CRISIS NEAR

Otago Daily Times, Issue 24736, 13 October 1941, Page 5

CRISIS NEAR

SITUATION IN JAPAN INFLUENCE OF RUSSIAN WAR INCREASED AXIS PRESSURE WASHINGTON, (Rec. 9.30 p.m.) Oct. 11. That the critical situation in Japan between militarists and conservatives is nearing a showdown is reflected in Washington in the virtual suspension of the peace talks which have reached a point where only a sharp reversal of Japanese attitude can give any chance of success. Informed officials say that the Japanese at present are temporising because of a desire to get a clearer picture of European developments, particularly the Russian situation. The Tokio correspondent of the United Press says that the Japanese press anti-American tirade ,<has been intensified on the basis of' German claims that Russia has been crushed. The Hochi, referring to the oil embargo against Japan, says: " Why has Japan not adopted counter-attaci:s. .Wars are not won by boasting and mere words, but. by action. What do you say to that, Prince Konoye?" The Tokio Foreign Office announced that negotiations in the United States for the reciprocal evacuation of nationals has been completed, and three ships will said for America before October 15. The arrival in Shanghai of von Stahmers and Fritz Weidemann it considered by British and American officials to foreshadow intensified Axis pressure on Japan. It is believed that von Stahmers wanted .to go to Tokio, but Prince Konoye objected because of his association with the former* Foreign Minister, Mr Matsuoka. Informed circles believe that the pair will endeavour to incite the army to resist rapprochement with the United States. The Manila correspondent of the Associated Press says it is reported from Saigon that Japan has demanded control of Indo-China's State railways and has requisitioned Saigon arsenal.

ECONOMIC VICTORY FAR EASTERN BLOC SERIOUS PROBLEM FOR TOKIO (Rec. 7 p.m.) MANILA, Oct. 11. "America is establishing a vast eastern economic pool which will mean the end of Japan's co-prosperity project," said Mr Henry Grady, special representative of President Roosevelt. Mr Grady added that the economic pool would be penetrated by the Axis only by force. It assured an AngloAmerican economic victory over Tokio. The Philippines, China,. Malaya, the Netherlands East Indies, "India, Burma and Ceylon were all pledged to increased production of strategic materials for Britain and the United States. The Axis would be completely shut off from the largest storehouse for war materials in the world. Throughout south-eastern Asia, excluding Thailand, there was. no indication of appeasement towards Jslpan. In a few Weeks China would have an effective air force composed entirely of American planes. Japan was unable to put the Burma road out of commission without a land invasion, which was improbable. The Japanese press continues to assail the United States. The Japan Times and Advertiser says: " The whole situation in the Pacific shows that the United States and Britain are building up a great menacing machine for employment against Japan. Protective steps taken or contemplated by Japan are justified by the aggressive nature of these demonstrations." The Information Bureau spokesman Mr Ishii, characterised United States participation in the British-American conferences in Manila and Hongkong as an "unfriendly act to Japan and a strange contradiction on account of the fact that the United States was simultaneously conducting negotiations with Japan/' Adults ara forbidden to eat pastry and candy, so that the limited surplus may be reserved for children.

A GREAT VICTORY BATTLE FOR ICHANG FRESH CHINESE SUCCESS (Rec. 10 p.m.) CHUNGKING,. Oct. 11. The occupation of Ichang by the Chinese forces is announced by the Central News Agency. The Japanese rear lines east of Ichang have been cut off, trapping the 13th Division. Chinese leaders acclaim the Ichang victory as China's greatest since the Battle of Taierhchwang in 1938. The victory caused wild celebrations in Chungking. A later message states that Ichang is not completely occupied, for 1000 Japanese are still fighting inside the city. The Japanese are heavily bomb-, ing Chinese troops from the air. A military spokesman said that Japanese planes dropped 300 gas bombs on Chinese troops in Ichang, killing nearly 2000. This is the first largescale gas bombing of the war. The Japanese Army Spokesman, Colonel Akiyama., admitted the Japanese withdrawal from the first lines of defence outside Ichang, but claimed that the city itself is under full Japanese control. The importance of Ichang, an historic treaty port on the Yangtse, is emphasised in London. In order to make any attack which might threaten Chungking, the Japanese would' have to advance through mountain gorges of which Ichang is a defence fortress Such an advance is thus rendered impossible by the capture of the city by the Chinese.