I Weather ,ig Sibtigau Official Publication Of The Summer Session ~iit Editorial Eight Hopes For The Future . Cloudy; Showers -. i e I I 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 I MILESj TOLVAJARVI SORTAVALA e9 - HEEO~T TA L L I NN~~C H E R E P VE TS ". L A KE 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 i r t fff I t ,r ij c a G t C t t f i x 1 I k t t i c f 1 , 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 madeĀ°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 -anirl - -n'i.g'Am- t 3 , .) tII _! 1 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