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THE DAILY ALASKA EMPIRE “ALL THE NEWS ALL THE TIME” VOL. LIX., NO. 9075. JUNEAU, ALASKA, WEDNESDAY, JULY 1, 1942. MEMBER ASSOCIATED PRESS PRICE TEN CENTS JAPANESE MASS ON MANCHOUKO BORDER Decisive Battle Now NAZIS ARE 65 MILES FROM NILE | Attacking Flalamein, 35| Miles Past Eldaba, Taken Yesterday CAIRO, July 1—General Aueh-| inleck, appointed yesterday to take | command of the British Eighth Ar-| my in Egypt, declared today that the order of the day for the Eighth | Army is: “The battle is not over| yet and will not be over until we| have defeated the enemy. And de-| feat him we will.” The British Commander’s confi- dent message to his troops was pub- lished as Marshal Erwin Rommel's armored spearheads rolled ever nearer to Alexzndria and the Nile. Their advance units are some- where east of Eldaba, only 100 miles from Alexandria. The German communique today declares that Rommel's forces are attacking Elalamein, only 65 miles southwest of Alexandria. | British headquarters were non- commital as heavy fighting was reported in several localities of the | desert yesterday. CLIMAX NEARING CAIRO, July “f~~Rommel's ar- mored forces are tonight 70 miles from the Nile Delta and the battle may settle the fate of the Middle Eas The climax will be between the Axis forces and several lines of defenses of thousands of soldiers (Contmum on P.Igl’ Three) The Washmgtun Merry - Go - Round| By DREW PEARSON— and ROBERT S. ALLEN WASHINGTON—After months of backstage plugging, the State De- partment finally has put across its | idea of censoring the press on any news regarding diplomatic negoti- ations. The sales campaign to accomplish this started right after Pearl Har- bor when the press censorship code | first was being written. At that| time the career boys wanted all| criticism of their Vichy policy barred from the newspaper, but the Army, Navy and other govern- ment’ agencies demurred. They did not consider this as military infor- mhation of any value whatsoever to the enemy, Now, however, the censorship code has been restricted so that the American public must remain in ignorance of any diplomatic nego- tiations until the official cut-and- dried announcement is proclaimed. Behind-the-scenes, there is a lot of Senatorial resentment against this new policy of keep-the-public- in-the-dark. On Capitol Hill they point out that the press has performed an important funetion not only of keeping the public informed on for- eign relations, but has kept the State Department from putting across several phoney deals through the exercise of what Woodrow Wil- son once called “pitiless publimn_v"l and the policy of “open covenants openly arrived at.” For instance, two years ago when the State Department secretly plan- ned to lend $100,000,000 to Fascist Spain, it was newspaper publicity unquestionably which blocked the deal. But today under the new cen- scrship rules, newspapers could not publish such a story until after Franco already had his $100,000,000 signed, sealed and delivered. SECRET AGREEMENTS More recently, during the Molo- toff visit, newspapers published the story of the secret Russian-British agreement on Russian boundaries after the war. The Russians also wanted the United States to OK (Continued on Page Four) Implements of Sabglagg X | Chur ol This FBI photo shows the contents of a box buried on the beach south of Jacksonville, Fla., by Nazi agents who had landed from a sub- marine. Material included ten blocks of TNT and an assortment of fuses. The four black blocks in front, resembling coal, are bombs, the FBI said. - i o! o U. §. Aircraft Carrier Makes Dangerous Trips To Help Batfered Malta FUNDS CUT; DEMOBILIZE (CCTODAY WPA, NYA,_Al_so to Be Cur- failed as New Era Starts wnh FlS(aI Year “(Te:?s ?ggxc.ales the ferry trips may Ny have been made “apparently about| the time the Germans and Italians were pouring peak quantities of supphes into Africa to build up Gen. Rommel’s Libyan campaign.” On one trip the Wasp carried British fighters and other aircraft manned by RAF pilots. ———————— ADVANCESON SEVASTOPOL ARE CLAIMED Report Fort t Malakov and " Town of Balalava Captured WASHINGTON, July i American _ aircraft carrier venturing in the dangerous mid- Mediterranean battle area, recently delivered aerial reinforcements (o | the British bomb shattered island | of Malta. It is disclosed officially that the Wasp made several ferry trips with- |out damage to itself or escort ves- sels with equipment for the Brit- ish stronghold flanking the Ams supply lines to Africa. The date of the trips is not gnen in the Navy’s former announcement | but authorities said it was a “few WASHINGTON, July a half million people lost jobs or Government aid by the scrapping or curtailment of the three de- pression born agencies which cost more than $17 biilion dollars. ! Congress abolished the Civilian Conservation Corps yesterday by de- nying it funds for the fiscal year. ! The start of the new Government | business calendar teday also saw, Works Progress Administration cut to a skeleton form. The National Youth Admmstra- tion program also is in the bank-| ground of transition. The cuts were said to be due lo the change in eras from men hum— ing jobs to jobs hunting men. The life of the CCC ended ul midnight and the demob)llmuon \x‘ some 60,000 enrollees and 1‘)0(/r civilian employees of the Corps be- gan this morning. e DOUGLAS MANIS ‘man troops have captured Fort ) The | Wasp, | BERLIN, Germany, July 1—Ger-4 BRITISH SAY LIBYAFORCE IS SUPPLIED | Production Head Denies English Lacked Africa Equipment LONDON, July 1—Great Britain's ' | Production Minister and his | | predecessor today denied lack of guns, tanks and planes were respon- sible for the British military de- |feats in North Africa as critics of W 1 British Prime Minister Winstog| 2" A { hill launched a “no confis o attack in war direction. | Oliver Lyttleton, War Production | Minister, told the House of Com- mons that the manufacture of six pound guns and tanks supplying | the American dive bombers for the‘ British forces in the field, was pro- gressing steadily and added: g . ; § ! shortly we are geoing to surpass « equipment of the enemy in several | important weapons.” | In the House of Beaverbrook, former Production | Minister, said he did not think | i there was any' shortage of equip- ‘ i ment in Libya and he never heard sugoested there was any shortage of aireraft. He said the British prad more tanks in the desert thay the Gérmans afd Ttallans com- hined Be: — vy | | | | | | War dence” | Lords, Lord verbrook said he and l\ll]l‘> ton spoke in reply to charges Prime Minister Churchill’s critics |that production was not providing the British forces with adeguate| equipment to meet the Axi§ al-] tacks. Lord Beaverbrdok also said Prime Minister made the “greatest | | possible mistake when he attacked | e |the Defense Minister and his of- | fice.” \ 4504 rs scized by the FBI after being landed on U. S. 1 the group of eight Nazi sal 1 for sabotazing American war plants, according to U. , native German who worked ni U. S, before returning to Germany in 1 3 Rabert Quirin, 34, native German, worked in Syracuse, returned (o Germany in 1939, and Edwagd John Kerling, ative German, once employed in U, 8., réturned to Germany in 1941. Below (L-R): George Jchn Dasch, 39, worked in New York and California bcfore returning to Germany last year; Heinrich Harm Heinek, 35, worked in New York before returning to Germany in 1939, and Werner Thiel, 35, who was @ Detroit toelmaker prior to return (o Germany after outbreak of war. §Nazis Open Front Near Moscow Area New German Offensive s Frustrated by Power- ful Red Attacks MOSCOW, July 1 tempt to launch a new offensive' near Gzhatsk and advance to a point 100 miles west of Moscow, has been frustrated by powerful: Rus- slan counter-attacks, the Army| newspaper Red Star reported to- day. The story said that the Seventh | German Infantry regiment lost more than 2,500 men in this battle. It said that the Russians held their | original positions when the assault ended and that the Germans ap-| parently had abandoned their Lf- fort there. Continued bitter offensives against Sevastopol and the Kursk front, with Russian counter-attacks are reported to have cost the Nazis whole companies and battalions of sh troops on the latter front, 300 n south of Moscow. three-day-old offensive has already caused huge heres with stores of mate officials. Top: (L-R) Ernest Peter Burger, = . DUTY LIFTED FOR ALLIES - COMING IN WASHINGTON, July 1—Presi- | dent Rocsevelt has signed legislation |to prevent a repetition of an inci- |dent which happened recently when | la United States customs offi on the Alaska border demanded |that Canadian Airmen and ground | reinforcements pay duty on their arms and other equipment hefore entering Alaska to remfmce de- fenses. The new law accords free impor- Lalion privileges to the armed \forces of any of the United Nations crossing United States borders. When the Alaskan customs offi- cial messaged Washington, he was told the Canadians could be classi- fied as “distinguished foreign V! tors” in order to free them from the regular customs inspections and duties. | One high official demanded the Customs man’s name, suggesting |that he would be useful after the war at a Philippine post where he could confront any new Jap inva- sion with a copy of the United States tariff act. ! Two 0Iher Saboleurs A German at- Hermann Neubauer (left) and Herbert Haupt, 22, (right) were two of eight Nazi agents arrested by FBI agents after being landed on American shores by Axis submarines to sabotage U. 8. war industries, J. Edgar Hoover, head of the FBI announced. Haupt, an American citizen who went to Germany, was arrested in Chicago. Agents said his parents, naturalized citizens, lived there. "Lame Duck”’ Makes His Report fo Congress; Is COLLECTOR'S STATEMENT When shown the above telegran Collector of Customs James J. Con- les The Kursk at PROMOTED WITH U.S. ARMY CORP EDGEWOOD ARSENAL Mary- Malakov, another in the series of |nors stated the information wa | fortifications, to widen Sevastopol not understood by him as no de the break through the naval bases’ mnor w«defense. Meanwhile, - German and Hun- land, July 1—George Guerin, whose'garian troops have launched an at- | home is in Douglas, Alaska, been promoted to the grade technician fare Service here. has tack at the center of the Eastern of Front, in the Chemical War-|announced simultaneously. the German High Command The German military report said Purchasing and passenger agent’' Rumanian troops have occupied the for the Alaska Transportation historic town of Balalava, eight Company, Pier 7, Seattle, in civil-' miles southeast of Sevastopol. ian life, Guerin was inducted February 26 of this year. e The sparrow hawk weighs only on | 1 | i ————— Most nuts are more digestible 5 when roasted fresh than if eaten raw, Full of Common Sense : including 350 tanks, the |mands for duty on equipment of the Canadian Air Forces enteril Alaska had ever been made as far as he knows or the records of head- quarters discloses. i “All our officers in Alaska,” ed Collector Conncrs, “have cpecial instruction to expedite the movc ment of all personnel and equip ment of a defense nature entering Alaska, and to date there has been nothing but the finest cooperation between American and Canadian forces.” BY JACK STINNETT WASHINGTON, June 30 — “Mr. Speaker, this is a ‘lame duck's’ rt to Congress.” With rick, three times representative from stat- those words, Luther thes district around Birmingham, Ala,, but defeated in the primaries for reelection, opened a bushel bas- ket of wit and wisdom on the floor ’nt the House the other day. His — e | BUY DEFENSE BONDS | tively, re- j Pat- | colleagues, most of whom still have | to face the voters, listened atten- | uus \Ixm said. OF C. TOMORROW laughed often and Appluud- c ed wildly. | Lieut, T. B. McKinstry, Juneau's respected Port Captain, will tell members of Juneau Chamber of Commerze| about the new dock regulations at of the first foilers in the defense the regular weekly meeting at noon | vineyard. He voted dgainst that in the Baranof Hotel Gold Room. much-misunderstood, so-called Con- Routine business affairs of the eressional *pension” T don't think “hamber also will be discussed, ac-| he holds an X-card. In spite of cording to Secretary Wilbur West-| the fact that he was up for re- l i Luther Patngk is a member of the House. He/was one oo (Continued on Page Three) BUY DEFENSE STAMPS earing In Nile Valley NABBED AFTER LANDING FROM N NAZ| SUBS ; ATTACKON ~ RUSSIA IS NEAR NOW |Militar y?;mmentalors Claim Nippon Forces Preparing for Move LONDON, July 1-—Military com- mentators assert that both Japan- ese air and land forces are con- centrating on the border of Man- choukuo and there “seems to pe |little doubt they are making their own military preparations so they may, at the chosen moment, attack | Russia.” Commentators said there has been a general drift of Japanese forces northward but they add “we do not wish to imply their preparations |are complete or an attack is im- minent.” ‘The commentators said the bomb- |ing of Tokyo by United States air- !men on April 18 has had a “very great moral effect, very much great- (er than the actual physical dam- | age.” BOMB JAPS AGAINNEAR AUSTRALIA ~ New Brifain,_New Guinea Attacked by Allied Bombers SOMEWHERE IN AUSTRALIA, July 1—Jap bases on New Britain and New Guinea were attacked by strong forces of Allied bombers be- fore dawn on Tuesday, in the larg- est raid for several days, it was disclosed today. Airmen participated in the at- tack despite thick clouds. Allied« planes bombed Rabaul in New Brit- ain, where large fires were started among Installaticns in the whavf area They said one bomber is reported to have made several runs over the target, despite anti-aircraft fire, leaving a blaze visible 20 miles through the overhanging haze, $160 Billion Unspent for War Effort Cash Balance Can Run War Effort for Two and Half Years WASHINGTON, July 1 The cash balance of the war stands at $160 billion, according to Senator Joe Byrd, who gave that estimate of the amount of money already ap- propriated but unspent for mili- tary purposes up to date He declared that the Army, Navy and other agencies have congres- sional authority to draw cut of the | Treasury cash enough to carry on the war effort at high speed- for about two and a half years. 'ROBERT COWLING BACK FROM SOUTH Robert Cowling of the Cowling- Davlin Company, has returned to Juneau after a trip to the states during which he attended the Mas- onic Convention held in Tacoma the week of June 15-19. - i BUY DEFENSE BONDS