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CHINA MAIL

FIRST NEWSPAPER IN THE FAR EAST. ESTABLISHED 1845.

No. 33,011..

TUESDAY, JULY 29, 1941

Price: 10 Cts.

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SPEEDY FLARE-UP UNLIKELY American Estimate Of Situation

TOKYO TO GO SLOW

Reuter's Tokyo corres- pondent says that with the freezing action by the N.E.I., Japan now faces complete isolation econo- mically, except in Japan-| ese dominated areas of the Asiatic Continent.

It is expected in Tokyo that this situation will be borne silently for the present, but un explosion will be imminent as soon as the adverse effects are noticeable.

Meanwhile, the present ten- dency will be to be as lenient as possible, according to the policy followed by others. Reuter.

GERMAN CONSUL ARRESTED IN BOLIVIA

[SPECIAL TO "CHINA MAIL"]

The German Consul, Herr Luftsch, and his wife, have been arrest- ed in Bolivia, accord- ing to a message from Buenos Aires. The ar- rests are reported to be in connection with the Nazi plot.-Inter-

national News Service.

EXPERT ESTIMATE OF ENORMOUS GERMAN LOSSES

(SPECIAL TO "CHINA_MAIL")

THE GERMANS have lost at least 6,000 tanks and armoured cars and at least 700,000 men in the Russian.campaign already, says a well-informed foreign military expert, who has arrived in Ankara from Moscow.

Direction Of New Thrust May Be Altered

(SPECIAL TO "CHINA MAIL")

ALTHOUGH THE RATIFICATION OF THE JAPANESE AGREEMENT WITH INDO-CHINA BY THE PRIVY COUNCIL IN TOKYO YESTERDAY, IN THE PRESENCE OF THE EMPEROR HIROHITO, IS A POINTER THE SERIOUS SIGNIFICANCE OF WHICH IS NOT OVERLOOKED, GENERAL OPINION IN WELL- INFORMED WASHINGTON QUARTERS IS THAT THE PROS- PECTS OF AN EARLY FLARE-UP IN THE FAR EAST HAS DIMINISHED.

NAMED

Official quarters believe that the econo- mic blockade of Japan by the United States, H.K. FIRMS the British Empire and the Netherlands East Indies, virtually isolating her economically, taken in conjunction with the defence mea- sures in the Pacific, will delay any further in Tokyo announced to-day the Japanese southward thrust for at least a year.

The Japanese Finance Ministry

names of 43 British firms as well as three Hong Kong con- cerns operating in Japan whose transactions are controlled under

which became effective yester- day.

Rather than risk the virtual certainty of war against the combined strength of Britain, the provisions of the Freezing Act the United States and the N.E.I., observers in Washington predict that the direction of any further Japanese thrust will be towards China's back door, the Burma Road, or the Dunlop Rubber Company, Messrs. Siberian Maritime Provinces.

one

An attack in more than direction is deemed impracticable. In Washington's view, an at- tack on Singapore, the N.E.I. or the Philippines is very unlike- ly, despite Japan's dependence on outside sources for tin, rub- ber, oil and cotton.

"I can state absolutely," he said, "that - Russian resistance has upset all German cal-

culations, and thrown all their plans out of STRAIN gear,"

International News Service.

Oil

Months ago, he stated, the Ger- than Germany can bring to bear." man High Command ordered an assessment of the possibilities of a Russian Invasion and the cam- paign was based upon the con- clusion that the Germans could break through decisively in three weeks, and that the whole cam- paign would take a maximum of six weeks.

would not be in those generals' ́ ́ shoes to-day," said the expert, who added that he now.believes that the Russians cliff have the greater armoured force, and that for the Germans

the campaign"

Supply

Question

IT IS RECOGNISED, NEVER- THELESS, THAT AS THE OF THE ECONOMIC BLOCKADE IS INCREASINGLY FELT, IT WILL BE NECESSARY TO WATCH CAREFULLY FOR SIGNS OF AN EXPLOSION.

Japan's Answer

Japan, meantime, has settled down to engage in economic war with the Democracies, Mr. Ogura, the Finance Minister, having declared that Japanese policies will be guided by the actions of Britain and the American Gov

(Continued on Page :16) (g)

the degree that they are forced by American action, fin

IT IS THE OPINION THAT OIL SUPPLIES TO JAPAN

LESS THE JAPANESE TAKE A

the time element is beginning} (SPECIAL TO "CHINA MAIL") WILL NOT BE ENTIRELY CUT to take on the shape of a nightmara - with Smolensk the Trading in silk futures OFF FOR THE PRESENT UN- most important key position in has been suspended SONĮ STEP. "AGAINST THE NETHER- Situation In Hand the New York commodity LANDS EAST INDIES.INTER As long as the Russians were market, as a result of the Capable of counter-attacks, such freezing order against THE JAPANESE REPORT

Japanese Report

the lasts two days, it is certain Japan.

ds the Germans have admitted in

NATIONAL NEWS SERVICE.

FROM BATAVIA THAT THE that the Russian Command still Washington officials who are in N.E.I. GOVERNMENT HAS AN- has the situation in hand and charge of the handling of Amer- NOUNCED THE UNILATERAL that morale is good. ican-Japanese relations decline ABROGATION OF THE PETRO- Russia to day is equally well to comment on the announce LEUM AGREEMENT BETWEEN equipped as Germany with artil- ment that Tokyo will enforce the THE NETHERLANDS ALAND ler mall arms and transport. freezing order against United JAPAN REACHED LAST YEAR. cindy King I'muster at forep" bigger. States firma and nationals only in REUTER.

Thèse include the Rising Sun Petroleumh Company, Messrs. Butterfield and Swire, Messrs.

Mackinnon Mackenzie, and Messrs. Lane Crawford, Limited, -Reuter.

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