WHAT IL DUCE IS GAMBLING AGAINST

MORE RAIDS ON ITALIAN BASES

FROM PAGE ONE

pected of Italian sympathics are being closely watched..

Jaffa and Tel-n-Viv hove beeri de- clvf- clared protected areas. No

LONDON, June 12 (Reuter).lans will be allowed to approach The following are some facts these areas without special permis- from an authoritative source

of Italy:

sion.

the

Adon Calm And Roady concerning the economic position ADEN, June 12 (Reuter)Adea 1 calm and prepared. The Governor (1) 75 per cent of Italy's whole of the Colony has pakla tribute to Fifty the loyalty and co-operation of all import trades are sca-corried.

of the Mediter-sectiona

populace. five per cent, enters

Alexandria Raid Alarm ran in via Gibraltar and six per cent. via Juez;

ALEXANDRIA, June 12 (Router). was sounded The air raid alarm this evening. The "All Clear" was

minutes given ten

Inspiring Message LONDON, June 12 (Reuter)-Lord Lloyd, Secretary of State for the Colonies, kas sent the nesange to the Governors of Kenya, Somaliland, Malta, Aden, Cyprus and Gibraltar:

(2) Kallan self-sufficiency is far below Germany's. While the possibly will be able to feed herself for year, she is gravely deficient in essential raw materials such as from, coal, coke, petroleum, timber, copper,

tin and rubber;

Dangerous Scarcity

(3) Even supposing that the Allies are forced temporarily to abandon the Mediterranean, Italy and Germany would find themselves dangerously short of nickel, tn, melybdenum, cobalt, tungsten, copper, rubber textiles and Colonial produco;

(4) With the Allies in control of the Mediterranean, Italy's position is even more serious. The only external supplies available would be from the exportable surplus of domestle pro- duce in Central Europe, the Balkans, Switzerland and Scandinavia, Russla in all of which she must

compote with both for

for materials and trans- portation. (For example, there are

later.

following

"As the result of the latest deve lopments in the war situation, the territory for which you are respon- ble has been brought within the netive military operations zone of and is now, or may be called upon, to share directly in the dangers and hardships of modern war.

that these confident are dongers and hardships will be faced with pride and determination, and I hasten to assure you of my conviction that the people of your territory will display in these momentous times the courage and resolution characteristic Inaumclent tank-waggons to Carry of the peoples of the British Empire, petroleum both to Italy and Germany and that the day will come when we from Rumania). The Italian forces shall look back proudly and with in East Africa, moreover, would have thankfulness to the part they have to subsist on the atocics already played in achieving victory over the

King's enemies." accumulated;

Bacomes Liability

(5) Once her very limited accu- mulation of war stocks is consumed,

Italy thus becomes on

increasing

FAMOUS POLISH

Liability to Germany and a compell- SUBMARINE LOST

tor for the same available resources, including Germany's own

stocks.

Morcover, the considerable gap of the

Tale hitherto constituted

by

FROM PAGE ONE

Orzo! Escapes.

acting as a channel for Ger-nounced that she had exceeded her many's import and export trade with time limit allowed by International the outside world is closed.

Italy Law and she was placed under arrest. has no export surplus for Germany except possibly fruit and vegetables. There will thus be a substantial loss In their combined economic potential as soon as Italy has consumed her stocks of strategic raw materials and Anished goods.

Thursday,

HONGKONG TELEGRAPH

FOUND HE WAS "PROTECTED"!

"protection."

SITUATION ANALYSED

BIRTHDAY PARADE

FROM. PAGE ONE

Hennessy Road were H E. Admiral

Sir Percy Noble, Commander-in-

June 13, 1940.

U.S. LINER

WAS HELD

BY U-BOAT

Chlof, H. E. Major-General NAZI ADMISSION

Grasett, General Officer Commanding, Group Captain H. M, K. Brown,

LONDON, June 12 (Reuter). RAF, Its Honour, Sir A. D. A.There have been two amazing MacGregor, Chief Justice, members developments as a result of the of the Executive and Legislative stopping of the American re Councils and prominent European

Washington by a and Chinese residents. Also present fugee tiner

submarine off Portugal on Mon- were members of the Consular body. 100 A smart Guard of Honour of

day, men from the Royal Scots was drawn

Berlin It is offelally admitted In that the submarine was a German up when the Officer Administering the Government attended by his

Their explanation is that the U-boat. C. Fay, aclved

German Government had not Police A.D.C., Mr. B. C.

been at the junction of Hennessy Road and

told that the Washington was calling Luard Road at 8.15 a.m., escorted by

at Galway (to which she was pro- a motor cycle detachment from the

ceeding from Elsbon when stopped).

This statement has now been sup- Hongkong Volunteer Defence Corps. On His Excellency's arrival the

plemented. by the German-Radio, Union Jack was broken at the mast- head and the Guard of Honour gave the Royal Salute, during which the National Anthem was played by the massed regimental bands of the 2nd Battalion, The Royal Scots, the 1st

Rifes and 1st

Battalion, The Middlesex Regiment, tho 5/6th Rajputana Kumaon Rifles under the direction of Bandmaster H. Jordan,

The Royal Standard was then broken and the Union Jack lowered FJ the Guard came to the "Present" His Excellency ther inspected the Guard accompanied by the General Omeer Commanding afterwards toking up his position on the dais for the march past,

The March Past

states that the U-Boat com- ander thought at first that the ship was British, and adds that it is in- correct to say that the United States Government had notified all govern- ments concerned that the ship returning home via Ireland.

was

The German Government did not learn until this afternoon that the chip was calling at an Irish port; in addition to Bordeaux and Lisbon, said Berlin-Radio.

It is pointed out in London that at 11.15 p.m. British Standard Time on June 7. Hamburg-Radio stated that the Washington would call at an Irish

Ga.m. port at

on Monday. The official German-Radio also said that the Washington was calling at un Irish

port.

German

"But this afternoon, the Radio, with unparalleled impudence, Is asking the world to believe that the German Government did not know

what the rest of the world knew for daya, and what its own radio stations had known for days.

U-BOAT STOPPED WASHINGTON

Open Admission By

Led by Major-General Graselt, the Awakened by roar

of air- Omeer Commanding, the garricon units began the march pust the planes, this resident of Copen-official stand at 8.25 am, while the hagen, Denmark, rushed to street massed regimental bands played at in pajamas and slippers. There the saluting base.

Troops taking part included: he picked up Nazi pamphlot

Approximately 100 ratings from the dropped from plane, explaining

three batteries (125 Royal Navy; men) 8th. Heavy Rest, RA; three batteries (125 men) 12th. Heavy Regt. R.A three batteries (156 men) 5th. A.A. Regt, F.A.; 1st. H.K. Regt., HKSRA. (250 men); two compan les (250

Fortress Engineers; men) HK. Signal Company (50 men); 2nd. (300 men) three companies

four Balt. Royal Scots;

Coment.

LONDON, Jun 12 (Reuter).The (400 men) 1st. Middlesex

ocial German wireless to-day ad- four companies (400 men) 5/6th: mpanies Rifles; three companies Rajputana

mitted that it was a German U-boat (300 men) 1st. Kumaon Rifles; which stopped the American refugee Mule Corps, (100 men); liner, Washington, off the north-west Honment H.K.V.D.C. (000 men);

Const

of Portugal yesterday. The men) Royal Air detachment (50

announcer, explaining the Incident, said the German U-boat Force.

After the Parade the Officer Ad-sighted a stenzner proceeding north- ministering the Government received ward. The U-bout commander was Consular body at under the impression that she was a members of the

Greck vessel and therefore signalled Government House.

her to stop.

What Italy's Entry May Portend

Breech blocks, charts and small arme were removed, and prepara- tions were made to take off the torpe-

LONDON, June 12 (Reuter). Two guards were put on the docs. vessel, but the crew had made up-It is more than likely that their minds to escape. A Polish Can Only Last Months

officer severed the wire holsting the Italy entered the war at a time LONDON, June 12 (Reuter) torpedoes out of the submarine, while when the Germans were putting Economie experts in London point the captairs got busy with a hacksaw. every effort into the battle for out that Italy's capacity to endure severing all hawsers holding the sub- Paris, rather because Hitler the war must be reckoned in terms marine, except one. of months rather than years,

At midnight, two burley sallars requested reinforcements than Sixty-one per cent. of Italy's pre-bundled the guards into the sub-that Mussolini had decided to war trade lay outside the Mediter-marine. ranean and now It will be lost. The sound of the forward capstan The greater part of her essential gave them away and the destroyers war materials has also come from la the harbour turned their search- beyond the Mediterranean and this lights on the Orzel,

her with rifle fire. will be compicely cut off.

Mussolint is known to have been laying in stocks of war materials since lost September, but owing to Italy's bad credit position, these stocks cannot be large enough to tido the country over more than u few months of warfare."

Precarious Position

and peppered

first

Runs Aground The submarine made for the en- trance of the harbour where she ran ground. Despite rifle fire the crew managed to get out. They landed the guards on a small island, and sent out a radio that they were safe.

Then for a fortnight-the-submarine. As for as many of Italy's lost im- ports are concerned, she will-bo-neruised around, chiefly in shallow flability rather than in asset to Ger- waters, in which the vessel frequent- ly grounded. On the 38th day, when Italian water supplies were running low, the More than 80 per cent. of petrol imports come from beyond the crew decided to reach England,

In the North Sea, their radio went Mediterranean and the bulk of the remainder from Rumania. Clearly out of action so that they could put thus recognition signals, latter source at the expense of Ger- placing themselves at the mercy of

bath

anti- German British and submarine craft,

many.

Italy cannot

many.

obtain more

rio from the out

For coal, Italy will have to rely on German supplies and 40 per cent. of these have lately been carried over the Frankfurt-Basle railway, which is very vulnerable to military action. A great deal of Ilaly's pre-war food supplies were also imported from countries outside the Mediterranean and Italy can only replace these by competing in the Balkans with her ally, who is already badly hit by the blockade,

In Skagerrak Action However, the submarine managed to get a faint message through to a British shore station, and a British destroyer went out and escorted the submarine into harbour after 44 days of exciting adventures.

Later the Orzel, in company with other units of the Polish Navy, be- came affiliated with the British Navy, und she took part in the great naval The goods Britain has normally im-action in the Skagerrak and Katte- ported from Italy are stated to be got, where she sank several Nazi relatively unimportant and can be transports. obtained without difficulty from other

countries.

Imports Cut Off

SPECIAL TO THE "TELEGRAPH" LONDON, June 13 (UP).-Since her entry into the war as Germany's ally, eighty per cent. of Italy's Im- ports have been completely cut off by the Allied blockade of the Medi- terranean.

NEW PACIFIC AIR ROUTE

SPECIAL TO THE "TELEGRAPH" WASHINGTON, June 12 (UP),— have been Pan American Airways granted' the necessary permits to operate the new route between San Francisco, Honolulu, Canton Island; Noumea and Auckland (New Zea- Jand).

The Ume-table between San Fran cisco and Auckland calls for a 4- day service; compared with 17 days for steamers

The new line will connect with the existing Pan-American service lo Hongkong and the Far East at Hieno lulu.

US. Senator Warns, "No War" Vote

WASHINGTON, Juno 12 (Nouter)

We ought to serve notice that a majority of the Senators are not going to get into it," declared Senator

Wheeler, in the Senate to-day

Explosion In Ship's Hold

SPECIAL TO THE !!TELEGRAPH" BUENOS AIRES, June 12 (UP).- An explosion, followed by an intence Are, occurred in No. 3 hold of the Royal Mail Line's 4,718-ton freighter Gascony this morning.

The Gascony was anchored in the Harbour.

It is believed the explosion was caused by bombs.

Two members of the Injured.

crew

Church Bells To Peal Warning

were

The

BPECIAL TO THE "TELEGRAPH" LONDON, June 12 (UP) Church has been called in to assist in dealing with parachutists.

The Archbishop of Canterbury to day revealed that Sir John Anderson bas requested that church bells be rung as a warning of the approach of parachutists or air borno troops. The Archbishop has promised that the Church will comply..

STOCK MARKET REPORT

Senator Wheeler in a Democratic The Hongkong Exchan Candidate for Presidential nomination, summary, larded yesterday

He added that he would break with the Democratie Párty if it became a

Market waN YOTY- Buyers

come in with an eye to hooty, said a military, expert here to day.

How could Italy hope to help Germany?

Three Considerations

Govt. House Reception In honour of His Majesty the King's birthday a reception for members of the Consular body in the Colony was held at Government House at ilu.m. to-day.

Guests, who included representatives of all Consulate Generals and Con- sulates in the Colony with the excep- tion of the German and Itallon Con- There are three main points: sulates were received by HE. the 1-A large French Army must be Omeer Administering the Govern- employed on the Alpine front. In-ment, the Hon. Mr. N. L. Smith, deed this army has already taken up The Dean of the Consular body, the Its positions.

Belgian Consul-General, M. Henry 2. The Allied troops in the Medi-Vanderstraeten proposed the toast to terranean and Near East will be kept the King to which

repiled. busy and cannot be sent to France.

for

Nazi Wireless

When, during the exchange of signals which followed, it appeared that she was American, the U-boat captain allowed her to pass freely.

The announcer denied that the had been German Government notified that the Washington had left.

WORLD WAR WARNING

NEW YORK, June 12 (Reuter) In a brief speech at the World's Fair His Excellency "United Kingdom Day" ceremontes,

Lord Lothian, the British

Ambas-

3The Italians may-take over part Those present included representa-sador, emphasized that Italy's action of the Western Front thus relieving lives of the American, Japanese, might turn the present. conflict into

a world war.

Mayor La Guardia referred to the Potni 3 the Germans for their drive on Paris French, Norwegian, Danish, Swedish

3 is an

interesting subject and Dutch Consulates.

as the emblem of A luncheon, which was attended by Magna Carta

the liberty-loving people all over the study Prior

to 1914, when Italy was a H.E. the Officer Administering member of the Triple Alliance with Government was held at the Hong-world and added, "If the Italian people had a voles in their govern- to ment, the Italian Ambassador would Germany and Austria, Italy took over kong Club to-day. the Alsace Lorraine front and thus

of being absent and ashamed." relieved the German troops for other

be present and glorious to-day instead

duties,

LONDON, June 12 (Reuter)-Mr. Winston Churchill, the Prime Minis

That plan fell through when Italy joined the Allies.

Similar Plan?

It is possible that a similar plan is being put through now that the through Italian troops have passed the Brenner Pass,

many

The Germans have flung fresh troops into the battle for France, The arrival of Italian troops under German officers might explain this:

The military expert emphasised that there was no official confirmation of this. He said that it was only his own theory. However, he thought it worthy of close attention.

The Tondor Spot Abyssinia is the tender spot and can be cut off trom communication with Italy.

The official dinner, which was have been held at Government House this evening has been cancelled.

Submarine ter returned from France fought

Overdue

Polish Vessel Believed To Be Lost

London, June 12. The Polish Naval Staff in London announces that as the return of the submarine Orzel from patre 19 now considerably overdue, she must be presumed lost-Reuter,

Knows Naxi Strongth

London, June 12. During question time in the House of Commons to-day Mr. Alexander, First Lord of the Admirally, de It was stated in London that 60,000 clared that he had information as to white Italians living there are already the. number of swift torpedo boats in a difficult position through food possessed by Germany and of their shortage and the hostile population, speed. Reuter.

The position is similar around Libya which is dependent on ses transport for water. There is already a-ahortage-of-water.there. The Allies aro just as

well placed in the Mediterranean as the Italians. Western Front Vital

It may well be that in a short time some of our planes there may be spared for the Western Front

It is on the Westem Front that the war will be won or lost.

ROME ULTIMATUM

Minister Hands Note

To Egypt

Cairo, June 12. The Italian Minister has handed on ultimatum to the Egyptian Gov- ernment but the terms have not yet been divulged.

The French are hard-pressed and may have to rellaquish Paris.

The Chamber has resolved to rever British reinforcements are pouring into France almost as quickly as they diplomatic relations with Italy.

About 700 Italians have evacuated from Dunkirk.

General Weygand and his men are rounded up throughout Egypt and calm. That is the best feature of the Interned near the

-Red" -United Press, ' situation.

The speaker pointed out that wa have become accustomed to think of battles in terms of territory whereas to-day, the French think only in terms of the complete destruction of the German armites,

been

and shortly after reaching London, he had an audience with the King last- ing half-an-hour.

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GERMANS LOSE THEIR JOBS

SPECIAL TO THE UTELEGRAPHY BOGOTA, June 12 (UP)The Colombia Nationalize Aviation Com- pany has dismissed eighty German' pilots, radio-operators and mechanica. They will be replaced by Amerl-.

LONDON, June 12 (Reuter) new Order in Council provides for one month's imprisonment and/or a line of CB0 for any person found guilty of publishing any report or statement relating to matters concatis, nested with the war likely to cause The Germans will receive 500.000

GMANempèsw, as compensation. alarm or despondency.

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B. W.O. F. CONCERT

by The Hongkong Singers

Tuesday, June 25, at 9.30 p.m.

̄in the CHINA FLEET CLUB.

Itoms on the Programme will be:-

(a) Serenade to Music (Vaughan Williams>

(b) In Honour of the City (Dyson)

(c) Acis and Galatea (Handel) ... with orchestra.

The two former are accompanied on two planos.

BoloLts: Anne Balfour, Jean Grieg, Helen Lockhart, Gaston

D'Aquino and Harold Piercy.

Conducior: IR.M. Smith,

Accompanists: Rupert Baldwin, E. O'Neill Shaw.

Booking: Tsang Fook Piano Co. Pricas: $3.00, $2.00 & $1.00-

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