ington relations were strained to the breaking point, with the United States nearer the Oriental conflict than ever before. -Bill Baker I . was added to the roster last week when President Roosevelt Thursday created the EDB-the Economic De- fense Board-and named Vice-Presi- dent Henry Agard Wallace to its head. A ministry of economic warfare directed primarily at the interna- tional aspects of the defense organi- zation, the Economic Defense Board holds complete power in its own field besides possessing a check on prac- tically any step any other Admin- istration agency might take. In addition to Wallace, the Board membership consists of the Secre- taries of State, War, Navy, Treasury, Commerce and Agriculture and the Attorney General, any of which, with E .. _ _' _ - - .. w..m vv asaw aaww, I JAPAN : > sr >-- : >''':" '>:;;._.;> :' . n..tz'::......::: 'SHANG H AI CHUNGKING & ...INGPO BURMA ROAD: China's lifeline becomes more vulnerable with .*;:. ": Japanese occupation of bases in o ;;_: .....::: ..............:::::.: . .,Y.; .; French Indo-China. BRITISH STRONGHOLD at Hong FOOCHOW > ; .Kong, though liable to blockade,. : ;offers bastion from which sub-: YUNNAN marines could wage war on japa- .'IA I ;_ ; ; "r nese flank.A .- CANT #..:*'~i"SWATOW (.Pa Cifi C JAPANESE FOOTHOLD AOKA SWATCANTONW tirij ,. gained in Hanoi, capital HONG ONG MANDALA of Indo-China, a year ago. \HN ON " 'HANO I HA PHONG Oea YH AIN "- -1 *otINVASION OF PHILIPPINES, sme mii- A"OO tary authorities estimate, would requre a force of more than half a million . THAILAND:CIna Lz ..: (Siam) Q9 ,:: . A"PHILIPPINE PATTERN FOR ATTACK: v . , CAMRANH~ Japan has long line of navalMALA >BA :" supply bases for maintaining anila to Pearl Harbor, 5481 11-x steadyflow of munitions and- o :. *-= " ;" war materials. AMERICAN SUPPLY ARTERY: This Gulf ... x f~ . ;'~r is the route ships follow to and from >? ' " : ""* AmericaLuncomfortably close to ap- OfAAAIGONISLANDS anese bases on Palau and Yap Islands. ofN .4--a ILNSAerc-nofotbycos oJp GREATEST BULWARK in defense of East Indies *.'- - United States) is heavily-garrisoned Singapore, one of wold'sMINDA greatest naval bases. It is a high hurdle in the SPRATLY I. path of any future Japanese push south . . .PALAU I - ; *JESSELTON :" PENANGORTH ~.i i -AABORNEO NINSULBRUNEMandate) AEDANA Celebes Sea rte RAKAN NLMAHERA Equator -- .: -- - - e . - -- - - - - -- ---- -~ ~~ :PADA BzRNEO ALKPAPAN .<;.. ". CELEBES+ SRICH OIL PRIZE: Japan could :i:;: , ?>-::FNEW PALEMBANG use a great portion of the 10,- >-"'% .. :4J GUINEA 000,000 tons of oil produced an- p 'A nually in the Dutch East Indies. 4B.t1"ei,. MACASS apua In BETOENG "tJaa ea BATAVIA anda Sea A n' rei'.I TOEBAN. OAGan;ERABAJA * Ocean /70-w' A IV 250 5o0 " f0 i : Potugl Miles (at Equator ML. ,Y) yAe, Yt .SBRDTH ' MAJOR JAPANESE MAJOR BRITISH BASE U. S., BR., DUTCH AIR ARMY AND D (- ASECONDARY BR., U. S. AND .I S.AVRABASESHNAPANESE ~\NDUTCH NAVAL BASES A..R., DTCNHA YM SECONDARY BR., U. S. AND AAPAESENAY DUTCH ARMY BASES A A AOIL OL OCCUPIED BY U.S~ BRITISH DUTCH .L APAN IN AIR AL cfelU)e LKU I4L MC l i:C H IN ESE; WAR?3}:{ . i*. li i:' : ::::'i :....:....::.:p{:i .C :: an alternate. Liason officers to keep in touch with the board were re- quested of all other important 'de- fense agencies. The purpose of the new board was expressed in the Executive order as the protecting and strengthening of "the international economic relations of the United States in the interest of national defense." The day before another appoint- ment of note was perpetrated when the Democratic steering 'committee of the Senate named Senator Con- nally of Texas to the chairmanship of the Senate Foreign Relations Com- mittee to succeed Senator George of Georgia, who is now head of the Finance Committee. Defense By-Products Price control and oil consumption were in the headlines last week as the main by-products of the defense effort. On Wednesday Roosevelt sent a special message to Congress warn- ing that "we face inflation unless we act decisively and without delay." He asked authority forthe establish- ment of price ceilings and a curb on excesses in installment credit. Congress appeared willing to grant the request, although not to delegate the authority directly to the Presi- dent. Fear was that the President, in turn, would name Leon Hender- son, who .is not well liked in Con- gress. A 7 p.m. curfew for gasoline fill- ing stations in, the 13 Atlantic sea- board states beginning today was ordered last Thursday by Harold L. Ickes, Defense Petroleum Coordina- tor, declared necessary because of lack of transportation facilities to carry oil to the east. Friday the President ordered the end of all exportation of oil outside the Western Hemisphere, the Bri- tish Empire and unoccupied terri- tories of other countries resisting ag- gression. Draft 'Compromise' C Japan Moves On Despite thinly-veiled British and U.S. threats, Japan last week con-. tinued to make preparations for a major move in the Far East, while Washington and London kept a watchful eye on Indo-China.1 Following preliminaries of a fort- night ago, Tokyo last week began loading troops and planes into Sai- gon. First, 14 transports and 13,000 men; then 30 more transports and untold quantities of men, materials. Most of these forces were being shifted to, the Malaya and Thailand borders, leaving little doubt as to Nipponese intentions. To the French military post at Cambodia on the Thailand (Siam) border went lorry after lorry, loaded to the hilt with grim-eyed orientals. Ominous was one Japanese offi- cial spokesman's statement that Nip- pon's forces would "cooperate with the French against any incidents or aggression." It took no trained ob- server to recognize that statement as a prelude to attack. From Thailand Japanese could cut readily intd China's most vital supply artery: the Burma Road. From In- do China to Singapore to the Dutch East Indies, to the Philippines- thence Asia for the Japanese. With the arrival in Saigon of Tok- yo's 100-man uniformed military mis- sion, Japanese control of the French colonywas assured. -Tokyo is going all-out; the outcome rests with the U.S. and British fleets, the effect of American economic pressure. Wings Over Europe In the RAF-Luftwaffe' air duel, Britain again last week held the up- per hand, with repeated raids on the invasion coast, German industrial centers and northern communica- tion lines accredited to British raid- ers. One lone American-built "flying fortress," London . claims, success- fully bombed the German potr of Emden, started several fires, returned unscathed. Secret of the raid's suc- cess layfn the fact that the U.S. ship was built to operate at sub-stratos- pheric levels, designed to bomb ac- curately from a heighth so great that the ship was not perceptible from the ground. In the Senate last week' various "compromise" amendements were suggested for the draft extension bill, all seeking to limit or regulate the length of the proposed additional service. There seems to be no doubt at this point but that the bill will pass. An informal poll of the Senate early last week ,showed a 2 to 1 proportion in favor. Anti-Administration forces, however, still are .seeking to gain any limitations on extra-service that they can. Administration compromise meas- ures are not satisfying foes, however, Thomas offered an 18 month limit for extension; Wheeler immediately de- manded it be out down to six. Meanwhile ,the armed forces of the Philippines have been national- ized by . Presid;ent Roosevelt for the "duration of the emergency." Maj.- Gen. Douglas MacArthur,' former Army Chief of Staff, was named to command the forces. Controversial Tax Mandatory joint tai returns for married couples held up the consid- eration of the defense revenue bill in the House last week until that body voted on Wednesday to take up the bill under a semi-closed rule per- mitting an outright vote on whether to delete the controversial section. General ,debate on the bill con- tinued until Friday, when the House adjourned. Tomorrow the bill will be corsidered for amendments, at which time the joint returns ques- tion will be brought up for final action. The bill, worth $3,529,200,000 in its present form, was first reported some days earlier by the Ways and Means committee, which said it was convinced that the country would pay the increased levies cheerfully be- cause of the imperative need of mak- ing these shores invulnerable to at- tack. Three proposed changes stiffening the composition of the bill were sub- mitted by President Roosevelt, but the House Ways and'Means Commit- tee turned down the request by a decisive majority. Wheeler Again Senator Wheeler continued to make headlines last week when, in reply to Secretary Stimson's charge of "near treason" he branded the latter "a deliberately cunning attempt to cre- ate the utterly false and spurious impression" that he had encouraged soldiers to resist draft extension at- tempts. Stimson's charge' came the week before when he learned some Army men had received "stay out of war" I ts OIL STORAGE BASINS FIELDS W BIREFINERIE5 ^'' "' CHINESE WAR FIELDS }:Y!IR{11" Frh. .. ...i.. Aug-i<} ::"r0'f:: ..... .:.,.:,:..::::::.:.::..:::::..t.....:.:........,....:..::::::: - - - - - - - - - - IN ALL the fabulous history of the Far East, nothing more fantastic orsinister has Occurred than the mid- summer threats exchanged by Japan and the United States. No diplomatic, economic or military maneuvers have been more intricate and threatening-and few have been more empty of real action. Yet be- hind the bluff and counter bluff of occupied Indo-China, denial of oil supplies, and frozen Japanese assets lie dangerous weapons ready for in- stant use. War is as far away as a mirage, and yet as close as steaming hot breath on your shoulder. *E* * oil. To the military expert, 700 miles is exactly the range of Japanese med- ium bombers, the only kind they pos- sessess in numbers sufficient to dent a good-sized cow pasture. This .means the Japanese are really 700 miles closer if they intend to blast a path through the Indies to- ward the oil and rubber and tin-but especially the oil-they need to fight a war. The move into Indo-China, in other words, appears preliminary and preparatory-getting ready for a drive toward greater stakes. * * * TOKYO has been notified that the Dutch, the British, and the they now hold a dagger poised over the heart of the Indies. You also have the Dutch and the British and the Americans building their ring around those islands-a deadly steel ring, insulating them against the Jap- anese dagger. * * * 0IL IS THE KEY to the whole sin- ister game. Reliable commercial oil statisticians in the United States report that Ja- pan has been buying from the Dutch and the Americans about 5,500,000 metric tons of oil a year. Japan's minimum civil needs are some 3,500,- 000 tons. She is storing away a part meet Japan's possible war needs with a little to spare. * * * THERE IS, of course, oil in other parts of the East Indies. In 1940, reliable experts calculate, Sarawak produced 168,000 tons, British North Borneo, 764,000. The experts can't put their fingers on exactly what happens to this oil,I but presumably it is stored around Singapore. The British fleet in the Far East tries as far as possible to use oil at hand. It buys from the Dutch and the United States. It gets about 1,000,000 tons of oil a year from Bur- desperate Japan, and they, therefore, are forging their ring of steel. * * * THAT ring is half shoreline and half sea-line. The shoreline is guarded by some 500,000 British, Aus- tralian, Dutch and American soldiers. The American army of the Philippines guards the northern spearhead based on Manila. The Dutch and the Bri- tish take the southeastern wing of the islands based on Bandoeng in Java, and Brueni and Tarakan in Borneo. The Dutch and the British also take the western reaches of the area, basing on Singapore, Medan in Sumatra, and Penang (Georgetown)