Warring Powers Bitter Competitors for Supplies of Southeast Europe Nazis Put Pressure On Neutrals as Allies Back Bids With Gold

Italians Also Make

Unprecedented Drive For Trade by Barter

By the AiBOciited Press. BUDAPEST. Sept. 12—Europe's

warring powers are engaged in a

trade struggle for vital supplies from the southeastern corner of the con-

tinent. Britain's blockade of German

ports, threatening to cut off the flow of materials from overseas, and Ger- man attacks on British shipping have put three questions to the neu-

tral nations of the southeast. They are whether to:

1. Fulfill old German contracts, ©r enter into new contracts to ship goods to the Reich with the

possibility they never may be

paid. 2. Sell to England and France

for gold: or

3. Accept offers from Rome to barter their products for Italian goods. Just how to answer these ques-

tions was reported reliably today to

have been the main issue at a con-

ference of railroad officials from

Hungary, Yugoslavia. Rumania and

Bulgaria at Belgrade. There a list ©f German demands was said to have been read.

The Germans were insistent that ©11 old contracts be kept, and all j normal trade channels with the Reich be kept open.

Allies Offer to ray in Gold.

French and English buyers ap- peared with large orders for grain, metals and other war-time necessi- ] ties, for which they offered to pay i

In gold. The Italians also made an un-

precedentea oia ior uaue vum neu-

tral countries. Reaction of the southeastern na-

tions to these rival trade demands

appeared divided. The first con-

crete answer, however, came today with announcement in Bucharest that large quantities of cereals had been sold to British, French and Netherlands importers. The sales cent prices upward in some cases as

much as 50 per cent. Yugoslavia also took a stand with

the announcement that if Germany wishes goods, she must send her

own freight cars and pay in gold. What the situation means to Ger-

manv is indicated by recent import statistics. One of the Reich's prime wartime needs is oil. but if the blockade cuts off overseas sources.

Germany must look to Rumania, the

only big oil-producing neutral on

the continent, for her supply. Germany Needs Vast Supplies. Germany's peacetime oil imports

totaled about 4.095.000 metric tons

annuallv. Her war needs are esti- mated at 8.000.000 tons, yet Rumania

has been exporting only 5.577.000 tons, and that figure constantly is

decreasing. Other goods that Germany wants

from this area include beef. pork, corn, milk, eggs, butter, cheese, iron

ore. copper, lead and antimony. The

total output of these products in

Southeastern Europe, however, could

not meet Germany's peacetime needs, much less her wartime de-

mands. The question of what Germany

may do to head off enemy attempts to corner the all too meager flow of

supplies from the southeastern na-

tions is considered vital here, be- cause upon it may depend the ques- tion whether war comes to this area.

Italy, in Strategic Spot, Battles for Raw Materials

By JOHN T. WHITAKER. Chicago Dally News Foreign Correspond»nt.

ROME, Sept. 12.—Hopeful that this country can continue to be neu-

tral in the midst of a flaming con-

tinent. the Italians are studying means to And raw materials, in- crease production and improve their financial position.

Germany, Great Britain and France must lose most of their ex-

port trade, but demands will in- crease rather than slacken, and

Italy feels that she is in a strategic position to replace them in several markets.

The resumption of shipping to

North and South America is only the beginning for Italy feels that she has a good workshop and that if the means can be contrived to get raw

materials the country can multiply production and commerce.

The Italians are hopeful, there- fore, that countries like the United States will extend credits. Italy al-

ready enjoys a modest cotton credit with the United States and also im-

ports metals, scrap iron and ma-

chinery. It is hoped, naturally, that all this can be increased with the extension of sizable credits.

In this connection, it is learned that Great Britain and France see

no reason why, provided Italy's neutrality becomes certain, Italian factories should not produce for the

allies who are able and willing to

pay in gold. Italy today ships to

Britain citrus fruits, tomato paste, cheese, gloves and hides, and to

France, vegetable products, sulphur, and citrus fruits, all products which will still be needed. In addition, Italy could produce many other things for them, notably cotton and woolen goods.

Naturally the British and French would expect certain assurances be- fore they built up a substantial commerce of this sort, but the fact that conversations have gone so far indicates how busy diplomacy has been during the first 11 days of the war.

1 lie itaunuo OiC nmwc, VI

that extension of credits by coun-

tries like the United States will in-

volve a certain risk. If America feels that Italy is likely to become Involved in a general conflagration, she might hesitate and it is signifi- cant, therefore, that the Italians are so hopeful of what the future holds for their trade and commerce. (Copyright. 1939, Chicago Dally News. Inc.)

Grape Juice The orange juicer with a recep-

tacle where the half orange is put and a handle is pulled down, squeez- ing the fruit while the juice trickles through below into a glass, may also be used for squeezing the juice from grapes. Put the fruit in just as you do the

orange^

LONDON.—KING AND QUEEN TOUR SHELTERS.—King George and Queen Elizabeth, carry- ing gas masks in khaki containers, are shown in this cablephoto passing the sand-bagged walls of an air-raid shelter in South London. The King wears the light blue uniform of a marshal of the Royal Air Force. —Wide World Cablephoto.

White House Denies Prompting Chains on

War News Policy Broadcasters to Avoid 'Undue Suspense' and Disclose Censorship

By the Associated Press,

Agreement of the three major radio chains to attempt to avoid "undue suspense" in broadcasting war news was said at the White House today to have been under- taken without Government prompt- ing.

Stephen Early, press secretary, said the policy decision, announced last night by Neville Miller, president of the National Association of Broadcasters, "was not prompted by Government suggestion.”

The broadcasters—National, Co- lumbia and Mutual—asserted they would be "temperate, responsible and mature" in their dissemination of war news and seek to prevent "horror, suspense and undue ex- citement.”

"What I like about that.” Mr. Early said, "is that the initiation of the action is wholly theirs.”

"They drew up their own state- ment.” he added, "and submitted it to the Communications Commis- sion. and the reports I get are that the meeting was 100 per cent har- monious.”

I'rges Press-Radio Harmony. The White House secretary said

the administration would like very much to see "parity” between press and radio in the collection and dis- tribution of war news. This, he de- clared. would be in harmony with President Roosevelt's neutrality proclamation.

He reiterated that the adminis- tration wanted no censorship of either press or radio.

“There has been no increasing suggestion of censorship from the Government.” he said. "In times like these, fellows who are opposed to plans of this Government pull out their bogeymen and set them up.

"That's all I can see that can

possibly be true regarding radio and press censorship.”

Announcement of the broadcast- ing policy came after a conference of radio officials with "Chairman James Lawrence Fly and other Fed- eral Communications Commission authorities.

IWI9IU1U jit n|irciurui. Among the provisions were these: Efforts will be made to avoid “hor-

ror, suspense and undue excite- ment.”

Broadcasters will try to be “tem- perate, responsible and mature ir selecting the manner in which thej make the facts of war and its at- tendant circumstances known to thf public.”

Radio audiences should be clearlj informed whether news is censored

Broadcasts from Europe should be by Americans as far as possible.

News broadcasts will remain ir strict control of the broadcaster re-

gardless of whether sponsored 01

unsponsored. Mr. Miller said the agreement was

reached in New York last Thursday but had not been made public until Chairman Fly of the Communica- tions Commission had been informec of it.

He added that while the agree- ment applied primarily to the Na- tion-wide networks, the genera: principles involved would be pre- sented to the N. A. B. directors at a

meeting in Chicago tomorrow. Mr. Fly expressed the opinion thal

radio “by and large" rendered a pub- lic service by broadcasting news anc

comment about the war.

He added that all parties agreec to continue to give consideratior “to the most effective means of as-

suring broadcast operations to pro- mote the public interest."

U. S. Curtails Broadcasts Due to British Censorship

LONDON, Sept. 12 VP).—United States broadcasting companies have curtailed their trans-Atlantic broad-

| casts from London of European wai

'Hateless' War on Germany Is Waged by British

By THOMAS K. HENKY, Star Staff Correspondent.

LONDON, Sept. 12.—This great childless city has by now almost ad-

justed itself to the strange ways of life forced upon it by war con-

ditions. There is perhaps an ex-

aggerated kindliness, for the Eng- lish people are trying hard to carry

on a hateless war. Everybody seems

determined not to let the war crack his nerves.

This spirit is especially notable

in such a place as the famous old

Bow street police station in Covent Garden, where aliens are being regis-

i tered. The work is done by ordinary policemen and is a rather compli- cated clerical job. The aliens are

former Germans and Austrians, most of them bitter against the Nazi regime and terribly worried about their own futures. The police spend lots of time comforting and advising them. The same is true at all the transportation agencies.

Pray for Enemies. On Sunday Great Britain prayed

for its enemies, prayed while carry-

ing gas masks. From the altar of Westminster Abbey, surrounded by the graves of the most renowned of the British race, to pulpits of little country churches of all de- nominations. the note of the ser-

mons was the same prayer, that reason might prevail in Germany.

"It may well be.” declared Canon W. Thompson Eliott at the morn-

ing services in Westminster Abbey, "that this war will not be won on

any Datueneia. dui in me nearus

of men.” And he likened the Hitler regime to "that old serpent, the devil.” of the Book of Revelation.

Thus England answered the hymn of hate chanted across the Rhine Saturday by Field Marshal Goering. In few churches were there prayers for a victory at arms or any nationl self-glorification. Both Canon Eli- ott and the Dean of St. Paul's urged their congregations not to give way to an unreasoning hatred of the German people.

A Psychological War. Many recent visitors to Germany,

it was stressed, have described the vast amount of anti-war feeling there which has been suppressed, but not killed. It is this, the preachers felt, that may end the Nazi regime. This is the great battle being fought in the hearts of men.

The nearly unanimous note of the clergy apparently was not due to

any prearranged plan, but was eacn

man s individual expression of the sentiment of the average man and woman on the street. It is the same

1 spirit that has found expression in i dropping pamphlets instead of bombs on enemy villages—a con-

viction that the real battlefield is to be the mind of the German na-

tion. A victory in that battle, the average Englishman feels, would be of far greater strategic importance 1

than a major naval or military victory and might put an end to the war in short order.

Nowhere yet in the British press or pulpit or in ordinary conversa-

tion has a word of hatred been

expressed for anybody except the | Nazi chief and his close associates.

developments during the last week. Apparently this is partly due to the small amount of news officially re-

leased for publication. Fewer commentators are heard on

the international broadcasts. The script for news or comment

must be submitted to a censor at the British Broadcasting Co.—usually a

regular member of the B. B. C. staff assigned as a censor. He reads and returns it to the speaker with any suggested changes, then listens to the broadcast.

The radio censors look mainly for military information which might be useful to the enemy.

Paris (Continued From First Page.)_

Germans are expecting a big French drive soon.

Baden is near the point where

French territory elbows into Ger- many, 90 miles north of Basel. The

.development eased the Swiss worry that French or Germans might try to cut through a corner of Switzer- land to outflank the other.

Thousands of Swiss soldiers, it was

learned today, have returned tempo- rarily at least to civil life—the first official sign of Switzerland’s grow- ing conviction her neutrality will be respected by the two warring neighbors.

It was estimated the first batch of soldiers to get leaves numbered 15,000. mostly dairy and agricultural workers Nevertheless, well over 400,000 Swiss soldiers still are guard- ing every one of the confederation's many railroad tunnels and bridges.

Mobile Equipment Concentrated. Another indication the French are

about to open an offensive against main forts of the Siegfried Line was seen in reports of a concentra- tion of mobile equipment at certain points of the Maginot Line.

Such fast equipment has been of little use to the French so far in the slow, methodical maneuvering

I for position which has marked the war thus far. It would play a major role when and if the French broke through the main Siegfried forts.

In preliminary thrusts and coun-

ter-thrusts, as pictured in advices reaching Switzerland, the French moved up as much as 4 miles and captured four German towns— Brenschelbach, Uttweiler, Peppen- kum and Medeisheim, northwest of Bitche—while small German patrols crossed into French territory for the first time.

German Penetration Short-Lived. The German penetration of

French territory, however, was said to have been short-lived, the Ger- mans retiring to their own side of the frontier after furious clashes. This action occurred just east of Saarguemines and southeast of Saarbruecken.

With the left flank pinned on the great Moselle forts of the Maginot line and the right flank supported by the huge Bitche fortifications. French forces struck out all along the northern section of the western front, meeting German counterat- tacks.

Finns Asked to Help Safeguard Neutrality By the Associated Press.

HELSINSKI, Finland, Sept. 12.— Foreign Minister Eljas Erkko broad- cast an appeal yesterday to all Finns to help the government safeguard Finland's neutrality, to avoid any word or deed that might be mis- understood abroad.

He said Finland will try to main- tain trade relations with warring nations on an identical basis, favor- lng neither side.

1^.^__

Germans Favored By Weather and Polish Tactics

Speed of Nazi Drive

Upset Defenders' Plans For Protecting Country

By COL. FREDERICK PALMER. Here in Washington you are

closer to the war in a military and political sense than anywhere else in the United States. The military comes first. For all international political speculation and views are

subject to the latest news from the battlefields.

Not the least interested is Gen. Pershing, whose soldiers of the army of occupation marched to the Rhine over some of the ground where the French are now fighting. He is kept informed by Gen. George C. Mar- shall, chief of staff of the Army, one of the experts in operations upon whom he relied as an adviser in the battle of the Meuse-Argonne.

It is not for Army and Navy offi- cers to express any partisanship with one side or the other in the war. Their part is professional silence in detached professional out- look as they read the latest bulletin into a map on the wall with the aid of their professional knowledge and instinct. Their aim is to learn all they can from the progress of the war that will be of value in our own defense. With all zeal, they are pressing their efforts for both rapid and sound fulfillment of the preparedness program passed by the last session of Congress.

Weather Favors Germans. What has most challenged mili-

tary opinion has been the speed of the German operations in Poland. Both the weather and Polish tactics have favored the Germans. They got the jump on the Polish army's plan to retire to defensive positions, the better to arrest the major blow.

It was anticipated that the Poles would take advantage of the natural mountain defensives to prevent any drive by the Germans through the Carpathians in the south. Possibly the Polish staff did not take the danger of a drive in that direction seriously enough or trusted to too small a force, underestimating Ger- man numbers.

Not only did the southern drive, in conjunction with the drive from East Prussia to the north, mean two flanking movements in the pinch of envelopment, but the southern drive has already captured, accord- ing to German reports, or, in its progress, is close to the plants upon which the Poles depend for their arms and ammunition. The Ger- mans threaten their plane-making plant near Warsaw, and they must have lost some of their plants for the making of cartridges for their soldiers’ rifles. In their fear of Russia, and trust in the now obso- lete pact with Germany, they placed their munition plants too far from the Russian bordei.

Poles Situation Desperate. After having seen a wall map a

few hours ago. as I check off the latest German bulletins on the map I carry with me. at this writing, the situation of the Polish Army does seem desperate. The southern drive is on the banks of the Vistula, the northern has evidently a lodgment on the Bug. The interior line, ap- proximately a semicircle, upon which the Polish plan depended for defense, has become a loop, a

corridor with the Germans on both sides. Now the Germans are press- ing on its western end. too.

The taking of Warsaw, which will be within the envelopment, is only- incidental in the evident German plan to surround the Polish Army and force such a wholesale surrender as at Sedan. Any further with- drawal for the Poles will be fatal. They are in for a last-ditch fight. If they can open their way for re- treat through the bottle neck east of Warsaw, it must be to the south- east toward the Russian border—on the flank of the German drive from the south—or into the bogs of the Pripet Marshes.

A military miracle may happen, thanks to Polish courage, tenacious to the last shot in their rifle clips. The German mechanization may have outrun supporting infantry and artillery. It may be that Ger- man bulletins are far wide of their

LODZ, POLAND. — FIGHTS TRAPPED POLES—Gen. Jo- hannes Blaskowitz, who is

heading a German push aimed at 60,000 Poles caught in the retreat from Poznan. He is a

former Czech general who was

given a post in the German

Army. —A. P. Wirephoto.

fairly approximate military truth- fulness. It is upon them we have largely to depend. The fact that the Poles neglect to give their posi- tions suggests their confusion and is a factor that cannot be disregard- ed in a measure of substantiation of the German claims. • Released by North American Newspaper

Alliance. Inc.)

Cruise on British Ship Becomes Adventure

On a British cruise ship in the At-

lanta in wartime is no place to spend a vacation, according to Mrs. John Bohrer. secretary to Representative Chiperfteld. Republican, of Illinois, who returned to Washington yester- day from Nassau.

Hitler's forces had marched into Poland when Mrs. Bohrer walked up the gank plank of the British ship Lancastria in New York for a long- planned vacation cruise to Nassau. But neither she or the 450 other passengers aboard had any idea that within a short time Great Britain would be at war with Germany or

that Hitler's U-boats might swing into action on the high seas.

The Lancastria was several hun- dred miles off the Atlantic coast when she received word by radio of the outbreak of hostilities in Europe. Immediately. Mrs. Bohrer said, port holes of the ship were blackened and a zig-zag course was followed to Nassau.

In complete darkness. Mrs. Bohrer explained, the ship plowed through the Atlantic, arriving at Nassau too late to allow more than 3 hours of a scheduled 18-hour stop-over. The return trip, she said, was made under the same conditions.

Synthetic Rubber Output Germany's first large plant for

producing synthetic rubber, in Schkopau. is expected to produce about 27.500 tons of the product this year.

__ _—" — ■1

Six Are 'liquidated' On Entering Soviet, Newspaper Reports

'More Than 200 Spies' Captured Near Polish Border, Another Says

By the Associated Press. MOSCOW, Sept. 12—"Liquida-

tion” of six violators of Soviet Rus- sia’s “southern frontier” was report- ed today in the newspaper Red Star.

The country from which the six crossed the frontier was not speci- fied, but it possibly was Rumania or

Turkey. The report said two were

shot while trying to escape and the other four were “liquidated.”

The same newspaper said a spy was arrested within the western frontier and after a trial as Smo- lensk was "given what he deserved.” The report indicated he was charged with espionage on behalf of Po- land and Britain. He was tried by a special military tribunal.

204 Reported Captured. An article in the government

newspaper Izvestia said today "More than 200 spies and diversionists who attempted to cross the border” had been captured by the family of a

railway guard near the Soviet-Po- lish frontier.

It was unofficially reported that numerous refugees from Poland al- ready had flocked across the Soviet border.

Izvestia also said 250.000 wives of railway workers were beginning to learn their husbands’ jobs in case

of war. nusn on r non mores.

A rush on food stores and savings banks continued as the Soviet gov- ernment mustered men and ma-

terials on its western border near

Poland. Many anxious housewives formed

lines at stores to purchase supplies and foodstuffs, especially sugar.

Indications that large numbers of reserves were being called up was

seen in yesterday's issue of the Red Star, which said, “Our terms of mili- tary’ preparedness are tremendously- increased by the readiness of the Red Army • • • it is one of the most important defense measures of our

state.” At the same time it was reported

reliably, but unofficially, that Maxim i Litvinoff, former commissar of for- eign affairs, now is living at Spiri- donovka House, which is the offl-

; cial residence of Vyacheslaff Molo- toff, commissar for foreign affairs

j and premier.

War Closing Liege Fair BRUSSELS. Sept. 12 (^i.—The

Liege International Fair is closing prematurely because of the war.

and officials suggested today the buildings might be converted into barracks, hospitals or refugee quar- ters.

French jute carpets are in in- creasing demand in America, say French experts.

Warning by Bullitt 10 Days Before War Revealed by Osmena

Philippines' Vice President Avoided German Boat On Envoy's Advice

By thf Associated Press. NEW YORK. Sept. 12.—Vice Presi-

dent Sergio Osmena of the Philip- pine Islands disclosed last night the United States Ambassador to Prance, William C. Bullitt, warned him against talcing a German boat from Italy to Manila 10 days before war was declared.

‘‘I don't know what would have happened to my party had it not been for Mr. Bullitt's kindness in tipping us off.” said the graying vet- eran of the Philippine fight for in- dependence. "There is no telling wh#re the North German Lloyd liner Gneisenau is now. Certainly it is not on its scheduled voyage from Genoa to Manila."

On Mr. Bullitt's advice, Mr. Os- mena sailed west instead of east to Manila. He arrived here Saturday aboard the crowded Dutch motor- ship Johan van Oldenbarnvelt, which had been taken off its South- ampton-Batavia run to bring war

refugees back to America. It left Southampton August 31.

Mr. Osmena said the Philippines ; would follow any attitude America | takes toward the European war. He i said he could not guess what effect

a prolonged conflict would have on Philippine independence, now due in 1946.

Mr. Osmena had been touring the world, making a study of national parks and resorts. He had spent nine

i months studying in this country ; before his trip to Europe last month.

During Mr. Osmena's trip abroad, a movement was begun in the Philip- pine National Assembly to abolish the vice presidency. On this Mr. Osmena had no comment.

He expects to arrive in Manila about the middle of October.

I _

Andrea Leeds to Wed HOLLYWOOD, Sept. 12 wp>.—An-

drea Leeds, motion picture actress, and Bob Howard, son of C. S. How- ard. California automobile dealer

| and race horse owner, announced their engagement today.

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