Thursday,

HONGKONG TELEGRAPH

SOVIETS PREPARING TO STAGE BIG COUNTER-OFFENSIVE

VICHY, JULY 2 (REUTER).—GERMAN UNITS ARE ONLY 325 MILES FROM MOSCOW, ACCORDING to reports reaching STOCKHOLM, SAYS A DISPATCH TO THE VICHY NEWS AGENCY

THESE ARE ADVANCE UNITS, THE DISPATCH SAYS, WHICH HAVE THRUST BEYOND MINSK. THIS COLUMN HAS LEFT THE MAIN MINSK-SMOLENSK-MOSCOW ROAD AND IS APPARENTLY aiming AT AN ENCircling' MOVEMENT SIMILAR TO THAT CARRIED OUT EAST OF BIALYSTOK,

Meanwhile, these reports continue, the Russians are Chiang Like

preparing a counter-offensive. Large Soviet forces are concentrated at Smolensk about 250 miles east of Minsk and the same distance from Moscow.

The dispatch adds that fresh Soviet divisions are ceaselessly moving westwards from Moscow.

BERLIN SAYS MURMANSK TAKEN

Special to the "Telegraph'

Churchill: Odds

Undismayed By

In

July 3, 1941.

BRITAIN AGREES TO AID FRENCH

Allows Service From U.S. To N. Africa

LONDON, July 2 (British Wire- lees).-Anwering a question in the House of Commons to-day, the Pari- amentary Secretary of the Ministry of Economie Warfare stated that as result of consultation with the U.S. Government, the British Government had agreed to allow to sail from the U.S.A. to French North Africa, three French ships one of wich is the tanker Scheherezado,

Supplies are to be consumed solely in French North Africa and their distribution is subject to the auprcvi. ston of American Consular officers.

In

reply

to supplementary ques- tlong, the Prime Minister wald, " thlok in this Important matter wo must be guided to a large extent by the great friendly country whose as- sistence Is Indispensable to our war effort.

Respect For U.S.

LONDON, July 2 (Reuter).—In an editorial under the title "Toughness of China," "The Times" publishes from a special correspondent in China a lengthy message from which the following is an extract:

| in a different way perhaps, but with He added, "As a matter of high policy, I am of the opinion that the "Although the Chinese were equal stofelsm.

Burma Road

views of the United States should be | Berlin claims that German troops yesterday occupied unable to conceal their dismay Simiturly the bombing of the treated with the greatest respect. I Pact was Burma Road may hamper but cannot am quite certain that any action of Murmansk, important port on the northwest tip of when the Matsuoka

announced, General Chiang Kais stop the flow of supplies into "Free this kind that may be taken by the Russia which is linked to a railway running to Leningrad, shek himself never wavered. China Travellers arriving hero United States la conceived only in

have come the whole way "Since the outbreak of war

fron sincere desire to aid the war effort reveals "United Press" in messages from Berlin and

(China his altitude has been that of Lashio by road without once being of this counned by the Ministry Moscow.

Churchill after the fall of France Inrced to use the river ferries. After anno-res that necessary for years, if necessary the destruction of the bridges over of Economic Warfare that two French alone. Nor did any of his suppor- the Mekong, the Chiere constructed ships would be permitted to sail with new suspension bridge In CCVCH In general cargo from the United Stútes to French North Afrien while in some of their two other French ships would be of war through luck nf nilowed to mail in bailast from Mar- are still selles to the U.S.A. thus forming a "shuttle service" between the USA.

French North Afrien

!erved.

Chungking that China, if not betray-

led.

It has

weelts.

It was

The German high command aiso Nazi forces have occupied Windau and that 100 Sovietters really doubt the future.

"There was a general feeling in tanks have been destroyed near Zloozow.

Against this Moscow reporig; hul wiped out the advance German, had been badly served. Unable Indicapped

Russlauipment, the Chinese to belleve, however, that that the Soviets would withdraw her netive support, largely unable to resist major Japan that a Soviet naval squadron panzer units and shelled Constanza and destroyed mild garantee that Hitler would the Chinese felt that the blow was ese attacks in the field. With a vast and

| number of never win the war.

The Scheherezade, an all tanker of moral rather than materinl.

troops at their disposal. the German-Rumanian naval

M. Lozovsky, the Vice Foreign

Peace Party

however, they can constantly form 13,000 tons, which was intercepted by new concentrations in different parts a British warship in May and taken hase there.

Commissar, denied German ekil

The chief moral effect for which of the country which the Japanese Flo Bermuda, will be The report added that the that Iting and Minsk had been oc* observers waited, was the reactist)are compelled to break up in order to Dakar and Casablated to sail imd then cupied by Nazi troops, adding that Rumanians were caught the abandonment of this or that clly The Peace Party is small in numbers their hands.

of the Peace Party in Chuasing to remove threats to big ellies in back to the United States. awares and that the coastal view of strategie considerations.

Navigerts will be issued to the Repeated Efforts

French ships and the system 19 de- batteries did not open live until, not important so long as the but is never quite dounes and is not

Party in the usual seine.

Japan is thus forced to expend her signed to restore some kind of normal- after the Russian fleet had ful-main forces of the army were pre- na avowed leader and no cohesion. filled its task and departed.

The term has come to include those herpy in taking towns which he trade between he J.S.A, and French Heavy Nazi Losecs elements inside and outside the Gos-had captured three or four times be- North Afrlea, but its continuance is dependent on the correct and proper Prior to their arrival at a home

ZURICH, July 2 (Reuter)ernment, many of them unktown to fore. port, the flect fought off and shut;

If the Japanese had hoped that the use of supplies in French North Stressing the violence of the fighting each other, who are weary of hostilit the Pact would and the in Africa, down o German bumber and

fom the Russian front. the Berlin cor-les. Their aim is to go home-back blockade of China, they appear sank a submarine.

respondent of the Swiss newspaper to the great cllies of the coast." "Nationale Zeitung says that the

to have been disappointed. Tru-STORMS IN INDIA Outlook Changed Russians at inany points are flerrely| Many who in their hearts favenworthy Agures cannot be obtained engaging and causing heavy losses peace are willing to fight on while the volume of supplies still coming

overland from Russia, but some! BOMBAY, July 2 (Reuter) --Aller to the Garmin forces advancing to hope of victory remains; it is when foreign observers believe that it in 30-hour interruption duc to

support of motorised troups things are going badly that they tens little short of the present tonnage on terreniat ralus, telegraph which have pierced the Russian lines to relapse.

the Burma Road.

munication between Bombay und in the Minsk sector.

Refore any voice for peace could On balance, the will of the Chinese other parts of India has beeth Foreign military dretes in Berfiu, be raised in Chungking, much less to carry on the war despite ups and restored, he states, are wondering whether the make itself heard in the councils of downs remains unimpaired. The Soviet military leaders have not dis- state, three things happened which rebound covered a new tactical method of promptly changed the outlook. dealing with the German advance.

ALEKSANDROYSK

00..

-25

MUURMANSK

KOLA

R.

the

The

had!

from

Other Help

the Matsuulta Pact came quickly in the British and Reports were received from American credits, the arrival at an Nazi Communique

Moscow of the Russian intention to important American Air Mission in LONDON, July 2 (Heuter).The continue assistance to China; Britair. Chungking and the British Ambassa German Comunand to-night issued unand the United States announced new lar's cast-iron assurance that the

the currency credits; and suspicion suc-¡ Burma Road would be kept open. annomeement dated from Fuehrer's headquarters-claiming neeecled the transports of delight with

Japanese press "decision of great importance" in the which

Other more tangible forms of-help battle east of Bialystok, where large acclaimed the Pact.

have followed, The Chinese now Soviet forces are stated to have brent

A Time Bomb

feel that they are no longer alune in The Russians claim to have dealt surrounded.

The Chinese, who had regarded the holding the front in the Far Enst. heavy blown to the Germans In the] The announcement states: "It signing of the Pact as a time-bomb, † Almost without exception, the Intest communique issued in Moscow. becoming more and more clear that the effects of which could not be educated classes are anxious for an The communique reads:.

the battle of amihilation east of seen until the existing flow of Russ-Allied victory so that they shall be In the Dvinsk and Minsk sectors Bialystok has resulted in a decision lan supplies had come to hand, now free to

to build up a great new China our troops acted throughout the night, of the greatest importance for world recovered their confidence. Argong of their own shaping, destroying: enemy Vanguard tunk history." units. During the night our troops,j "Indescribable" chaos has operating in the Lutsk sector, fought taken the Soviet Army. enemy motorised and mechanised

Capture Claimed

the higher Government officials in General Chiang Kai-shek's attitude over-Chungking, it is almost axiomatic may be judited from the report that that China's future depends on an he has threatened to shoot the next Allied victory In Europe. They emissary who brings him peace units, dealing them heavy blows. In The amouncernent then lists the could make peace with Japan to- overtures from the Japanese, other sectors of the front there was alleged Soviet losses there and on morrow but the Japanese Army Whether true or not, there are few Intense patrol activity with fl other sectors of the front from June, would be track again in five or ten Chinese, In the present temper of machine-gun and

On July 1. despite bad weatliero July 1 os 5,774 armoured car years unlesspeare was granteed the Generalissimo, prepared to put

and artillery Bring,

2,330 guns and anti-aircraft as an integral part of the rent world his "report" to this “lesE, which in some places rendered flying four armncured trains, an "innumer settlement for which free peoples are Impossible, our air force successfully able" quantity of machine-gans and fighting. bonsbed enemy tank troops in themes. 4.725 planes and 100,000 pri-

Armed Truce Dvinsk and Minsk sectors,

Nazis Lose 102 Planes

Although the relations between the "With the stubborn resistance pui| According to precise calculations, up by the Soviet, forces and their Government and the Chinese Com- 102 enemy aircraft were brought determined efforts to break through, munlds can best be described as an down on June 30, and not 56 as the number killed will be many times armed truce, the higher leaders on previously reported.

higher than the prisoners," concludes both sides appear determined to "Our own prevent the dispute from interfering

soners.

Trainer Takes Too Much

Could Not Remember

In addition to one aerodrome, our the announcement, addin ortunae with China's resistance to be to the Hongkong Jockey Club, was ale force successfully attacked some leases on the whole 50 neroplanes which had no time to by small,"

LONDO Pulsory A.R.P.

take off.

On July 1, 54 enemy aircraft were

July

falled to return.

In

German Blitzkrieg on

a summary

of the Russo- decreed by

front, "United Press" reveals that Moscow Radio.

the fighting continued, yesterday unprecedented fury, with

withi

Parachutists Seized

with

the in- N. Kuostretsoil, 25, trainer attached vaders,

The important fact about Communists is not so much that they fined $5 by Mr H. G. Sheldon, K.C., at Central Magistracy, this morning, Communist us that they are

Shan Kwong Rond, outside the Club stables,

about 4 p.m. yesterday. Sergeant Evans stated that in res- ponse to a telephone message from Mr Walker of the Jockey Club stables to the effect tha! Defendant was drunk and was cutting up the turf in the stables, he went there and fourd Defendant on the road outside. He took him to the Station.

Defendant stated that he did not remember anything.

2 (Beuter)-Com-re Com downed. Twenty-two of our planes pulsory air raid precautions training Chinese and may be expected to act for being drunk and disorderly ir

for all Russian citizens of 10 to 600s such.

large After repeated raids the Council of the the castern Peoples Commissars, according numbers of warplanes, the Japanese have still failed to realise that they can bomb Chungking for years with out much effect. The elty has the SPECIAL TO THE "TELEGRAPH"

nest passive air defences in the STOCKHOLM, July 2 (UP).-

world."

Dug-outs are built in soild Radia Tallinn -day reported that rock, capable of sustaining direct hits The Germans claimed indefinite hundreds of German

parachutists progress towards Moscow, Leningrad were captured in Estonla yesterday

by the heaviest bombs. and Klev.

When it comes to bombing, the and to-day. It sounced that the Russian Denial

entire population of Estonia has been Chinese can take it like the British, However, the official spokesmai in ordered to be en their guard against| Moscow declared that the Hussions cuemy parachutisis.

neither side sa for being able tol strike a decisive blow,

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