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Tuesday,

HONGKONG TELEGRAPH

U.S. OCCUPIES ICELAND

FROM PAGE ONE

July 8, 1941.

In Ukraine

Sees Japan As Threat

Reds Counter-Attack!

QUEEN'S

FROM PAGE ONE

FROM PAGE ONE

lund follows the same phulern us real" to be abandoned in order to io cross the River, Daleper in the the dispatch of troops to the Atlantic appense the politicul machine hap- Bobruisk sector, but were obliged to bases acquired from Great Britain, pening to be in power in Tokyo, de-retire with heavy losses under the

withering fire of the Soviet troops.

The cominunique elaims and was designed to "forestall anyclared Mr Paul McNutt.

that pincer

movement undertaken by

Suvlet troops completely annihilated Germany against the Western Hemis-

German battalion in the Mogulloy- Podolsk sector. phere,"

However, the situation differed in one major aspect inasmuch as the Presklent, earlier at a press con- ference, said that he considers Ice- land as lying outside of the Western Hemisphere: hence, if that opinion still prevalls, to-day's action means that American forces have been sent

A Russian defent might result out- right in Japan's military collabora- tion. The United States and China must now uct to prevent "a unifien- tion of the totalitarlun battlefront" across all Europe and Asia,

The time has come to act, and Chinn and America must each shoulder a fair share of the burden of putting down thla old which seeks to subjugate people

at the world. A nation teaming-up like Japan with the Axis threat, must do BD expecting to shoulder all the consequences of its actions. That comment is more than

generality.

disorder the

free

to establish a defence outpost beyond the limits of the Western Hemis- phere, in the direction of Europe. Protected Communications WASHINGTON, July 7 (Reuter).

Between Continents President Roosevelt Bald: "As

United Statca Commander-in-Chief, I have issued Certainly, "be

I

Moscow Communique MOSCOW, July 7 (Reuter).--The following in the text of the communi- que issued by the Soviet Information Board published at 10.30 p.m. G.BET.

(o-day:

"During July 1, fighting was main- ly in the Ostrov, Polotsk, Lepel, Bobruisk, Novograd Velynak and Mogulley-Podolsk sectors.

*In the northern sector of the frunt, our troops fought in the direc- tion of Kandulaketa, Dukhla and Kexholm, inflicting losses on enemy,

orders to the Navy that all necessary should not permit the reet of islands who had penetrated our ter-

steps be taken to ensure the safety-from Kamchutka to Bernco io stand of communications in the approaches as a mililary and naval barrier be- the between Iceland and the United tween the United States and

of Asia. In unfilendly States and all other strategic out-continent

hands, such a barrie

a barrier would block phis Government will ensure the forever trule with China and the adequate defence of Iceland with full Dutch East Indies." Teedition of the independence of Iceland as n' sovereign state.

In my message to the Prime Minister of Icelund, I have

given the people of Iceland the assurance that immediately the termination of emergency, be arico withdrawn, leaving the people of

the

all forces will at

Chinese Predleting an ultimate victory, Mr McNutt mentioned that it would be a victory in which China will command the Orient." started at a blitzkrieg has shown

He commented that what had

slims of becoming harl-kiri.

teeland and their government in full R.A.F. Spread Night

sovereign control of their territory." Dr Jonasson

re-

Fires In Germany

FROM PAGE ONE

"In the direction of Ostrov, our troops continued to fight stubbornly against strong enemy mechanised units, containing their advance to- wards the northeast.

River Crossing

"In the direction of Polotsk, ferce fighting developed against the enemy. who several times attempted to land large forces on the northern bank of Western Dvina, Our troops ure positions, firmly and stubbornly holding their

"Heavy fighting is taking place in the Lepel region.

"In the direction of Bobruisk, the enemy attempted several times to cross the River Dnieper, but coming under the withering fire of our tropps, fell back with heavy losses In his message to President Ronze-

to his original poslilons. velt, Iceland's Prime Minister. Dr

"in the direction Novograd

of Hermann Jonasson, stated in a con-

Volynk, cur

troops, by stubborn versation on June 24, 2 "British

fighting, are containing the advance Minister" explained to him that the

berths of British forces in Iceland were

three German warships, of strong enemy mechanised forces.

"In the direction of Moguljev- | quired elsewhere. At the same time, Scharnhorst, Gneisena and Prinz

Podolsk, our troops are engaged in it was stressed that the adequate ugen. The increased strength of quite the defences is proof, if proof were

Herce Aghting against the enemy. In defence of Ireland was of Immense

value which the this region, nur troops, cutting the importance and that President Roose-needed, of the

nf enemy battalion, an- velt was

to send United enemy has attached to these warships retreat of

nihilated it completely, send unten and of the anxiety to get them ready States

diately to supple for sea. troops

"During July 7,

air force ment and replace the British forces.

In the course of last night's attack, struck concentrated blows at mech- De, Jonasson said that he was in-

a liner of about 10.000 tons was anised enemy units and operated formed that President Roosevelt did not consider that he could take this sighted at anchor in the harbour at successfully against aerodromes."

this Brest. Diving down to attack and course except at the hvitation of the fattening out at about 5 feet, one Iceland Government. This invitation had accordingly been issued upon eight conditions.

Stress On Aircraft

The Iceland Government placed special stress on there being "suficient planes for defensive pur- 'pores."

President Roosevelt replied that this and the other conditions were "fully acceptable" to the Unitedd States and would be observed.

An exchange of diplomatic re- presentatives is contemplated and President Roosevelt said

our

British aircraft hit the ship, with a Mediterranean Ships

powerful bomb, the explosion of which was seen fair and square on the stern.

Russia's Reserve Army

>>> FROM PAGE ONE

that he that German troops now control the

whole of Esthonia.

would ask Congress to pgree to un arrangement to allow this exchange. In addition, Mr Roosevelt said that he was

communicating with the governments of all other Western Hemisphere nations on the United States Government's action.

Western Hemisphere

a

Damaged By R.A.F.

Continued From Page 1

hood of Damour' were, alvu attacked by bombs straddling the bridge and gun battery.

British Agbters again aftacked Vichy shipping in the harbour et Mari

In Libya

In Libya the R.A.F. was Also Rolling Attack

active. During the night of July (UP), The 5-6, raids were made on docks and

BERLIN, July

7

official news agency reports that shipping at Benghazi. Bombs felf Gernum bombers to-day carried out on motes, among the railway sidings rolling attack on the Rumanian and in a motor transport park. A front where they also attacked number of fires were started,

From all these colinums of feelog Russians. The re-

operations port said that clogged roads and vehicles causing

the planes banbed British aircraft returned safely.

enormous damage. other

It is the announced polley of the Government of United States, Pre- sident Roosevelt told Dr Jumiasson, "to undertake to join with nations of the Western Hemisphere

in the defence of the New World Pres. Pacific Line against any attempted aggression.

In

the opinion of this

Government,

11 is imperative that the integrity To Get Danish Ships

independence of Iceland be

and th

reserved because of the fact that

any occupation by leeland by a power

whose

only too clearly apparent plans for world

domination of conquest include the

New World

FROM PAGE ONE

peoples of the that the British Government felt at once directly unable to waive these rights to the menace the

of the

cative maintenance of which they attach Western Hemisphere. It is, for that the greatest importance. reason in response to your message They are, however, now satisfied that the Government of the Unlled and gratefully recognise that the use States will send immediately troops to which these ships are to be put to supplement and eventually re- will contribute directly or indirectly place the British forces there," to the war effort of the democracies.

Taken Over

Iceland's Conditions

Dr Jonasson's letter fald down the following conditions:

(1) The United States promises to withdraw her military forces im- mediately at the conclusion of the present war.

WASHINGTON, July 7 (Reuter). -The United States Maritime Com- mission announced today the re- more Danish quisitioning of seven cargo ships and their assignment to United States cperators for use in the Pacifle trade.

(2) The United States promises to recognise the "absolute Indepen- Eight Danish ships were previous į dence and sovereignly of Iceland" ly requisitioned.

and use its influence at an eventual peace treaty to recognition,

extend

the same

(3) The United States promises not to interfere with the Iceland Government during the occupation or afterwards.

Picked Troops

time past."

It was, the spokesman said, a logi- cal development of the policy the President announced when Greenland was occupied, that pulley being the intimation of the intention of the (4) The United States promises United States to take every measure to organise the defence So OK 10

necessary to safeguard the western ensure the greatest possible safety hemisphere. for the inhabitants with only "picked troops."

The occupation means that British troops will be relieved of the com- mitment of defending, Iceland and

(5) The United States undertakes the defence of Ireland without any will be by stages withdrawn, cxpense to Iceland.

(0) The United States promises to further Iceland's Interest in every possible way, including supplying "necessities" and securing the neces sary shipping.

(7) Iceland expecta any declara- tion by the President to be in agree- ment with these promises.

Danger At Change-Over (0) It is ubylous that if the United States undertakes the defence of Iceland, "it will be strong enough to meet every eventuality, and particularly in the beginning, it is expected thot as far as possible an effort will be made to prevent any speelal danger in connection with the change-over."

In connection with condition (0), Iceland has stressed the need of sumcient planes which could be used As soon as the United States has decided to undertake the defence.

Dr Jonatson cald that Iceland

reached her decision sa "an absolute- ly free sovereign state" and consi- dered it a matter of course tint the United States recognise the legal status of Iceland with both states Immediately exchanging diplomatic representatives.

For the time being there will be both Belish and American troops in leeland.

The British Government was kept fully informed beforehand.

Sovereignty Unimpaired Iceland sovereignty will remain by the complete and evacuation United States will take place im- mediately on the conclusion of the war. There will be arrangements for compensation for any darna that be done and there will be

muy The economic interests no interference with local affairs. of Iceland will be infeguarded and measures will be taken for the transport and convoyance of food and other neces-

citica.

There will also be an exchange of

diplomalle representatives between its minister, Mr Chinrics Howard Iceland and the United States. The Smith, who went to Iceland when we took over its protection, will remain there.

A

Practical Gesture The action was described as practical manifestation of American realisation of the Nazi threat to the Democracies generally in their destre 'o attain world domination.

Releases. Our Forces LONDON, July 7 (Rauter),—The

It has secondary virtue from the arrival of United States forces in point of view of Grant Britain in that Iceland was described to-night by &

It relieves us of a commitment in the British Foreign Office spokesmati as

western hemisphere of a time when "big and welcome news, and one of

German aggression in the cast is im the most important and significant oking Incrensing and fresh oblign- events that has occurred for some tons on the British Coverament,

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