DARLAN'S TERMS

New Zealand Herald, Volume LXXVIII, Issue 23993, 17 June 1941, Page 8

DARLAN'S TERMS

TALKS WITH HITLEE CONDITIONS ACCEPTED THREAT OF INFLATION LONDON, Juno 16 Two conditions which Admiral Dalian accepted at Berchtesgaden are revealed by the Times correspondent on the French frontier. ! The first is that, in return for free ' trading between occupied and un--1 occupied France, he agreed that Germany control France's exports, and consequently the Franco-Swiss frontier has been closed except at Bellegarde, where German customs officials are installed. Similarly treated are the Franco-Spanish frontier and French seaports, including Marseilles. Germany is thus able to enforce delivery of French exports. The proceeds can be utilised to import through France what Germany wants, regardless of French interests. The second condition is that, in return for a reduction of charges for German occupation, Darlan agreed that payments should be in gold or foreign currencies, involving liquidation in Germany's favour of all French foreign assets consisting of shares, loans, credit balances, partnerships, buildings and land The Vichy Government, however, has not endorsed Harlan's second commitment. and Gel many now says it will ; be necessary to release the unexpended j balances of tho occupation charges. These, to the end of February, amounted to 6.'!,000,000,000 francs, and have since grown. If Germany carries out hei threat, the resultant inflation will plunge France into the deepest economic misery. SUCCESSFUL PATROLS NORTH AFRICAN RAIDS DESTRUCTION OF TRANSPORT LONDON. June 16 A force of bombers carried out heavy raids during the night of June 13-14 on the harbour at Benghazi and started many fires, states a Royal Air Force Middle East communique. Successful attacks were also made on landing grounds at Benina and Derna, where continuous lighter patrols were maintained throughout the day. Fighters also participated in daylight attacks on the landing ground at Gaza la, where two enemy aircraft were destroyed on the ground and a number of others were severely damaged. Between Gaza I a and Capuzzo British aircraft machine-gunned and destroyed 19 enemy motor transport vehicles and damaged three enemy armoured fighting vehicles. From all o|>erations five British aircraft are missing. A Royal Air Force Middle East communique states that Allied aircraft continued to support the advancing ground forces in Syria and also maintained patrols over the supporting naval units ofl the coast. Royal Air Force fighters attacked German bombers and escorting fighters, which approached British naval forces. Several hostile fighters and one bomber were damaged. A number of other hostile aircraft were attacked and damaged by Royal Air Force fighters near Ravak. Allied bomber aircraft attacked hostile troops and motor transport in the Mirgille area. Aircraft of the Fleet Air Arm torpedoed an enemy vessel near Beirut. FORMER BANK CLERK ADVENTURES AS PILOT NEW ZEALANDER AT TOBRUK LONDON, June 10 A former bank clerk from New Zealand, now serving as a sergeant pilot in a famous fighter squadron in the Western Desert, is in hospital alter a series of spectacular escapes in the oast two weeks. "In my first adventure, 1 found myself landing on the ground with my aircraft destroyed," he said. "The Germans. armed with 'tommy' guns, were only halt a mile away. I was got out of that by squeezing into the cockpit of a Hurricane with another pilot, who flew me 360 miles to safety. "A day or two after my return I was ground-straffing an enemy landing ground and had set fire to two German aircraft when a couple of Bren gun shells hit my radiator Fumes came into the cockpit, and two Messerschmitt 109's were hot on my tail. One got a burst into my aircraft, and I began to lose altitude. The elevator control began to misbehave, and 1 was flying along the tops of cliffs trying to shake off the Germans when I saw the outer defences of Tobruk. "Just as safety seemed to be within reach my aircraft flattened out into a j field and burst into flames, which were ! licking round my legs before I could j clamber out, I thought I was still in j enemy territory and dragged myself to a cave, where I lay for hours. A party of English troops out on a skirmish took me into Tobruk." ITALIANS RETALIATE "FREEZING" OF ASSETS CENSUS OF PROPERTY LONDON, Juno 10 A Rome communique announces that Italy has decided to retaliate against the American action of freezing Axis assets and has ordered a census of American property and goods throughout Italy with a view to similar action. The order issued by President Roosevelt will involve assets estimated at nearly £1,000,000,000. This will have the effect of depriving Germany and Italy of access to free exchange. The opinion is expressed that this will deprive the Axis Powers of the means whereby they can pay for sabotage and espionage undermining tho security of the Western Hemisphere. President Roosevelt's order, which lias been given in view of the unlimited national emergency recently declared, is the logical consequence of the earlier decision to freeze United States assets in some of the occupied countries. The earlier orders affected the assets of 14 countries of an estimated total value of about £1,125,000,000. Tho countries covered by the extension of the order to all occupied .areas aro Albania, Austria, Czecho-STbvakia, Danzig and Poland. The main purposes of the new order may bo summarised a# (1) to prevent the use of financial facilities in the United States in ways harmful to national defenco and other administration interests, (2) to prevent liquidation in the United States of assets looted by duress and conquest, and (3) to help curb subversive activities in tho United States. GERMAN PLANES CRASH LISBON, June 16 Three German warplanes and one unidentified machine crashed in the Portuguese village of Amareleja. Two of the German aircraft were ablaze before they hit the ground and the other caueht fire when it crashed.