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The

FIRST EDITION

Hongkong Telegraph.

26 Nathan Road,

Special USED CAR

at

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Kowloon.

FOUNDED XBOX

No. 10513

五拜 號八十月七英港香

FRIDAY, JULY 18, 1941.

日四廿月六

SINGLE COPY 10 CENTS $30.00 PER ANNUM

GILMAN'S

Prince Konoye Retains

Japanese Premiership

Konoye To Head New Cabinet With Army And Navy Blessings

TOKYO, July 17 (Reuter).-Prince Konoye has accepted the Imperial command to form a new Cabinet, and has already received a pledge of co-operation from the War and Navy Minis ters.

HISTORY'S GREATEST Value Of

BATTLE

IN

NOW IN

Russia

OF ARMS As Ally

FULL FULL

Special to the “Telegraph” `

SWING Sir Ronald Cross SWING Drops A Brick

SYDNEY, July 17 (Reuter). BERLIN, JULY 17 (UP).—THE GERMAN war machinE, SURGING EASTWARD Russia is our Ally, and those "I rejoice that we have this UNDER A CLOAK OF ARTIFICIAL FOG, IN THE "GREATEST STRUGGLE in worlD HIS-hatred by words or deeds cer powerful nation on our side. TORY", TO-DAY. CLAIMED THE CAPTURE OF SMOLENSK ON THE ROAD TO MOSCOW,ininly are not friends of Britain who hate her and express KISHINEFF, THE BESSARABIAN CAPITAL, AND OF THE LAST HEAVY DEFENCES OF KIEV.at the present time,"

D.N.B. REPORTED THAT THE ALL-out struggle saw NINE MILLION MEN AND MASSES OF WEAPONS LOCKED IN BATTLE.

The German official agency stated that the Germans are driving on Leningrad, smashing Red counter-attacks "with the bloodiest losses" while the authorised military spokesman described a gigantic conflict along the entire front "which will probably decide the fate of the Soviet- German war."

the

D.N.B. revealed that the German break-through on Stalin line was incomplete, leaving important fortified strong- holds in the rear still uncaptured. The strongly defended town of Polotsk, about 40 miles west of the Stalin line on the Vitebsk front, was taken only yesterday, the Germans having passed by it in their first break-through.

Smolensk is stated to be one

of the heaviest losses to the Soviet armies so far, according to responsible quarters. The city is an extremely important railway and highway junction and is also one of the largest in- dustrial centres west of Moscow, with big armament and aero- plane factories.

The city had been conselessly bombed by past three days in an effort to put the factories out of commission and

the Red Army,

the Luftwaffe for the

to wreek the rear communications of

Indo-China

Professes

Ignorance

No Bases For Tokyo

R.A.F.Damage 17 Enemy Ships

LONDON, July 17 (Reuter).—À motor vessel of 17,000 tons was hit by several bombs, one falling between the funnels, when British Blenheim bombers raided afternoon.

In all, 17 ships of an estimated tonnage of between 90,000 and 100,000 tons have been put out tof action.

British aircraft attacked u 6,000 ton

enemy tanker in the Channel late yesterday evening. In spite of heavy anti-aircraft fire, the tanker was hit amid- ships by torpedoes and left sinking.

offensive

Five Fighters Down Military, naval and civil authori-German fighter plaucs were destroyed SAIGON, July 17 (Reuter).- LONDON, July 17 (Reuter).-Five ties deny all knowledge of any

to-day-two Smolensk Reports

during irapending arrangement allowing three during patrols over the Channel, sweep over Northern France and LONDON, July 17 (Router)-On Japan the use of naval and air states the British Air Ministry. the eastern front the Germuns claim-bases in southern Indo-China as Two British Aghters are missing. ed to have captured Smolensk but suggested in foreign press com.

Fighters of the British Air Force this has not been substantiated by ment which is characterised as

have been the German High Command.

active over Northern France and the Channel to-day. tendentious.

It is not unlikely that the Germans

The senior statesmen met this afternoon to choose the can- didate for the premiership and the Marquis Koichi Kido, Lord Keeper of the Privy Seal, went to the Imperial Palaco-to-report--are in the vicinity of the city as the their decision to the Emperor who, with the Empress, had re- turned from the country villa only 25 minutes earlier,

Lindbergh

Demands

Apology

Gibe By Ickes

Soviets assert that fighting is lak- Ing place in that area.

arc. CON-

A little later Prince Konoye arrived' On the eastern front, the Germons at the Palace from where he later late that 9,000,000 men went to see Baron Hiranuma, the out-fronting each other on a scale ex- going Minister of Home Affairs and ceeding anything. In history, former Premier, with whom he con-

ferred for an hour.

No Confirmation

.

The possibility of such an accord In the immediate future appears to be precluded by the absence of the Governor-General and the majority of his staff on a short trip of Inspec- tion in northern Cochin-China and Cambodia, and the departure

of General Sumita, head of the Japanese Mission, by plane for Tokyo.

Military Cabinet

WAVELL

IN INDIA

Praises Country's Aid In Mediterranean Campaign

Rotterdam

yesterday

Roosevelt Blacklists

Nazi Firms

17

This statement was made by. the Australian Attorney General and Navy Minister Mr W. M. Hughes, replying to a statement alleged to have been made by the new High Commissioner, Sir Ronald Cross, on his arrival in Australia yesterday.

Sir Ronald Cross is reported to have said: "The Russian system of Gov- ernment is hated throughout England; only a tiny minority think that it in better than the Nazi dictatorship."

Sir Ronald protested of being quoted out of the context of ไป: ree marks and sold that the report did not convey is real meaning. lle | went on, "I agree with Mr Churchill's

remarks about Communism re past,

in the

Sir Ronald added: "I have not even begun to my what Mr Churchill saldi about 'Communists. It not my business to engage in controversy but I agree with Mr-Churchill's attitude towards Communism,"

No Commitment

"DTr

Mr Hughes had also sálů, Churchill's recent speech answers

Sir Roriald Cross with whose views I disagree, The alliance does not SPECIAL TO THE "TELEGRAPH", commit Russia to the acceptance of WASHINGTON,

our theory of democracy nor does 11 July (UP).-President Roosevelt to

commit us to accept Communism.”

American Axis agent firms,

Meanwhile Mr Menzies remarked day blacklisted 1,800

Latin fon Mr Hughes

comments,

"Mr Hughes was

was not speaking on behalf The White House said that Ronald Cross is a highly qualified man of the Australian Government. Sir the blacklist will have two prin- from Britain. If he is not at liberty cipal functions.

to make a statement regarding the

Britain position. in

I completely misunderstand the situation.

Firstly; no articles covered in the export control list on August 2, 1940 may be exported to persons named in the blacklist except under special circumstances,

Secondly, persons llated

or

blacklist will be treated as though on the they are nationals of Germany Italy within the meaning of Execu- tive Order 8,380 as amended, under which the July 14. 1041 freezing control was extended to all countries) In Europe, and their nationals.

SIMLA, July 17 (Reuter). Latest Chungking

Appointments

SPECIAL TO THE "TELEGRAPH"

U. S. ARMY REACHES

· PEAK

NEW DIVE-BOMBERS

WASHINGTON, July 17 (Reuter)-United States land forces have reached a peace- a campaign in the Western Desert Japanese source regarding the use and the occupation of Syria

time peak of 1,477,000, of whom facilities outside Tonkin.

CHUNGKING, July 17 (UP)-It 624,000 are selective trainees, could hardly have been carried vice-Ministers have been named to tary of War, at a press confer- has been confirmed that two new said Mr Patterson, Under-Secre- declared General Sir the Foreign Office-Mir Fu Ping- ence to-day.

Prince Konoye at 10 p.m. met the LONDON, July 17 (Reuter)-Up War Minister, Lieut-General Tojo, to 6.30 p.m. (G.M.T.) the German and the Navy Minister, Admiral radio had still ride no mention offers that Indo-China has not received assistance and without it, the It is confirmed in responsible quar-"India has given every possible Oikawa. The conference is under the chain by the official stood to have resulted in a complete News Agency that

German the

demands whatever from important any agreement of views.

town of Smolensk, 220 miles west of Another meeting was called when Moscow, had been captured by the of Kenji Tomita, the Cabinet's Chief Nazis. NEW YORK, July 17 (Reu- Secretary, was present. ter).-Mr Charles Lindbergh visited by Yoshiye Salto, the Foreign

Prince Kongye

Progress In South previously i has written to President Roose-Ministry adviser.

LONDON, July 17 (Reuter)The Gennon official news agency claims velt demanding an apology from

that German and Rumanian troops Mr Harold Ickes, Minister of the

have reached Kishineff, enpilal of Interior, for "certain statements

Bessarabin. and implications" made by him in a recent speech.

w

was

Form Cabinet To-day

It is expected that Prince Konoye resume the formation of the Cabinet to-morrow.

It is unofficially LONDON, July 17 (Reuter).—Mr predicted that he will finish the task Harry Hopkins, who is in charge of; during the day and that the installa- the Lease and Lend programme, TURN to Back Page, Column 3 arrived in London to-day,

U.S. Army Chief Warns Of

Possible German Designs

Demoured.

Chinese Ambassador

the

The fall of the Konoye Cabinet has aroused lively speculation here. It out," ment had represented the ultimate in in-Chief in India, at a press con-Mr Chien Tal, until recently is generally thought that this govern- Archibald Wavell, Commander-chiang will succeed Mr Hsu Mo and military rule and the possibility of ference to-day. n resurgence of business interests is not impossible although the reasons he said, to see the magnificent work Chinn via Lisbon and America,

to Berlin, is It had been an Inspiration to him, succeeding Mr T. K. Tsen. for the fall and the nature of the new of the Indian troops in the Middle

Mr Chien Tai is now en route to Kovernment are "anybody's guess." East and to know of India's great effort from the invaluable assistance given him there. A Leading Role

Naval Parley In Washington

"

war

LATEST

Mr Roosevelt To

Discuss Far East

Inspect.

He added that the War Deportment had received a "substantial delivery" of A24 new Douglas Bght dive- bombers which, he declared, would "out-perform any dive-bomber in Europe."

Command Changes

Commons Will Debate War Production Again

Mir Ickes, In Fals Bastille Day

Mr Patterson said that following speech, stated, "A study of Hitler's

General Wavell emphasised that in

yesterday's re-shulle in Arny High methods of internal disorganisation

the Middle East and elsewhere the

Command, which involved 17 Major- and demoralisation will help one to

forces from India continue to play

Generals, WASHINGTON, July 17 (UP):~

there would be more lending part and contribute to President Roosevelt to-day arranged Department's policy of "assigning understand Lindbergh and make one,

in conformity with the War wards Anal victory, realise what a menace he and those

WASHINGTON, July 17 (Router). General Wavell said, "So long as we Mr Sumner Welles who has received ly."

Referring

to discuss the Far Eastern situation Generals to duties which they are to India's defence, with the Under Secretary of State, belleved to perform more effective like him. are to the United States."

President Roosevelt has called

have so many young men willing to the report from the United States Mr Ickes also described Lindbergh

conference of chief nova! na "a knight of the German Eagle"

serve and such fine material, and so Ambassador to Japan, Mr Josephson said that the changes "were not advisors long as India confinues to produce Grew, which

Replying to questions, Mr Patior for lala to-day. The men summon-war material in addition to the and sald that Lindberghi's "passionate

ed are Colonel Knox, Secretary

the President will closely linked" with the recent exer- words are to encourage Hitler and

to Special to the "Telegraph"

the Navy, Admiral Stark, Chief

supplies coming from England, we to break down the will of his fellow

cises in Tennessee, Naval

of need have no doubt as to the defence citizens to resist Ritier and Nazism," WASHINGTON, July 17 (UP).—The Chief of Staff of the Ernest King. Commander of the

Operations, Rear-Admiral of India." Lindbergh, however, denies the United States Army, General George Marshall, to-day told the

Atlantic Flect, and Rear-Admiral suggestion that he has connections Senate Military Affairs Committee that the Army foresees the

Richmond Tumer, Chief of the War with any foreign government, saying

Plans Division of the that he received his Germon decora- possibility of Spain, Portugal and Africa falling to the Axis

Noval Operations Office. tion while serving in the American powers. Embassy.

sesses 300 divisions, 20 of which aro] Newfoundland and Trinidad The General declared that the General Marshall declared

WASHINGTON, July 17 (Reuter). world is witnessing a "mighty United States financial expan bases are to be commissioned, one at Two full-fledged naval operations military schedule in operation. lties in Brazil were for the purpose Argentin, Newfoundland, and the

expansion and aviation faci~ The schedule began in Austria. of surrounding the hemisphere with other at Trinidad, the Navy has an- Now the Nazis are in Russin. ring of protection against a "ruth-nounced. The machine is always in one less foreign power."

The bases will have maintenance place at one time. In each case Iceland as no existing Army unit was operating in the Atlantic.

The Marines, he said, had occupied and overhaul facilities for warships Hongkong's now General other people are lulled by trea- capable of doing the job because a Officor Commanding, Major- ties and trade pacts. There is portion of the personnel consisted of Previous Navy General C. M. Maltby, M.C., no doubt whatever that unless selectees and reserve officers whose indicated that, the Newfoundland arrived in the Colony this we prepare we will find ourselves transfer from the Western Hemis-base would consist merely of a naval morning aboard the President in a tragic situation. Wo can-

phere is illegal.

jair station.. Navy sources to-day Madison,

the deadline for Con-say that it will have Fleet anchorage, not speculate with our security."gression Major-General.Maltby, who re-

acceptance or rejection of refuelling and limited .overhaul He asserted that the Army policies the legislation designed to extend the faculties for battleships, overtatt- cently held an important appoint- have been conservative, explaining Guardsmen and selectees, he assort-

servico. period of the National carriers, cruisers and other warships. ment in South India, is succeeding that they had "timed a great many ed, because the present low neces-030,000 and the Trinidad base $17,- The Argentia base will cost $17,- Major-General A E. Graselt, who is of their actions with the actions ofaltates the demobilisation of these 855,000, they being two of the alter leaving this week for a new appoint-the Hitler Government.", ment in England.

categories respectively in September leased from Britain in exchange for

destroyers.

NEW G.O.C. ARRIVES

aviation

It is reputed that Germany pos- 'and October.

that

onnouncements

Soo Back PagaTMTM For Further Lato' Nowa ""

(By "Reuter's" Parliamentary Correspondent) LONDON, July 17-Great Interest is being shown by the House of Commons In the forthcoming debate on war production.

When the Prime Minister

Man-Power Policy earlier this week promised "a Mr Churchill made known to-day third day for this subject and that the forthcoming discussion will said that ho proposed to open tho be on a very wide basis, including discussion with replies to the the Ministry of Labour, against whose the fighting services departments and criticism made last week, it was man power

criticisms, it is inevitable that pro- examination of ath phots are engaging in the pastime of welghting the possibilities of political changes following.

evident that he had reconsidered have been directed many criticisms his earlior attitude which had As the Prime Minister has ordered

an exhaustive caused the original discussion to last two days but with no War Cabinet Minister speak ing in particular, and with the Chair- man of the Production Executive, Mr Ernest Bevin, Minister of Labour, taking no part in the debate.

The House of Commons is hoping soon to take a short rest, Buch TURN to Back Pago, Column 3-

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