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I Basis Is Being Laid In Shanghai for U. S.-Japanese Talks Tokio's Minister at Large Arrives for Start of Exploratory Pcrleys By A. T. STEELE, Chicago Dally News Foreign Correspondent, SHANGHAI, Nov. 8 (By radio).— The arrival here tonight of Skomotsxi Kato, Japanese Minister at Large Is expected to signalize the opening of exploratory discussions with American and British diplomatic representatives on this collision ground of Japanese and Occidental influences. Japanese declare that Kato is coming here not to negotiate but rather to lay the foundation for future negotiations in Washington and elsewhere. When Kato arrives he will find the American cruiser Augusta, flag ship of the Asiatic fleet, dominating the water front of Shanghai’s Inter national Settlement and symbolizing the new importance of the American Navy in the Far Eastern picture. British war vessels, which for years have overshadowed the Bund, have been withdrawn for war service, leaving only a few picayunish gun boats. j Within the past month the Japanese have made a practical be ginning in their efforts to improve relations with thp United States by settling a fev, irritating points of friction. The hostile and indifferent attitude of Japanese authorities on the spot has turned into cordiality, and protests are no longer ignored, but are now usually answered. Other concrete manifestations of good will are the restoration of Shanghai j University to its American owners, a diminution of slapping incidents and other assaults on Americans, and the release of 5.000 tons of American-owned tung oil which had been detained at Hankow for the past year. Big issues are still unscratched and a rather ominous note is the uncon firmed report from Tokio that the powers will be referred to the yet unborn Japanese-sponsored Wang Ching-wei government (projected for Central China) if they attempt to broach such vital questions as the reopening of the Yangtze and foreign claims on customs revenues. tCopyright. 1939. Chicago Daily News, Inc.) Peace (Continued From First Page.) for "a / new world in which the nations will not permit insane armed rivalry to deny their hopes of a fuller life” and ”we are cietei mined to see to it that Europe shall not again be subjected to a repetition of this tragedy.” Typical of British press comment was the London Daily Telegraph’s remark that if Lord Halifax "had had the message of King Leopold and Queen Wilhelmina in mind, he could not have made a more appro priate and convincing reply." German sources said it was not known whether Adolf Hitler would make a formal reply to the offer to negotiate a settlement of the European war through Foreign Min ister Joachim von Ribbentrop. The Fuehrer, in Munich for the annual celebration of the Nazi beer cellar putsch in 1923, has given no indi cation of how he feels on the mat ter, although he was carefully study ing the offer. Bar to Invasion Seen. Whatever the results from the mediation offer, observers in Brus sels expressed belief it would make doubly difficult any immediate vio lation of Belgian or Netherlands neutrality by the warring powers. Fear that war would start in earnest on the western front in a few days was voiced by some Bel gian quarters commenting on re ports of German troop concentra tions near the Netherlands frontier. While little hope was held that mediation would result from the neighboring monarchs' offer, a Bel gian foreign office spokesman said “the general situation is slightly bet ter this morning.” May Follow Up Move. Official circles at The Hague hinted that King Leopold and Queen Wilhelmina might follow up their offer as peace mediators with diplo matic contacts with Berlin, London and Paris. while these circles would not spec ulate on the probable outcome of the dramatic peace appeal, an atmos phere of moderate but cautious opti mism was apparent at The Hague. It was conceded that this opti mism was based on the belligerent powers’ apparent reluctance to initi ate major offensives rathe® than cn any reaction produced thus far by the mediation offer. If the offer is not rejected out right. Dutch government circles said, it might be possible to make care ful contacts with the belligerents and thus give them further time to express their views. Polish Premier to Go to London. It was disclosed in London that the Polish Premier. Gen. Wladis law Sikorski, and Foreign Minister August Zaleski would visit the Brit ish capital next week to confer with Prime Minister Chamberlain and Lord Halifax. The Polish govern ment is in Paris. The British cabinet considered the Belgium-Netherlands peace appeal at a meeting today, it was said au thoritatively. The mediation offer, which came as a surprise to Lon don, however, apparently stirred little British hope for concrete re sults. Premier Daladier conferred until late last night at the war ministry in Paris, but there was no hint of official French reaction to the medi ation suggestion. Unofficially it was said that while France and Britain had expressed willingness to attend a peace con ference under certain conditions, to do so now would be tantamount to accepting a German victory. “They cannot nourish the least il lusion as to the fate of their pro posal,” commented Pertinax in L’Ordre. He attributed the move to German pressure on Belgium and the Netherlands, which he said had been increasing in the past 15 days. Sensation in Berlin. The offer was a sensation in Berlin government offices. Surprise was ap parent that it should be made -at this time, with the war already more than two months old. The authoritative commentary, Dienst aus Deutschland, said, “It will be weighed with all the serious ness its deserves.” The average German citizen, rely ing on the daily press, was largely unaware of the proposal. Indicating an apparent lack of instructions, three German morning papers print ed yesterday's communique from The Hague inconspicuously on page 2 without comment, while the re maining two carried nothing at all. Attack on Neutrals Ceases. Newspaper attacks on the little neutrals for not energetically pro testing the British blockade's effect on their shipping ceased today as abruptly as they started yesterday. Germany, authorized sources said, finds fault with neutrals because i “they keep smiling when their toes are stepped upon by Britain"—a reference to the British blockade. So long as that attitude remains mediation offers are futile, these sources said. Evidently it was decided to halt newspaper agitation until Hitler had considered the neutral proposal. He had expressed “welcome” of a similar j offer made by Belgium and the Neth erlands three days before the in vasion of Poland, September 1. Some officials expected a favorable reception this time, but the first Nazi reaction was that the best mediation opportunity had been missed after Hitler's October 6 “peace" speech. Although initiative for advancing the mediation proposals was credited to Leopold, informed quarters at The Hague said Queen Wilhelmina could be expected^ to take an active hand in any diplomatic negotiations that might be conducted. The offer was the second made by the King and Queen. On August 29. three days before Germany invaded Poland, the sovereigns fruitlessly proffered their good offices to medi ate. Some sources intimated the pres ent proposal was prompted by be lief that Germany was about to gamble on an attack against the I Maginot Line. reace besture Reported Result of German Note By Radio to The Star. PARIS, Nov. 8—King Leopold’s visit to The Hague, according to in i formation reaching this correspond ent. was decided upon by a council of ministers held at Brussels to examine Germany's stern note of last Saturday, which requested 1 clarification of Belgium's neutrality j and of its relationship to Holland | Revelation of the delivery of this ! virtual ultimatum in Brussels was made Monday. Two possible stands which the Belgians might decide to take in face of the German menace were discussed in the course of that cab inet meeting, according to the latest information: 1. A definite understanding be tween the two neutrals by which they would regard their respective security and integrity as interde pendent. 2. To accept the German demands and make a renewed declaration of neutrality, emphasizing the desire of Belgium and Holland to show complete impartiality toward the two warring camps. With Holland, it is believed, re jecting the first proposal because of the possibility of its precipitating crisis, both parties agreed to a somewhat modified expression of the second proposal. This took the form of a peace appeal, reiterating the former appeal made by both countries shortly before the out break of hostilities. The impression prevailing among French official circles is that this new peace appeal, despite the excel lence of its intentions, stands little chance of finding a hospitable echo in France, in view of the impossi bility of discovering any acceptable grounds for discussion with the German dictator. To what extent the element of fear has influenced Belgium and Holland in addressing this appeal to the belligerents is the question asked in Paris newspapers today, particularly in view of the intensifi cation of German military prepara tions and the massing of mechan ized troops on the borders of these two countries. This, however, may be interpreted as either a move preparatory to launching an attack on one or both, or else a new phase in the “war of nerves.” (Copyright, 19.38. by Chicago Daily News. Inc.) i -.- ~ "*** LANGLEY FIELD. V A—RECEIVE AVIATION AWARD—Lt. Col. Robert C. Olds (left), command er of the 2d Bombardment Group, General Headquarters Air Force, is shown receiving from Secretary of War Woodring (holding paper) the Mackay Trophy for the most meritorious contri bution to United States Army aviation in 1938 at a ceremony here yesterday. At the extreme left is Maj. Gen. Henry H. Arnold, chief of the Army Air Corps, and next to him is Maj. Gen. Delos C. Emmons, who commands the G. H. Q. Air Force. Col. Jacob W. Wuest, commanding officer at Langley Field, may be seen standing behind the trophy. The award was made in recognition of an 11,032-mile goodwill flight to Argentina. _A. P. Photo. Princess Sues Lord Rothermere For Aid to 'Kingmaker' Role Bj the Associated Press. LONDON, Nov. 8.—A suit by Prin cess Stefanie Hohenlohe-Walden burg-Schillingsfuerst against Lord Rothermere, publisher of the London Daily Mail, for breach of contract, under which she asserts she was to receive £5,000 (about $20,0001 a year for acting as his special politi cal representative in Europe, was heard today. Counsel lor the former wife of a Hungarian prince said Lord Rother mere "told the princess in 1927 that he had decided to work for the restoration of the Hohenzollern and Hapsburg dynasties. He wanted to be a modem Warwick—the king maker—and work on the European rather than the English field.” Later, the counsel said, the prin cess "rejected an idea that was put forward that Lord Rothermere's son, Esmond, should be suggested as the king of Hungary.” Other high lights in her attorney’s arguments were: (1) She obtained from Adolf Hitler in 1934 an invitation for Lord Rothermere to visit him in Eerlin. (2) “Lord Rothermere had a royal reception and told her that Hitler would make her a duchess. (3) “The accounts showed that over a period of five and one-half years Lord Rothermere paid the princess £46,000 (about $185,000 dollars). (4) A "heated discussion” when Lord Rothermere was apparently suggesting he was gome to drop her as an employe onded "with Lord Rothermere telling her he would pay her the £5,000 for the rest of her life.” The 43-year-old princess testified she met the 71-year-old Lord Roth ermere about 1925 and interested him in the cause of Hungary at a luncheon in Monte Carlo. "He told me there was very little news in his paper and said he would be grateful for any original ideas,” she asserted. In 1927-28 Lord Rothermere es poused the cause of Hungary and made efforts to get the Treaty of Trianon revised. Sir Oswald Mosley, leader of the Fascist British blackshirt organi zation, received Lord Rothermeres support in 1934. The pubjisher was severely criticized in many quarters for this. Princess Stephanie, nee Richter, | was born in Vienna and married Prince Francis of Hohenlohe-Wal denburg Schillingsfuerst in London in 1914. They had one son and were divorced in 1920. For many years she lived in France. Nazi Pressure Seen Behind Neutrals' Move for Peace Germany Increasing Protests on Belgian And Dutch Policy Bv PERTINAX. PARIS. Nov. 8 i N.A.N.A.l.—It is difficult to believe that King Leo pold of Belgium and Queen Wilhel mina of the Netherlands and their Ministers entertain the least illusion about the fate of their joint peace initiative. If they did, the speech delivered by Viscount Halifax, the British foreign secretary, must have brought them back to their senses. But the theory accepted by most is that both sovereigns did not think for one minute that they would succeed in inducing France and Britain to rally to proposals which could not but put the seal on the destruction of Austria, Czecho slovakia and Poland, suppress all organized resistance to the Hitlerian empire and invest the latter with an insuperable hegemony practically over the whole European continent. The two heads of state have lent the peace offensive begun by Adolf Hit ler on October 6 a support which neither Josef Stalin, Premier Mus solini, Gen. Franco nor any of the Scandinavian states have been bold enough to give. Reich Protests Increase. About the form taken by German pressure, full information is not available here. But it is a well established fact that German pro tests against "unneutral” articles published in the Belgian press and against negotiations conducted in London and Paris by the Belgian and Dutch cabinets to reconcile the rules of the Anglo-French blockade with the requirements of their na tional economies have gradually be come during the last fortnight more and more brutal. The German l~" = rulers raised objections to the sug- ! gestion submitted more than once to ! the Dutch government by the Bel- i gian in the last few weeks to the 1 effect that the military defenses of both countries should be closely co-ordinated. Neutral Policy Creates Peril. To understand what followed, it must be kept in mind that when Belgium was released by France and Britain from her obligations of al liance in March, 1937, and, to replace them, obtained a unilateral promise of French and British military help, she pledged herself in return to keep an adequate army and to resist the invasion of her ow'n frontiers. As late as last September Bel gium had a chance to be included within the protective framework of the Franco-British military system. Now, as she perceives that Hit lerian Germany is inclined to con centrate upon an aerial and sub marine attack on Great Britain, she fears to be turned into a battlefield. Her policy of neutrality has there fore created for her the very peril from which she strove to escape. An obsolete conception of neu trality is, in the last analysis, at the root of both nations' trouble. Quiet, Please! FARLEY, N. Mex., Nov. 8 </P).—The law has caught up with Farley. A citizens’ committee, angered by a Saturday night riot that injured 100 persons, demanded county commis sioners give a thought to law en forcement. The commissioners assigned a constable, deputy sheriff and justice of the peace to hold Farley’s exuber ance in check. Gibraltar boasts it has no trains, no street cars and no public debt. Cabinet Shifts Loom In Britain in New Parliament Session Food Minister Morrison, Under Increasing Fire, Seen Sure to Go By HELEN KIRKPATRICK. Chicago Dally News Foreign Correspondent. LONDON, Nov. 8.—In a fortnight’s time the present session of Parlia ment will probably end and the King will convene a new session imme diately without the usual ceremonial. The new session is Parliament’s op portunity for making governmental changes if the Prime Minister de sires, and there are some indications that important changes will be made. As the days pass criticism of Pood Minister William S. Morrison con tinues to increase as first a rationing scheme is proposed, then altered and modified. He is undoubtedly one minister who will go if there are any changes. Another whose adminis tration ls under exceptionally heavy fire is Leslie Burgin, supply minister. Mr. Bergin has never been popular nor regarded as an outstanding man, and it is felt that 'the supply job is the most Important, next to those of the service ministers. Pressure on Chamberlain. There Ls great pressure being put on Prime Minister Neville Chamber lain to reconstruct the economic life of the country by putting industry, supply and raw materials under a competent economic administrator. Lord Stamp is discussed as a possible candidate for the job. Other changes are probably inev itable in the war and air ministries. Leslie Hore-Belisha has done an ex cellent job in the eyes of many peo ple, but his methods have aroused considerable antagonism, and it ls thought that a new war minister will have to take over sooner or later. Air Minister Sir Kingsley Wood is reported not very happy in his present position and might be willing to hand over if a job of equal importance were available. It is possible that Sir Samuel Hoare may be given some definite job, for as it is he is lord privy seal without any department and therefore has plenty of time to concern himself with all depart ments. The difficulty of any cabinet re construction is the scarcity of out standing men. Robert S. Hudson, once regarded as a future candi date for an important ministry, is now out of the running owing to his connection with the famous £100.000,000 “loan” to Germany last spring. Eden May Get War or Air Post. It is unlikely that Harold Balfour undersecretary of air, will step up into the minister's job. Anyway, he is in Canada now attempting to build up the Canadian airplane in dustry. Although there are no in dications so far, it is not impossible that Maj. Anthony Eden, former foreign secretary and now domin ions secretary, might move into the war or air ministry. As the Indian situation continues, the exceedingly difficult question is raised once more of the possibility of recalling the present viceroy, Lord Linlithgow. The logical man to take this place, and the man who it is thought cherishes an ambition in that direction, is Sir Samuel Hoare, who drew up the India Act of 1935. The man who could settle the Indian question now would probably be a step nearer the pre miership than the one who must take the inevitable criticism direct ed against any important war cabinet job. Much depends on the events of the next weeks as to whether the changes will be made soon or de ferred until next year. This time there is no question of a change of premiership, although there is still important opposition to Mr. Cham berlain inside the Conservative party as well as in the opposition. (Copyright, 1939, Chicago Daily News. Inc.) Merchants of Honduras are in creasing their orders for United States goods. Officials of the Soviet Embassy who staged a reception last night marking the 22nd anniversary of the Communist revolution, filed away today the longest list of "regrets” sent to any diplomatic hosts here in recent years. No Government officials of rank, no Senators, few society figures and only a scattering of diplomats were among the 1.083 to attend the em bassy party. Only two Congressmen were among the throng of guests who moved up the red carpeted em j oassy staircase past a painting of the revolution, just brought here from the New York World's Fair. Representative John W. Boehne. jr.. Democrat, of Indiana arrived early with A. F. Koch, a friend from his home town of Evansville, telling questioners only that he t "was invited, accepted and came.” Another Representative present was Frank Buck, Democrat, of Cali ! fornia. with Mrs. Buck. Most Con gressmen had gone home after ad , journment, but Mr. Boehne and Mr. Buck had stayed for a Tax Com mittee meeting. Hull Avoids Receptions. Secretary of State Hull does not make it a practice to attend re ceptions unless they are given by a foreign Minister or visiting head of state. Many diplomats have shied away from social functions recently on the plea of “too busy.” Reasons for other absences noted were varied. Lord Lothian, the Brit ish Ambassador, had "a previous engagement.” French, Japanese and Italian Ambassadors were said to be in New York. But many Con gressmen had announced ahead of time that they were not going: a few declaring the reason was “the international situation.” President Roosevelt was not in town and he never goes to such affairs, so his absence was not notable. However, he did not send President Kalinin his customary congratulatory message, and no official comment was forthcoming. Several Congressmen who did not attend the Embassy party made it clear that they did not merely forget. They were not quite sure, they said, that they wanted to eat pastry swirls or sausages on toothpicks under a picture of Soviet Premier Molotoff, who criticized President Roosevelt and the administration neutrality legislation last week. The crowds sampled the buffets, although many were disappointed during the latter half of the party when they were told that the sturgeon and champagne were gone. There was vodka, however, both dry and sweet; Scotch whisky mixed with a Soviet-imported soda labeled “The People's Commisariat of Public Health”; punch, spiked and un spiked ; coffee, tea, manhattans and martinis. Despite the absence of ranking officials, the crowd present was large. Among those seen were Edwin S. Smith of the Labor Board with Mrs. Smith; a White House Army aide, Lt. Chester Hammond, and Leon Henderson, securities commis sioner. A full account of the reception appears in the Society Section^ page B-3. Constitution Changes Lead In Mississippi Returns Bj the Associated Press. JACKSON, Miss., Nov. 8—Scat tered returns from yesterday’s gen eral election indicated today rati fication of State constitutional amendments that would allow last wills and testaments drawn in favor of religious, educational and char itable institutions. Voters will not know the official results, however, until next year. The Legislature meeting in Janu ary will make the first official tally of the ballots. Paul B. Johnson of Hattiesburg was elected Governor without op position, as were several other Dem ocratic nominees for State offices. Republican votes in the State art negligible. Canadian Navy Calls Up 40 Commercial Vessels OTTAWA, Nov. 8 'Canadian Press).—Forty commercial vessels have been called up for service in the Canadian Navy and naval per sonnel has been more than doubled since the war, a spokesman for the national defense department said last night. A Canadian broadcast said many of the 40 ships are in service as mine sweepers, anti-submarine ves sels, patrol or escort vessels or gate vessels for anti-submarine booms. The speaker said 1,800 reserves had been added to the peacetime naval personnel of some 1,700 offi cers and men. No Ranking U. S. Officials Attend Soviet Reception GERMANS AT RUSSIAN PARTY—Herr Hans Thomsen, Charge d’Affaires of the German Embassy here, and Frau Thomsen, shown as they arrived last night for the Russian Embassy reception. Col. Vincenzo Coppola, air and military attache at the Italian Embassy, and Signora Livia Coppola Viola also attended the Russian party. —A. P. and Harris & Ewing Photos. RUG Beaut* Our Duty ciiaiiipmiTom * £r//Mr.Pyl« nlui? b SANITARY CARKT b 1 RU6 CLIANIN0 CO. | lO^NOIAN^VfJ -1 /71. / PRICES ARE l/ia^UnUC RISING! V\» 111 sharp increase in dta , mond and plalinum prices. Avail ronrseif of our present stock and save! NA. 0640. ARTHUR MARKEL 918 St. N.W. Suite 210-211 i— i i j When you drink three cate* of Mountain Valley Water—six ta eight glasses a day over a period of time—you give this Hot Springs, Arkansas, mineral water a good chance to help you. Mountain Valley is a natural aid in Rheumatic, kidney, stomach and bladder conditions. Phone MEt. 1062 for a case today. 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