1941-08-18 — Page 33

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CHINA MAIL

FIRST NEWSPAPER IN THE FAR EAST. ESTABLISHED 1845.

No. 33,028

MONDAY, AUGUST 18, 1941

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BUTTER

NAZI THRUST SLOWING DOWN Another "Smolensk" In Offing Budenny To Fight On Dnieper Bend

(By Reuter's Special Correspondent in Moscow)

THE LATEST RUSSIAN COMMUNIQUE AGAIN SPEAKS OF FIGHTING ALL ALONG THE FRONT AND PRECISE INFORMA- TION IS LACKING. BUT THE IMPRESSION IN MOSCOW IS THAT THE BIG GERMAN THRUST IN THE UKRAINE IS SLOW. ING DOWN, OWING TO THE FIERCE RUSSIAN RESISTANCE, AND IT IS CONCEIV ABLE THAT THE DNIEPER BEND WILL BE-

COME ANOTHER “SMOLENSK."

What the Russians have abandoned so ¡far does not appear vitally essential and the German claim of the capture of the Krivoirog iron ore centre is not confirmed.

Indication that the fighting is slightly slowing down is provided by relatively small Russian figures of both Russian and German air losses. During the fiercest moments of the Smolensk battle these ran into many dozens daily.

of

de-

tlons.

There

Vichy Halts Delivery Of

Rubber

(SPECIAL TO "CHINA MAIL")

A VICHY GOVERNMENT DE- CREE ISSUED YESTERDAY CANCELLED ALL CONTRACTS INVOLVING THE SALE OF INDO-CHINA RUBBER.

THAILAND DENIES A RUMOUR

There is no truth whatever in the for- eign news report that Britain has demanded from the Thai Gov- ernment control of

the

CHAOS IN SHANGHAI MARKET

The Shanghai business world, not for the first in the past three years, was thrown into a state of confusion this morning.

time Aranya-Prades railway line and in case of, non-compli- ance Britain would threaten her with for- cible measures, stated a communique issued in Bangkok yesterday. -Reuter.

Demands

On Iran

Reported

Although the Germans postess entry of the German troops is

nothing but Smolensk itself it cost them heavy

a pack of Inven This action is taken "for the best interests of the public," according losses and was a moral blow

order which was vital importance, namely a

are reliable indications to the official

in the State Jornal. monstration of the failure of the that the Germans are stunned by published blitzkrieg.

the Russians' resistance in this Immediate sales and future de-

An Ankara dispatch to sector and have not attempted to liverles, have, accordingly, been

To the halted. International News Ser-the official Soviet news the offensive. resume

(Continued on Page 16}

At the end of June German Army orders confidently in- structed tank and other units what they must do after, the road to Moscow was broken open. Actu- ally the Germans are stuck up against Smolensk.

Details already have been pub- lished about the numerous Ger- man tank divisions totally Or partly wiped out in this

flerce 30-day moving battle in the course of which (it is now stated in the "Red Star" by Lieutenant- General Yeremenky) the town of Smolensk changed hands several times.

Thousands Knocked

Out

vice.

REORGANISATION

OF U.S. CABINET?

(SPECIAL TO "CHINA MAIL”)

HIGH OFFICIALS in Washington expect President Roosevelt to make three far-reach-

Lieutenant General Yere- ing initial moves toward his sea conference

menky writes: "Thousands

of

German tanks, after triumphal objectives.

marches 'ábfoss, Europe and the Balkan States, have as a result,

of the Smolensk battle been

tillery or blown up.

the spirit of the German infatitry

...” One is to appoint and despatch a high

burnt and knocked out by ar: ranking military mission to Moscow to parti- "This has severely weakened cipate in the Anglo-American-Russian War which greatly prefers to advance Council designed to strengthen the new tri-

Without such support the partite front against Germany.

under cover of armoured units.

German Infantry does. not show

Subsequent Anglo American any great courage of initiative. The second is to reorganise his, That has been our constant ex- cabinet and Supreme Defence measures towards the realisation of the Roosevelt-Churchill eight perience."

Lieutenant-General Yeiemenky agencies for production and eco-points and for the achievement adds that many times the Ger- nomic warfare, to speed the flow mans broke into Smolensk where of armaments to Britain and Rua they were completely wiped out sig, and to checks further Axis by the Russians defending every street and every house,

expansion in the Atlantic or Pack

Heap Of Ruins

Incidentally, confirms that Smolensk

A Now!

thát

Lich Vrlon). German og about the

of peace still await disclosure.

Omcials considered that certain future joint moves will have a universal effect pointing out the President's cryptic assertion on disembarkingenerati Rockland: (Maine) on Saturday that he and Mr. Churchill discussed every nation.

The third is to request quick authorisation of the new ten billion Lease and Lond Fund to enable a greatly Intensified Bri- Mr, Cordell Hull stated that

received tion

morial and later land offen Stalin favourably alve against the Reich assum-- Anglo-American proposal

War Conference. ing that they still will be:dom- Three-Pow

New DA ORA OR DORNI BAMINIMA

agency says that Ger-

The Hong Kong and Shanghai Banking Corporation at 9.30 a.m. announced merchant selling rates of sterling at 3-3/32d and U.S. dollars at 5-5/16 cents as com- pared to 2-7/8 and -4-13/16, res- pectively, on Saturday..

The inter-bank-market, which opened at 9 a.m. with "selling at respectively, 2-27/32 and -4-3/4. immediately turned nominal, no rates being quoted.

Throughout the morning condi tions in the market were chaotic, all transactions being brought to a standstill pending clarification which is expected this afternoon.

in the form of an announcement

by the banlts, — Reuter::

many has demanded air sources" for the report,

The German Minister in Iran bases in Iran and fuel is also stated to have warned the supplies for German Iranian Government that diplo 'planes using them.

matic relations would be, severed it German "tourists" were expell- The dispatch quotes "reliable ed from the country.

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