Evening Star Newspaper, October 31, 1937, Page 4

A—4 ww ; THE SUNDAY STAR, WASHINGTON, D ENGLAND FAVORS JAPAN MEDIATION Persuasion of Tokio Will Be Britain’s Goal at Brussels. By SIR ARTHUR WILLERT. LONDON, Oct. 30 (N.ANA)— Persuasion rather than coercion as a means of stopping the “Far Eastern War will be the British policy at the Nine-Power Conference at Brussels. Japan’s piratical brutality will probably send some countries these in a mood to demand economic sanc- tions, but it is unlikely that the in- structions given Anthony Eden, the British foreign secretary, will allow him to encourage such demands. It is expected, on the contrary, that the British delegaticn will suggest media- tion as the most feasible lm; of ap- proach. This is not because there is any disposition here to underestimate the gravity of the issues at stake in China. Still less is it due to sympathy with Japan. Pro-Japanese feeling here, which impeded Anglo-American co- operation during the Manchurian crisis, has been Japan's destruction of the Washing- ton treaty for limitation of naval armaments, and, partly, by her pres- ent action. European Situation Rules. ‘The British attitude is dictated by the European situation. It has never varied since the Japanese started their offensive last summer. It is based on the belief that to be overextended is as bad for a nation in time of dip- lomatic stress as it is for an individual in time of financial stress. The great danger of the moment is outbreak of another world war in Europe. It is, therefore, Britain's duty to herself and to the world to concentrate upon prevention of war in Europe, and it is feared that diplomacy unsupported by effective force in these days of lawless aggression is useless, Eden's supporters explain his fail- ure over Ethiopian sanctions, and, to some extent, the failure of Spanish non-intervention, by arguing that it would have been different had the British armament program reached in 1835 and 1936 the stage at which it will be in 1938. Now that progress is being made with that program they feel that, if Britain is to be a | factor for peace in Europe, she must keep the results of her armament at home. In the same way, it is believed here that any effort to coerce Japan by sanctions or other means would be worse than fut unless backed by force. British experts who have been preparing plans for the conference made an exhaustive study of the feasability of economic pressure upon Japan, Obviously, Japan is very vul- nerable in that respect. would probably stop her fighting in China as successfully as it is now known they would have stopped Italy in Ethiopia. But it is one thing to propose sanctions and another thing to apply them. Weaker Countries Periled. The harder sanctions would hit Japan, the more likely would Japan be to hit back. Even if she did not openly attack British and American interests in the Far East, there would be the question of the security of weaker countries which would be in- volved in sanctions. might, for instance, try to seize the | oil and rubber producing possessions | of Holland in Asiatic waters. Japan has the third biggest navy in the world. Are the United States and| Great Britain, owners of the two big- | gest navies, prepared to fight to| protect Holland and perhaps other small countries, even if they were not called upon to use force to make & blockade effective or to protect their own interests? That, as London sees it, is what the question of economic pressure comes down to. Are the United States and Britain prepared to fight what might be a serious war for the in- tegrity of China? The British an- swer, if only for the reasons mentioned above, is in the negative. London would, of course, be pre- pared to support the United States in a coercive policy if Washington under- took to bear the brunt of it. But that again is not believed to be prac- tical politics. It is not believed Amer- ican public opinion is any more ready than British public opinion to fight to gave China from the Japanese. Conference May Be Premature. Hence the stress which is being laid here upon the probability that the Brussels conference will confine itself to an effort at mediation. Not that there is much confidence that even this more modest goal will be reached for the present. It is feared that the League of Nations, in suggesting the conference at this early date, may be found to have acted prematurely. Sooner or later the Japanese may be ready for mediation. In spite of their recent successes they are still far from overthrowing the Chiang Kai-shek government, and they are infinitely further from domination of China, which is considered here to be the ultimate aim of the militarists who control their policy. Nor is there any certainty that China is ready for compromise. Ac- cording to information reaching Lon- don, Japanese pressure is consolidat- ing the country to a remarkable de- gree. Even the “red” areas in the center are said to be concentrating, not on Communism, but on co-opera- tion ®ith Nanking against the in- vaders. The Brussels meeting has not in fact so far aroused high expecta- tions in London. (Copsright, 1937, by the North American Newspaper Alliance, Inc.) SURPLUS PROFITS TAX HELD BRAKE TO HIRING Cross-section Questionnaire As- gerts Lifting Would Permit \ Plant Expansions. By the Assoclated Press. NEW YORK, Oct. 30.—The National Association of Manufacturers declared today a poll of a representative cross- section of manufacturing in the United States by the association indicated employment in the manufacturing companies “is being seriously affected by the surplus profits tax.” killed, partly by | Oil sanctions | Ehe Japanese | Amid the awful ruins of W defies the spirit. oosung these pictures of Japanese dead have come out of the war area, as they Japanese soldiers cremate one of thei Japanese Cremate War Dead r dead. Few believe to die for one’s country —Copyright, A. P. Wirephoto. ROOSEVELT URGES STRESS ONPAGTS People’s Mandate Deputies | Asked to Emphasize Treaty Sanctity. | By the Associated Press. HYDE PARK, N. Y, Oct. 30— President Roosevelt urged “flying deputies” of the Peoples Mandate Com- | mittee today to emphasize on a 17,000- %mxle all-America peace flight that | treaties are not seraps of paper, but | are meant to be kept. | The President expressed the belief | | that progress in the Americas toward | peace during the last four years has had a very great effect in other parts of the world. He said the effect had | been perhaps greater than would be | realized from reading of the bellig- 1‘ erent attitude of some other countries. | The people all over the world are | beginning to say to themselves, the | President asserted, that in the Western | Hemisphere there is the most inter- | esting thing that has ever happened— | a whole continent has abolished war | and has provided the machinery so | any question between nations may be | peaceably settled. | The Americas also, he said, have set an example to the rest of the world in treaty adherence. Seek Publicity for Treaties. Mr. Roosevelt received the Peoples Mandate group a few hours before | four representatives of the organiza- tion set out to urge republics in Latin America to ratify the anti-war and commercial treaties that came from the 1936 Buenos Aires conference. They also hope to give such publicity to the treaties as to promote popular sentiment for ratification and ad- herence. The Buenos Aires conference was called and attended b, Mr. Roosevelt, Since its adjournment nearly a year ago, the United States, Ecuador, Santo Domingo and Nicaragua have ratified the various treaties proposed. Vene- zuela has ratified some of them. Six- teen American nations have not yet acted. The deputies, who left here to start their southward flight from Newark tonight, are Mrs. Burton W. Musser of Salt Lake City, only woman mem- ber of the United States delegation to the Buenos Aires conference; Mrs, Ana del Pulgar de Burke of Wash- ington, D. C,, a native Chilean; Mrs, Enoch Wesley Frost of Texarkana, Ark, and Mrs. Rebecca Hourwich Reyher of New York City. Presented by Dr. Woolley. They were introduced to the Presi- dent by Dr. Mary E. Woolley, presi- dent emeritus of Mount Holyoke Col- lege and chairman of the Mandate Committee. A large delegation of members of the committee, including several men, met the flying deputies here and were present for the interview with the President. Mr. Roosevelt said he was working with the Maritime Commission to in- augurate a steamship line down the east coast of South Africa, so travel between this and the Latin American ’L‘Oumriu would be speedier and more comfortable than present facilities. He said he thought that next year there would be such a new steam- ship service. Deals With American Situation. Dr. Woolley, who talked to newsmen after the delegation’s visit with the President, said the People’s Mindate organization was devoting itself to the American situation now but hoped to extend its work to the rest of the world. The flying deputies will reach Miami tomorrow, accompanied by Miss Jac- queline Cochran, the flyer. From Miami the deputies will fly to Ha- vana. _After meeting the peace deputa- tion the Presideny was visited by THE OPENING 526 12th candy. Harry L. Hopkins, the Works Progress | administrator. Secretary of the Treasury Morgen- thau went to his farm &t nearby Fishkill this morning after staying overnight at the Roosevelt home. Mor- genthau and Undersecretary Magill worked with the President on the pudget last night. White House aides said there would be no statement from the President or Morgenthau at this time on that conference. Daniel W. Bell, the budget director, will advise with Mr. Roosevelt on the budget Mon- day. BRITAIN SEEKING AID OF PORTUGAL Use of Naval and Air Bases | Is Sought to Protect Empire Links. By JOSEPH DRISCOLL. LONDON, Oct. 30.—Looking ahead to the collapse of the Non-Interven- tion Committee and the eventual tri- umph of Gen. Francisco Franco’s revo- lution in Spain, the British govern- ment engaged this week in important | conversations with the government of Portugal with a view to making use of the Portuguese naval and air bases to protect the British post at Gibraltar and the British Imperial highway through the Mediterranean to the Suez Canal. Portugal is Britain's oldest ally and the British think the time has come to call upon her to fulfill her obliga- tions. Their treaty of friendship and military assistance dates back to the 14th century, when Portugal was| a great naval power and cut more of a figure in the world than she does k today. Even so, Britain thinks Por- tugal may yet prove of value in keep- ing the Mediterranean open and checking the Italianization of Spain and the Balearic Islands. Feel Communications Periled. Prior to the outbreak of Franco's rebellion, Britain enjoyed dominant | influence in Spain and Portugal and fiever feared for the safety of her im- perial lifeline through the Mediter- ranean. Now, with Premier Benito Mussolini and Chancellor Adolf Hit- ler gaining a foothold in Spain, Span- ish Morocco and the -Balearics, the British (and the French, too), feel that their Mediterranean communica- tions are jeopardized. In the event of a general Mediter- ranean war the British fleet if bound for Spanish ports would have all the more occasion to put in at Portugal to find harbor, so the British govern- ment has initiated conversations at this juncture to ascertain to what ex- tent they may expect co-operation from Portugal. The conversations are being car- ried on in London between the for- eign office and the Portugese Em- bassy. If sufficient warmth of friend- ship rekindles then a “good will” mis- sion of diplomatic and military experts will be dispatched to Lisbon to work out the practical details of adapting a 14th century alliance to the present problems. News Embarrassed Whitehall. Whitehall was embarrassed at the leakage of the news that Britain and Portugal were having talks with. & view to discovering means of closer re- lations and contacts between the two defense services. The obvious mean- ing which informed observers read into the news was that the British were anticipating collapse of the non- intervention system and further France victory, and that the British knew that Mussolini's position in the Western Mediterranean was becoming more and more a menace to the British Empire than ever before. With this theory, the British have noted the policy of their supposed allies, the Portuguese, during the Spanish civil war, that policy being one of marked sympathy toward Italy, Germany and France, even at the risk of alienating Britain and France, (Copyright. 1937, by New York Tribune, Inc) ANNOUNCING OF ANOTHER St. N.W. ; Where you can gét MORE of Washington's finest . AT 50C Ib. Made fresh daily in OUR OWN KITCHENS by the FAMOUS RECEIPT of MARY DALY and using only the FINEST BARCELONA MADE CAPITAL OF SPAIN Premier Negrin Flees There From Valencia to Set Up Headquarters. | By the Assoctated Press. MADRID, Oct. 30.—Barcelona be- came the capital of Spain today when Premier Juan Negrin flew there from Valencia to set up new headquarters. Most of the ministers will begin work in Barcelona next week. It will take several weeks, however, for a complete transfer of the government, and during that time government af- fairs will be conducted from both cities. The foreign office was expected to move over the week end and the for- eign missions were to follow shortly. | President Manuel Azana was expect- ed to move soon. Valencia will continue an impor- tant city of government Spain, how- ever, for it must furnish supplies to beleaguered Madrid as well as the central and southern fronts Meanwhile, steady but unspectacu- lar fighting west of Madrid was slowly endangering insurgent occupation of University City and more distant heights commanding the city from the south and west, Rebels Reported Trapped. HENDAYE, Franco-Spanish Fron- tier, Oct. 30 (#).—Spanish government | communiques tonight said a group of | insurgents had been isolated atop .lf'nded private interests. hill south of Madrid, with government machine guns sweeping all approaches, The sharp engagement took place at Cuesta de la Reina, 20 miles from Madrid. British Ship Reported Sunk. VALENCIA, Oct. 30 (#).—The north- ern coastal defense tonight the Spanish ministry of defense that the British freighter, Jean Weems, was sunk this morning in the Med- iterannean Sea by insurgent air- planes, which dropped 15 bombs. The vessel was 16 miles off the | port of Gerona, en route from Mar- | seille to Barcelona with a cargo of wheat and condensed milk when the bombing occurred, the English cap- tain said. PARTY SPURS ENROLLING VIENNA, Oct. 30 (#).—The Father- land Front was enrolling new mem- bers by the thousands tonight and of- | ficials estimated the party would have & membership of 2,400,000 by Novem- ber 1, the deadline for registration. Party leaders said the new total membership would make the Austrian Fatherland Front much stronger proportion to population than the Nazi party in Germany or the Communist party in Russia notified | in | OCTOBER 31 1937—PART ONE. HITLER AT CRISIS WITH 4-YEARPLAN Schacht Attempt to Resign Forces Fuehrer to Make Vital Decision. By SONIA TOMARA. BERLIN, Oct. 30.—One year after the beginning of the four-year plan which should liberate Germany from imports of foreign raw materials, Chancellor Adolf Hitler and his as- sistants in the economic fleld are faced with a turning point in their line of action, The crisis in Germany's econ- omy has been precipitated by the state- ment Dr. Hjalmar Schacht made in BerTin in the middle of the week to the effect that he was through with the ministry of economics and had given his resignation to Der Fuehrer. (Associated Press dispatches from Berlin yesterday indicated that Reichsfuehrer Hitler would not accept Dr. Schacht's resignation and would require him to continue as minister for economics.) Dr. Schacht has indeed been through since last August when he informed Chancellor Hitler that he could not be responsible any longer for a policy of which he completely disapproved. Hitler then did not accept his resigna- tion. Dr, Schacht, however, has re- fused since that time to go to the ministry of economics and has con- fined his activity to the Reichsbank, of which he is president. Valued Schacht’s Reputation. Hitler, who disliked to make dras- tic decisions in inner politics, wanted to keep Schacht as nominal head of economics because of his reputation abroad and let Col. Gen. Wilhelm Her- man Goering make the general staff colonels go ahead with the four-year plan which Dr. Schacht considers to be ruinous for Germany's economy. The situation has now come to & point where such co-operation is ex- tremely difficult. At this stage of the four-year plan, when sums calcu- lated to be about 8,000,000,000 marks | have been sunk into new plants for “Ersatz” goods that should replace for- eign imports, when the equipment of mines that can yield only a very poor grade of iron at a high cost has been carried far ahead, it is hardly possible for Hitler to go back to a regime of more normal economy on which Schacht insists. Not only Col. Gen. Goering but the men organizing Germany's military forces, meaning the whole power of the Reichswehr, which for Hitler is vir- tually identical with Germany, are be- hind the four-year plan, and what it is doing at any cost. These men | probably realize that the four-year | plan lowers the standard of living of | the German people, but the Nazi creed | demands sacrifices for the country’s | | good. The example of Russia during | the five-year plan there has shown | | that the endurance of peoples can go | far. Wealthier Classes Hit. Germans are disciplined and indus- trious and their leaders know they can bear much more before they are through. But this time it is the wealthier class of Germans which is bound to pay to make Germany self- sufficient. Dr. Schacht so far has de- From now on all economic experts agree these interests more and more will be neg- lected by the state. Funds will be drawn from the big industries which will have to contribute to Goering's enterprises—which Schacht is reported to consider irrational and extrava- | gant. | It should not be thought that the | | four-year plan has been unsuccessful 30" the contrary, reports from impar- | tial sources indicate that the results ! achieved over one year are very satis- | factory. The Germans have done | wonders with synthetic rubber, whose cost first was four times the cost of the natural product. Production is | | gradually being made cheaper and the quality of artificial rubber for tires is | excellent. It is believed to be some | 10 per cent better than natural rub- ber. Synthetic 6il is said to supply over 25 per cent of the general need | Shocks Nazis PLACES JEWISH WREATH ON SOLDIERS' TOMB, ISADOR GENNETT, Amedican Legionnaire from New York visiting Berlin, placed a wreath bearing the name of a Bronr (N. Y.) branch of the Jewish War Vet= erans Association on the me- morial to Germany's war dead on Unter den Linden. Military authorities, who had provided him with a guard of honor for 4 the ceremony, detained him for three hours, questioning him about his religion and antecedents. Then, at a loss what to do about the matter, they allowed him to go his way, and did not molest the wreath. o (ORI OSSR and its mixture with German by-prod- ucts and Rumanian oil may permit | Germany to do completely without | American oil. Textile Progress Unusual. Progress with textiles is reported to | be unusual. Thus the results of thei first year show that Germany may become self-sufficient. But Schacht asks at what price. He and some other economists argue that | it will be only a temporary self-suf- | ficiencyy because the supply of some German raw materials which serve to make synthetic goods will be ex- hausted in a comparatively short | time. The iron mines which Goering has opened at a great cost are said to con- | tain ore for only a few years. In the | view of the more conservative econ- omists who see Germany's position over a period of years, the four-year | plan is to make this country, happier | for the future. But the policy of | “wehrmacht” (defensive might) is supposed to prepare Germany for the | emergency of war, and directs to this | purpose all the resources of the coun- | try. Apparently, in the opinion of the | German general staff, the possibility | that Germany might do without war | is negligible and can be overlooked. | (Copyright, 1937, by the North American | Newspaper Alliance, Inc.) . Natives Being Listed. More than 2,000,000 natives of South Africa are being listed in a kind of “domesday book.” Johannesburg com- pilers say it will give the number of blacks and the sex distributions in each municipality, the number em- ployed in each occupation and full | particulars regarding all land owned | by natives in cities. CHAPMAN handles the best grades of Pennsylvania ANTHRACITE ond OLD GOLD AND SILVER will bring you ; BABH TAT.0 £ "~ Maenson Coats b Yy Joseph May & Sons, Leeds THE STAMP OF ENGLISH CRAFTSMANSHIP The skill of famous looms and generations ence in the tions of English tailor- ing give to a Maenson Coat from authentic and distinction. COAL b J. EDW. CHAPMAN | Coal Fuel Oil 37 N St N.W. North 3609 Agent Wayne Oi¥ Burner Scotland’s of experi- best tradi- England character NEW CABINET FOR PERU Gen. Ernesto Montagne Succeeds Himself as Premier. 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