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Weather
,ig
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Official Publication Of The Summer Session
~iit
Editorial
Eight Hopes
For The Future .
Cloudy; Showers
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VOL. I. No. 44
ANN ARBOR, MICHIGAN THURSDAY, AUGUST 21, 1941
Z-323
PRICE FIVE CENTS
Britain Says
Stand In East
To Stay Firm
New Trade Arrangements
Do Not Mean Retreat,
London Report Claims
Defense Measures
Taken In Far East
(By The Associfated Press)
LONDON, Aug. 20.-Newspaper
warnings that Britain's newly-dis-
closed arrangements for possible
traded with Japan might be considered
appeasement brought hurried insis-
tence from authoritative quarters to-
night that the government was not
retreating in the least from its stand
against aggression in the Far East.
Recalling Foreign Secretary An-
thony Eden's recent declaration that
kid glove diplomacy was in the dis-
card, these sources said Britain was
"standing absolutely in line with the
United States and Netherlands gov-
ernments and not receding a single
inch from the stand taken when Jap-
anese assets were frozen."
At the same time, these sources
said that while Britain had given
Thailand (Siam) no specific assur-
ance's of military aid if its indepen-
dence should be threatened, "that
does not mean we are not ready to
take strong steps against aggression."
They intimated the absence of spe-
-cific guarantees to Thailand, where
Japan is reported seeking military,
and economic aadvantages, was due
mainly to Thailand's failure to re-
quest such pledges..
'They said any fu'rthei moves by
Japan twould be regarded as " ex-
tremely serious" and that Britain al-
ready had taken adequate defense
-metsures in the Far East.
In Tokyo two Japanese organs
tpok somewhat divergent views of the
Far Eastei'n situation.
The Domei News Agency said a cri-
sis was being "feverishly wrought up.
by Britain" and that "British author-
ities now are desperately engaged in
maintaining the rights.and. interests
of Thailand in view of the Thai geo-
graphical position as Britain's fore-
most outpost in southeastern Asia."
The Agency accused Britain of ac-
tively "working up another dispute,
through either intimidation or ap-
peasement of Thailand, thereby to
direct American attention to Thai-
land."
Crisis Blamed
OnNipponese
Tokyo Can Ease Tension,
Australian Head Says
To Lend Soviet Money
WASHINGTON, Aug 20. -(p)-
Jesse Jones, Federal Loan Adminis-
trator, said today he was prepared to
lend money to Russia to finance war
supply purchases in this country.
Jones said a loan to Russia was
more likely than Lease-Lend aid,
once Russia runs out of cash to pay
for purchases. He said he did not
know how long the Soviets' cash
would last.
"If the Administration policy is to
tielp Russia and she is unable to -pay
,ash," Jones said, "I think we (the,
Federal Loan Agency which includes
the Reconstruction Finance Corpora-
tion), can find some way to help.
"I think it would be a loan, rather
than ,Lend-Lease."
Banquet Today
Will Highlight
Hopkins "Talk
Formal Dinner Will Honor
L~tin-Amnerican Group;
Invitations Are Sent Out.
Russians Launch Counter-Attacks;
Germans Claim VictoryNear Gomel
.---o 100
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TOLVAJARVI
SORTAVALA e9
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TA L L I NN~~C H E R E P VE TS
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PEtP $ TA RAYA
RSSA
R. MO SCOW
Detroit AFL Union
Rejects Proposals
In D. So.R Dispute
Oebbels Sees
Peril In Event
Of Soviet Win
MADRID, Aug. 20-AP)-The news-
paper Informaciones tonight quoted
German Propaganda Minister Joseph
Goebbels as declaring Germany re-
alizes the war is a question of "her
life and death anid if it, is lost she
will be broken up and destroyed."
In an interview granted the paper's
special correspondent, Alfredo Mar-
querie, Goebbels said that after the
"triumph of the German people, Ger-
many will occupy in the world the
ank of world power belonging to
her."
He said England "will pay dearly
for her nocturnal attacks on the Ger-
m'an civil population but the war
against Russia is the prisiary con-
dition to the final struggle against
England."A
President Roosevelt's "interven-
tionist position," Goebbelswas quoted
as saying, "exposes the Hispano-
American danger of being "colonized"
by the United States.
Oil Shorta ge
Nears Acute'
Stage In East
Rserve Stocks No More
Than 10-Day Supply,I
:Federal Report Says
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Dr. Louis A Hopkins, Director of
the Summer Session, will address the
students of the Latin-American Sum-
rner Session of the International Cen-
ter, opening the program after a
farewell banquet to be given for the
group by the University at 7 p.m. to-
day in the Union.
A formal affair, the dinner will
honor the Ecuadorians, Chileans and
Venezuelans who have been studying
on campus this summer under the
auspices of the State Department in,
Washington and the Grace Line.
Short talks will be given for the
Latin Americans by German Harn-
acker and Maria Larrain de Vergara
of Chile, Wilson Cordova and Olga de
Andrade Marin of Ecuador and Rob-
erto M. Henriques and Solita Gon-
zales Rincones of Venezuela.
A gift from the group will be pre-
sented the University by Miguel Al-
bornoz of Ecuador and will be accep-
ted foi' the Umiversity by Prof. J. Ral-
eigh Neson, Director of the Inter-
nationa Center.
Certificates that each member of
the group has studied at the Univer-
sity of Michigan will be presented
the Latin-Americans by Dean of Stu-
dents Joseph A. lBursley. Toast-
master for the affair is to be Prof.
Hayward Keniston, chairman of the
Romance languages department.
Invitations for the dinner have
been sent to the Regents of the Uni-
versity, President Alexander G. Ruth-
ven, the members of the Committee
in charge of the Latin-American
Summer Session, the deans of the
various schools and colleges in which
the group studied, the various fac-
ulty members who participated in the
instruction and the staff and mem-
bers of the English Language Center.
'Flying Tanks':
MOSOW, Thursday, Aug. 21. -
WP)-The Russians reported today
air-borne tanks laden with Red Army
infantrymen landed deep within the
German lines and dealt a slashing
blow in a continui.g series of coun-
ter-attacks. while a similar Nazi
strategem was crushed by Soviet
"exterminator" squads.
Red Star, the *Soviet Army news-
paper, said these Russian counter-
attacks on the central front already
had broken three German defense
lines and recaptured five population
centers, the flying tank troopers and
foot soldiers sailing down to decide
the issue at the third German line.
The Soviet Information Bureau.
while ignoring this account, said -the
Germans landed large :Pardchute
-forces and three tankettes behind
the Russian lines at an undisclosed
place, but that the whole party was
smashed.
The communique listed the major
battle areas as Novgorod, Kingisepp
and Staraya Russia, all in the Lenin-
grad defense zone from the Estonian
border to the Lake Ilmen region
about 140 miles south of Leningrad;
Gomel, in the central zone where Red
Star told of success; and around
Odessa, the big Ukraine port on the
Black Sea in the sector where the
Germans have made their deepest
gains.
The Navy paper, Red Fleet, said
also the Hango base dominating the
entrance ,to the Baltic Sea was stav-
ing off repeated German-Finnish at-
tacks and'had made counter-raids
capturing islands surrounding that
southwestern tip of Finland.
A Finnish-German column from
the north came within 95 miles of
Leningrad while another circled
east of Lake Ladoga menacing the.
Stalin Canal and rail lines. A
southern thrust, sweeping both
sides of Lake Peipus, pressed to
within 75 miles of the city. Rus-
sians admitted giving up Kingi.
sepp. Another Nazi drive was
reported at Staraya Russia, en-
dangering the Leningrad-Moscow
railroad.
Envoy .denies
U. S. Charges
Against, Vichy.
French Amba sador Says
No New Military Step
Planned By Petain
WASHINGTON, Aug. 20.- (Pj)-
Contending the Vichy government
had been unjustly accused of plan-
ning to surrender the fleet and At-
lantic naval bases to Germany, Gas-
ton Henry-Haye, French Ambassa-
dor, sought today to repair the
strained relations with the United
States resulting from new evidence
of Franco-German collaboration.
What success he had was not im-
mediately apparent, for Secretary of
State Hull declined to comment on
their conference. It was believed,
however, the Ambassador was told
that future Franco-American rela-
tions depended upon the acts of the
Vichy government in carrying out
its collaboration decisions.
Henry-Haye said he called on his
own initiative to give Hull an explan-
ation of Chief of State Petain's
speech last week in which the aged
marshal spoke of collaboration with
Germany as "a long term labor" and
said the French must turn them-
selves "toward broad perspectives
which can :open up a reconciled con-
tinent."
In telling newsmen of his confer-
ence with Hull, the ambassad* as-
serted there was nothing in the Pe-
tain address to justify an assumption
that "we intend to surrender the
fleet or take new military steps."
France bytnecessity, he said, had
to do some things which might not
entirely please the United States.
But he added that the leaders of
France were as good Frenchmen as
could be found anywhere and that
his own one desire was to :naintain
the long-existing friendly relations
with the United States."
He said he had shown Secretary
Hull a collection of American press
cartoons and articles which he de-
scribed as "insulting" to Petain.
'Crushing Defeat':
BERLIN, Aug. 20.--(P)-A crush-
ing defeat of the Russians around
Gomel on the central front with de-
struction or capture of parts of 25
Red Army divisions and two brigades
of air-borne troops, running to a to-
tal of 78,000 prisoners, was reported
late tonight in a special communique
from Adolf Hitler's field headquar-
ters.
While earlier accounts from the
front pictured the Red Army as near
catastrophe in a bitter battle in the
Ukraine for the bridgeheads of the
lower Dnieper, the spotlight sudden-
ly was shifted to the previously-ig-
nored central sector 'with this brief
announcement:
"In the area around and north of
Gomel, a battle has takeg place
which ended in a crushing defeat
for the Soviet Army.
17 Divisions Destroyed
"Part of seventeen infantry divi-
sions, one motorized, two tank and
five cavalry divisions as well as two
Brigades of troops landed from the
air were defeated, destroyed or taken
prisoner.
"Seventy-eight thousand prison-
ers, 144 tanks, 700 guns and two arm-
ored trains fell into our hands."
(Mention of air-borne troops left
little doubt that this was a Russian
counter-attack and was the "same
which the Soviet Army newspaper
Red Star a few hours earlier reported
had thrown the Nazi invaders out of
three defense lines and five towns
and still was continuing after three
days).
Prisoners Taken
Gomel is about 170 miles south of
Smolenk and 140 miles north of
Kiev, capital of the Ukraine.
In addition to the 78,000 captives
claimed at Gomel, German military
quarters 'said 330,000 Russians had
been taken prisoner thus far in the
Ukraine.
In that southern ,sector of deepest
German penetration, the Russians
were said to have counter-attacked
with large tank formations to re-
lieve the German pressure.
WASHINGTON, Aug. 20.-(P)-
Federal authorities reported todayK
the eastern oil shortage had finally;
reached the acute stage, that reserve
stocks had diminished to a ten-day
supply and that the situation was
"perilous."
Ralph K. Davies, Deputy Petroleum
Co-ordinator, said stocks dropped
893,000 barrels last week, as the di-
version of tankers to the British ser-
vice made its consequences apparent.
Davies hinted more drastic mea-
sures than the present limited ration-
ing might be necessary. He also de-
nounced as "near-sighted prophets"
those who called the shortage
"phony."
"We must conserve gasoline stocks
now to avoid a drastic shortage this
winter when our tankers must be
used to haul fuel oils unless our peo-
le are to be left to freeze and our
defense industry shut down for lack
of power," he said.
Gasoline in storage in the eastern
area last week totaled 20,476,000 bar-
rels, he said, of Which about 14,000,-
000 were unavailable for use because
they were at the bottom of tanks,
filled with sludge, or in process of
refining. The remainder, 6,476,000
barrels, constitute only a ten-day
supply.
effries Threatens To Use
'Might Of Government'
To End Tieup In City
Uliee Settlement
Plans Are Refused
DETROIT, Aug. 20.-(P)-A juris-
ictional strike halted all street car
nd bus service in Detroit today, and
eaders of the striking American Fed-
ration of Labor union rejected to-
light three proposals for a resump-
ion of service.
The rejection came in the face of
4 threat by youthful Mayor Edward
F. Jeffries to "call upon the might of
overnment" to end the tieup.
Half a million factory, business and
>ffice workers hitchhiked or taxied to
ork this morning. Many were caught
mawares by the 4 a.m. tieup.
Thousands were late at their jobs.
)etroit's huge factories, many of
hem busy on defense orders, started
perations with short staffs. The
Iudson Motor Car Co. closed its main
nd body plants, making 10,000 idle.
.n :additional 5,000' WPA workers
ailed to report at public works pro-
ects.
'Can't Run City'
To leaders of the AFL strikers who
iemanded that the city cease all
lealings with a competing Congress
f Industrial Organizations group,
layor Jeffries said, "You can't run
he city of ;Detroit."
He proposed a return to work pend-
ng the outcome of conferences; that
he dispute be submitted to arbitra-
ion, and that a system-wide employe
lection be held to settle rival mem-
ership claims.
"We can not give in," replied a rep9
esentative of the Amalgamated As-
sociation of Street Electric Railway
nd Motor. Coach Operators Union
(AFL).
Outside the hotel where the mayor
and AFL leaders wrangled through-
>ut the day, pickets from the state,
ounty and Municipal Workers Union
(CIO) paraded, demanding they be
permitted to operate the street cars
and buses. Their demand was re-
jected by ci4y officials, who said no
attempt to operate would be made
for fear of vlolence.
Workers Depend On System
In barns, garages and parking lots
of the Department of Street Railways
stood 1,000 street cars and 1,650 buses
which have been averaging 1,200,000
fares daily. Fred A. Nolan, DSR
manager, said some 400,000 workers
"who we believe constitute about half
the working population of the city"
depend on the system for transpor-
tation.
Both CIO and AFL unions claim a
majority among the 4,000 DSR em-
ployes. Department records indicated
more than 3,000 were AFL members
/nd about 800 CIO members. CIO
leaders recently claimed to have
made°inroads on the AFL member-
ship.
The Amalgamated strikers de-
manded exclusive bargaining rights,
exclusive use of bulletin boards and
exclusive privilege of a check-off of
union dues.
This the city refused to grant.
Mayor Jeffries said the municipal
;overnment had to recognize minor-
ity rights.
CIO Favorites'
AFL spokesmen charged, and the
mayor denied, that Jeffries exhibited
"CIO favorites" by refusing to accede
to AFL demands. Leaders of the CIO
claimed the strike could have been
avoided had Jeffries and the DSR
management agreed to a recent CI
request for an election among main-
tenance workers in the transporta-
tion system.
Mayor Jeffries told AFL workers
today the strike violated a state law
requiring a five-day "cooling off" pe-
riod after notice of intent to strike,
and a 30-day wait in strikes affecting
the public interest. Frank X. Martel,
president of the Detroit and Wayne
County Federation of Labor, denied
that the statute applied to a munici-
pally-owned system.
CANBERRA, Australia, Aug. 20.-
(P)--Japan has created the present
Far Eastern tension and "Japan has
the means of relief in her own
hands," Prime Minister Robert G.
Mepzies told-the House of Repre-
sentatives today in a special session.
Britain and the United States re-
gard Japanese occupation of French
Indo-China bases as unjustified ag-
gression "in a direction of vital con-
cern to both British and American
interests," he said..
Without mentioning Thailand di-
rectly, he warned Japan that Aus-
tralia regarded the British base of
Singapore (which is strategically
near Thailand) as a vital Australian
defense outpost and would not avoid
any sacrifice to maintain it.
"Though. there is a long history of
friendship between Japan and Aus-
tralia," he said, 'it is good even for
friends to talk plainly and honestly.
"The Japanese encirclement talk,
if intendedl to create the belief that
America, Great Britain, China and
the Dutch Empire are contemplating
an encircling military move against
Japan, is utterly .untrue.'
Carlson, Simpson
Will Give Recitals
Leroy Carlson, pianist, will offer
a recital at 4:15 p.m. today in the
Rackham Assembly Hall while Guy
Criss Simpson, organist, will present
a concert at 8:30 p.m. today in Hill
Auditorium.
Carlson will open his program with
"Chaconne" by Bach-Busoni which
will be followed by Debussy's "Por
le Piano," Rachmaninoff's "Varia-
tions -on a theme of Corelli" and
thr. c -r1tnnm byrOhnnin "7m-
War Pow-Wow:
Hopkins May Be Representative
At Joint Meeting With Russians
WASHINGTON.-.U)--Capitol Hill'
heard forecasts today that Harryx
Hopkins, lease-lend administrator,
probably would head the AmericanE
delegation to the joint meeting in
Moscow of United States and Britishf
officials with Premier Stalin of Rus-
sia.
At the same time, there were ap-
parently authentic reports that ar-
rangements had been made to fly
American-manufactured bombing and
fighting planes to the Soviets both
by way of Siberia and over an exten-
sion of the newly-designated south
Atlantic ferry route to the British
forces in the MiddlehEast. m
The details of this arrangement,
said to involve transport and military
plane operations over both routes by
Pan-American airways, were expected
to be worked out finally in' the Mos-
cow conferences. Ani apportionment
of American military production to
Russia, particularly as to warplanes,
also was reported listed for discus-
sion.
A well informed legislator, who
asked that he remain anonymous,'
Knox Lauds Navy Morale
After Reviewing Sailors
rR.FAT T AXES_ T..Aug. 90,W./)
said he understood .the Russians had
prepared a chain of landing fields
across Siberia so that not only bomb-
ers but the relatively shorter-ranged
fighting planes could be flown to the
front.
Although the Russians were said
to be willing to assume the responsi-
bility of delivering the planes, this
legislator said it was likely that Pan-
American would be asked to estab-
lish a line similar to the route which
President Roosevelt disclosed Mon-
day would be set up to West Africa
and 'thence to the Mediterranean
area. This line also would be util-
ized, it was said, to take planes
through the Near East to Russia.
There seemed little disposition
among administration supporters,
meanwhile, to link the projected
Hopkins trip to Moscow with the pos-
sibly extension of lease-lend credits
to the Soviet.I
Remarking that Hopkins appeared
to be "better qualified than anyone
else" to undertake the task of deter-
mining Russia's need for supplies.
Senator Pepper (Dem.-Fla.) said it
was his understanding that the Sovi-
ets had the resources to finance cash
purchases for a long time to come.
All that might be needed, the Flor-
ida senator said, would be for thC
RFC to make dollar exchange avail-
Playing At War:
New War rGames Give Army Aid
In Streamlining National Guard!
WITH THE SECOND ARMY IN
ARKANSAS, Aug. 20.-(I)--The cur-
l rent war games in Arkansas and
Louisiana are helping the Army
streamlin;e its one-time National
Guard divisions into faster-moving,
more flexible fighting machines, high
ranking second army officers declared
today.
These bulky square divions, still
operating on their outdated 1918 pat-
tern for trench warfare when they
were inducted into federal service
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Local Contractors Bid
For Mackinac Project
LANSING, Aug. 20. -(AP)- The
State Highway Department, in an-
other step toward construction of a
$33,000,000 bridge across the Straits
the anti-tank forces to strategic de-
fensive bositions.
Observation aviation is being as
signed to each square division to serve
as eyes on the constant search for
enemy troops.
Infantry anti-tank companies, un-
der the present plan, will remain with
their regiments in the front line as
a delaying force against tank attack.
The artillery anti-tank battalions are
ander control of the commanding gen-
eral of the Army to make their move-
ment flexible enough to be shifted
in virtually any direction the enemy
armored force may strike.
Strauss Library Hour
To Star Swing Masters
Closing its programs for the sum-
mer, the Strauss Library Music Hour
of recorded masterworks will today
. ,
E
s
of Mackinac, opened bids today for
construction of a causeway on the
north shore of the Straits, designed
to become a unit of the bridge.
Johnson and Greene. of Whitmore
last winter, are rapliyoeing orgarn
ized to match the power and speed
of armored troops.
Lt. Gen. Ben Lear, Second Army
commander, pointed to the forming
of anti-tank battalions as the most
important step changing the organic
makeup of the divisions.
"We are having each division ap-
point an anti-tank officer, and each
Shah
On
Of Persia Calls
Armv For Sacrifice