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Weather Forecast Local thundershowers this afternoon, ending early tonight; slightly cooler to night; tomorrow fair and cooler. Tem peratures today—Highest, 85. at 1 p.m.; lowest, 69. at 5 a.m.; 83 at 2 pjn. From the Dnited States weather Bureau report. Full details on Page A-2. Closing N. Y. Markets—Soles, Page 14. _ _ _ fc! rit& IIP) Mean* Aaaociatad Prate. 88th YEAR. No. 35,140. WASHINGTON, - D. C., TUESDAY, JULY 16, 1940 — TH;iRTY-TWO PAGES.*** THREE CENTS. Democrats Draft Public Power Plank as Roosevelt Managers Await Third-Term Nomination - 1 Floor Fight Brews On Foreign Policy Stand in Platform By JOHN C. HENRY, Stir Still Correspondent. CHICAGO, July 16 —The 1940 j Democratic platform will contain a ! strong public power development ■ plank, providing in effect a keynote for an intense campaign against j Wendell Willkie on the issue of the Republican nominee’s utilities back ground. This fact was reliably learned to day as a platform subcommittee of 17 members began executive sessions on the job of actually drafting the party's convention pronouncement. It is the hope of Chairman Wagner that a subcommittee draft will be ready for submission to the full committee tomorrow morning—and to the convention tomorrow night. While the foreign affairs plank 1 t i 11 , has Kept the committee in some thing of a fuss throughout the past week, there ha#; been a tacit una- j nimity among the policy makers to a labored effort to build up the rec- i ord for the contemplated vital pro- j nouncement on the power issue. | In at least one instance, and there are undoubtedly others, it was learned that testimony was solicited from a State delegation where the private utilities bugaboo is a major political factor. And through several days of open hearings there was constant return to the issue by spokesmen from all sections of the ; country. Rankin Makes Long Statement. Representative Rankin of Missis sippi. long-time foe of the private utilities, was given the longest period before the committee of any witness, taking more than an hour to repeat slmost verbatim one of his House speeches attacking private power in general and Mr. Willkie in par ticular. Monroe Sweetland, young delegate from Portland. Oreg., de livered an impassioned appeal to Anti-3d Term Plank May Be Offered Convention By * Staff Correspondent of The Star. CHICAGO. July 16.—An anti third term platform plahk may be offered the Democratic con- ! vention. if^vas admitted today by Senator McCarran of Ne vada. a member of the Platform ! Drafting Subcommittee. Declining to say he would or he would not offer it. the Sen ator did admit that such a plank may be proposed in the committee session, and added that the action might be taken by some one other than himself. Earlier, Senator Wheeler of Montana, who is co-operating closely with Senator McCarran on the foreign policy issue, said he knew nothing of the possi bility. He took occasion, how ever, to remind the press that j years ago in the Senate he had | voted for the La Follette resolu tion directed at that time at stopping a "draft Coolidge” movement. "I feel now as I did then about the third-term tradition,” he said. the party to make power the prin cipal issue of the campaign—for just the reason that the Republicans fear it. Maurice Davidson, New Yorker, put Mr. Willkie and the power in terests “across the barrel” early in the hearings and among others ap pearing yesterday were Lt. Gov. Francis Kelly of Massachusetts and former Senator Smith W. Brookhart of Iowa. With obvious relish, several wit nesses and committee members re ferred to the fact that a former Willkie associate. Gano Dunne, util ities engineer now working with the National Defense Commission, had recommended to House and Senate committees that the Tennes see Valley project be expanded in the interests of national defense. "There seems to be a great de mand for expansion of the public power activities of the Govern ment.” one committee member re marked naively. I And in his address before the full convention last night, Speaker Bankhead dweit lovingly over the achievements of the T. V. A. “We have taken the position," he added, “that the waters in our rivers are the God-given heritage of the people and that private utility companies have no vested right to have a monopoly on their exploita tion.” These very words may appear again when the Platform Commit tee reports. Actually, with Mr. Willkie and President Roosevelt—who as far as (ContinuedfonPage A-3, Column 2.) Today's Program Barkley Address To Be High Light By the Associated Press. CHICAGO. July 16.—Today’s pro gram at the Democratic National Convention: Call to order at noon, Eastern standard time. Prayer by Bishop Reverdy C. Ransom of Wilberforce University. The national anthem, sung by Helen Gahagan. Address by Mrs. Thomas McAl lister, director of Women’s Division, Democratic National Committee. Routine business. Recess until 9 p.m.. Eastern stand ard time. Prayer by Rabbi Louis Binstock, Temple Sholom. Address of permanent chairman, Senator Barkley of Kentucky. Ickes Indicates 'Crack-Down' On Scattered Opposition , Rayburn Reported Acceptable to New Deal As Vice Presidential Nominee I Text of Speaker Bankhead's Keynote Address on Page AS.) By G. GOULD LINCOLN, Star Stall Correspondent. CHICAGO. July 16—As the Democratic National Convention swung into its second day at noon today two questions alone were agitating the delegates. First, a vice presidential nominee. Second, how far will the anti third-termers go in their fight against renomination for President Roosevelt? The names of Secretary of State Hull. Secretary of Agriculture Wal lace and Associate Supreme Justice Douglas were placed first on the list by some of those in the headquarters of Secretary Hop kins—headquarters supposed to be looking out for President Roose velt's interests. However, there were 15 or 16 other candidates in the held, and a new one cropping up almost every hour. Representa tive Rayburn of Texas, House ma jority leader, is acceptable to Sec retary Hopkins and Secretary of In terior Ickes, it was learned. Further, it was said, they planned to dis cuss Mr. Rayburn with the Presi dent. The Roosevelt third-term cam paign managers haxe sought to ap pease the antis, up to date. There were indications today that they might begin to crack down hard on the opponents. Secretary Ickes. who is here as one of the "inner circle” and whose private room at the Stevens Hotel ~<See-CONVENTION~Page A-3.)~ I Laughter Punctuates Roosevelt's Phone Talk With Hopkins White House Gives No Clue to Intentions; Byrnes in Spotlight B5 the Associated Press. President Roosevelt talked by telephone today for five minutes; with Secretary of Commerce Hop-; kins, who has been described by ■ some in Chicago as the Chief Ex-1 ecutive's contact man at the Demo- j cratic National Convention. The account of the conversation given to newsmen, however, con- i tributed nothing to the questions in ! their minds about the third-term 1 situation. Heard ‘‘Loud Laughter.” Stephen Early, presidential secre- ; tary, who was with Mr. Roosevelt when- the Hopkins call came through, reported that “the conver sation was all from the other end” and he could not hear it. Asked whether he heard the word "ac clamation" used. Mr. Early replied that "all I could hear was loud laughter.” With each passing minute seem ingly bringing a third-term nomina tion closer, reporters asked whether Mr. Roosevelt had changed his mind about going to Chicago. Mr. Early told them he did not "see a chance” that any of them would get a trip to Chicago with the President. Mr. Roosevelt heard the keynote speech by Speaker Bankhead last night as well as the address of Na- j tional Chairman Farley. Will Work and Listen. He reserved nearly two hours in the middle of the day so he might listen by radio to convention activ ities and at the same time work on his mail. The extent and purpose of Mr. Roosevelt's long-distance participa tion in convention affairs was some what obscure, but it served to move Senator Byrnes of South Carmolina well into the foreground of political conjecture here. The President, using a special telephone line linking the White House with Chicago, had a long, midafternoon conversation with Senator Byrnes yesterday. White House officials explained that the Chief Executive wanted to find out what was happening in the conven tion city. Senator Byrnes, they said, did most of the talking and the President most of the listening. President Sees Hull. The phone call followed a presi dential luncheon engagement with Secretary Hull. Aides said the com ing Pan-American Conference at Havana was discussed at the luncheon. Both Senator Byrnes and Mr. Hull have been mentioned as vice presi dential possibilities acceptable to the President in the event he ac cepts a call to buck the third-term tradition. And to many remaining in Washington the choice of some one for second place on the ticket seemingly supplied more of a prob lem than the selection of the head man. Senator Brynes frequently has served as a spokesman and “trou ble-shooter” for the administra tion on Capitol Hill and has been listed among the top-flight “New Dealers” at Chicago who are work ing for a third term. Lewis Quits Chicago, Third Party Unlikely By the Associated Press. CHICAGO. July 16.—After spend ing two days listening to Democratic politicians talk platforms and a third term, John L. Lewis returned to Washington today without having hopped on anybody's bandwagon or started one of his own along the third party road. The broad-shouldered C. I. O. leader whose union treasuries con tributed $500,000 to help re-elect President Roosevelt in 1936 left the city with his future political plans concealed under a soft straw hat pulled down close over his eyes. Among a score of C. I. O. third term delegates here were a few who privately predicted that Mr. Lewis would lead no third party into the November election, but instead would go along quietly with the Democrats if the party platform reflected his views on war, labor and domestic problems. Glass, Chicago Bound, Doubts He Should Nominate Farley 'He Would Not Ask Me If He Were Wise/ Says Virginia Senator Senator Glass of Virginia, saying ; he expected to find the Democratic Convention In Chicago a “cut and-dried" affair, questioned today the wisdom of his nominating James A. Farley for President. The 82-year-old Senator was asked by reporters if he would nom inate the National Committee chair man after Senator Glass announced he was leaving for the convention this evening. "I suppose so. but he would not ask me if he were wise," was the reply. Senator Glass will be accompanied by his recent bride, the former Mrs. Mary Meade of Amherst, Va. He said her illness had prevented their attendance at earlier convention sessions. (In Chicago this morning Mr. Farley was asked to comment on the Senator Glass statement. All the Postmaster General would say was: (“I’ll be-delighted to have Sen ator Glass nominate me and will consider it a very high compli ment.") Virginia Delegation Organizes at Chicago CHICAGO. July 16 UP).—Senator Glass of Virginia, whose words could add power to any National Demo cratic Convention “upheaval” on be half of National Chairman Farley, will join the Virginia delegation here tomorrow. The Virginia delegation organized yesterday, naming Representative Burch of Martinsville as chairman. Senator Byrd was named Virginia member of the Platform Committee and State Senator Aubrey Weaver of Front Royal was placed on the Rules Committee. New Zealand Forms 5-Man War Cabinet Es the Associated Press. AUCKLAND, New Zealand, July 16.—The New Zealand government formed a war cabinet of five men today, including three members of the government and two of the opposition. The War Cabinet will have full control of the Dominion's war effort. Its members are Prime Minister Peter Fraser; Minister of Finance Walter Nash; Minister of Defense F. Jones; Adam Hamilton, leader of the opposition, and Joseph Coates, former prime minister. Japan's Cabinet Resigns Under Army Pressure Government Pledged To Strong Policy in East Expected By the Associated Press. TOKIO, July 16.—Premier Admiral Mitsumasa Yonai handed his whole cabinet's resignation to Emperor Hirohito tonight, apparently under army pressure for stronger enforce* ment of Japan’s “new order in East 4sla” policy. Most Japanese newspapers expect ed that former Premier Prince Pu mimaro Konoye would be asked to form a new cabinet. Either he or War Minister Gen. Shunroku Hata, whose resignation hastened the end of the six-month old Yonai cabinet, presumably would point a new cabinet toward consolidation of Japan's gains in the Orient and take a strong stand against Western powers, including the United States, in the East. One Party Rule Hinted. “Army circles,” commented Domel. \ Japanese news agency, “have come to the conclusion that it is the urg ent task of Japan to establish the so-called, new national political structure which forms the only way for Japan, in view of the stress of the home and foreign situation, to carry out rearmament effectively, tighten State control of economy 1 and renovate foreign policy with I construction of a new order in East i Asia as the ultimate object.” • The “new national political structure” referred to by Domei is the plan for a one-party gov ernment favored by Prince Konoye. supposedly with palace approval. 'The one-party form would bring Japan into greater totali tarian similarity to Germany and Italy. Prince Konoye. however, has not elaborated his plan com pletely and may not be ready to launch it. One of the uncertain ties is what part Parliament would have in such a highly cen tralized government.! The opinion of Army circles. Domei said, was communicated to Admiral Yonal today after the War Minister had conferred with Army leaders and decided to quit. Emperor to Return. The Premier asked Gen. Hata to ; recommend his successor, Domei | reported. When Gen. Hata declined, the Premier decided to submit the ; resignation of his ministers and was upheld by the rest Of the cabinet. Admiral Yonai left by automobile for Hayama. the Emperor's seaside villa about an hour from Tokio, to tender the resignations. The imperial household announced the Emperor would cancel plans to review the Japanese fleet, and re turn to Tokio tomorrow. It was believed that no successor to Admiral Yonai would be desig nated before tomorrow. Yonai told has cabinet he had been instructed by Emperor Hirohito to remain in office until further notice. Attention centered on Admiral Yonai and his Foreign Minister, Machlro Arita. while political lead ers conferred over formation of a new cabinet. If either should be retained, ob servers believe, it can be taken as a sign that Japan has no intention of making any formal alliance with Italy and Germany, since these two men were largely responsible for (See TOKIO, Page A-4.)) New Baltic Constitutions To Follow Soviet Lines By the Associated Press. RIGA, July 18—Three newly elected Parliaments in Estonia, Lat via and Lithuania will assemble soon, it was officially announced today, with the drafting of new constitutions along Soviet lines their first task. The counting of votes from elec tions Sunday and Monday began with official estimates that more than 90 per cent of thlse eligible in the three Baltic nations partici pated. The Latvian Telegraph Ministry announced the lifting of censorship imposed after Soviet Russian troops occupied key areas of the three na tions. Summary of Today's Star Page. Amusements. B-16 Comics ..B-14-15 Editorials „_A-8 Finance_A-13 Lost, Found-B-10 Page. Obituary ..A-10 Radio.-B-14 Serial Story.A-12 Sports ..A-14-12 Society _B-3 Woman’s Page, B-9 Foreign “Last offer” by Hitler rumored in Rome. Page A-l Japan's cabinet quits after Hata resignation. Page A-l Reich ready to attack, England Warned. Page A-l South Americans fear Nazi economic drive soon. Page A-Z Huge fires at Haifa, crippling of Hood claimed. Page A-7 Argentina seizes 25 In raids On Nazi centers. Page B-4 Notional. Hull voices U. S. opposition to clos ing of Burma road. Page A-l 63 men perish in mine explosion in Pennsylvania. Page A-l President talks with Hopkins; Early hears “loud laughter.” Page A-l Washington and Vicinity Plumer’s charges not submitted to Mount Rainier Council. Page B-l Fairfax planners find sentiment split on zoning proposal. Page B-l District policeman, struck by hit-run driver, dies. Page B-l Alexandria Electoral Board asked to meet. Page B-l Editorial ond Comment This and That. "" Page A-g Answers to Questions. Page A-g Letters to The Star. Page A-8 David Lawrence. Page A-9 Alsop and Kintner. Page A-9 G. Gould Lincoln. Page A-9 Jay Franklin. Page A-9 Constantine Brown. Page A-9 Sports Mats knock Tribe oflt of lead and climb to sixth. PageA-19 Hudson may displace Leonard as Nats’ top pitcher. Page A-19 Armstrong rated 2-1 favorite over Jenkins tomorrow. PageA-19 Dempsey K. O.’s another wrestler in wild bout. Page A-19 Henson, Risk both set ringer marks as match nears. PageA-11 Rider Cup Challenge Golf to net Red Cross $25,000. Page A-ll Mixed doubles lures star teams to parks tennis meet. Page A-1J Miscellany City News in Brief. Page .B-8 Vital Statistics. Page B-8 Nature’s Children. Page B19 Service Orders. Page B-8 Bedtime Story. Page B-14 Crossword Puxrle. . PageJt-15 Letter-Out. Page B-14 Winning Contract. Page B-14 Uncle Ray’s Corner. PageB-15 C i caTT^y HARDLY WAIT ) TilLTHlSTHINGS l °*?ui (“JUST ffoOttVILT U. S. Making Contract, On First Powder Plant; In Defense Program Private interests to Operate Enterprise In 'Safe Location' By FRED H. MORHART. Jr. A contract will be concluded to morrow for the first Federally owned and financed powder plant under the new defense program. It was learned today. The plant re portedly will cost in excess of $25, 000.000 War Department officials declined to reveal at this time where the plant would be located. It was said, however, it would be inland in ‘‘a safe place in time of emerg ency." The plant will be operated by pri vate interests. Other Government-owned plant s are expected to be announced as soon as negotiations with private munitions manufacturers are com pleted. Private interests also may build their own plants with the Sid of Government loans. Designation of the locality for the first Government-owned plant is expected to be announced tomor row. It has been reported that mast of the plants, either private or Gov ernment, to be constructed in the future will be located west of the Alleghany Mountains, perhaps in the Great Plains States. These localities, it is pointed out. would be practically invulnerable to mil itary air attack. However, modifications in these plans to cover costs of shipping raw materials and the finished product may place these munitions plants elsewhere. Another factor is labor supply. Man Hurled fo Death For Refusing $40 Loan By the Associated Press. WELCH. W. Va.. July 16.—The arrest of Fred B. McClure, mining engineer who. police said, admitted hurling the body of his unconscious employer six stories down an elevator shaft after an unsuccessful attempt to get a $40 loan, was announced today by Police Chief Harry C. Chaffins. The death of G. D. Hylton. 42, de scribed by friends as a man "who never had an enemy.” at first was believed to have been an accident. His body was found atop an ele vator in a downtown building July 10 a few minutes after the operator heard the body strike. Friends of Mr. Hylton, engineer for the Vera Pocahantas Coal Co., demanded an investigation, Mr. Chaffins said, and McClure was ar rested last night on a murder war rant. The police chief said McClure con fessed "They quarreled over the loan,” Mr. Chaffins said McClure told him. “Then McClure said he knocked Mr. Hylton unconscious with a paper weight, dragged him through two offices and pushed him down the shaft.” Red Cross Speeds Food To French War Victims By the Associated Press. GRENOBLE, Prance, July 16.— Hundreds of trucks hired by the American Red Cross and the Amer ican Society to Aid War Victims rushed food, medicine and other supplies today to the scenes of greatest refugee needs in parts of Prance unoccupied by German troops. The supplies arrived at Marseille yesterday on the United States freighter McKeesport, first relief ship to reach a French port since signing of the armistices with Ger many and Italy. A dispatch from Marseille in Le Petit Dauphinois quoted Capt. Jubb of the McKeesport as saying the voyage was without incident. Nazis Bar Papal Delegates VATICAN CITY, July 16 (JP).—A Vatican news service said today the Holy See had learned with regret that the German government had refused to allow papal diplomatic envoys in Holland and Belgium to remain there in their religious capacity as apostolic delegates. —.1__ Windsors to Stop In New York on Way To Bahamas Post By the Associated Press. LONDON. July 16.—A Reu ters. British news agency, dis patch from Lisbon tonight said that the Duke and Duchess of Windsor had booked passage by clipper to New York and are expected to fly from New York to the Bahamas, where the Duke will be governor general. U. S. Opposes Closing Of Burma Route, Hull Warns British Believed Aware Of American Attitude Toward Tokio Pressure By GARNETT D. HORNER. Firm United States opposition to closing of the Burma road into China or other action hampering commerce was announced today by Secretary of State Hull. The Secretary's comment was made at his press conference in con nection with reports that Great Britain, under pressure from Japan, would temporarily close the Burma route for movement of war mate rials into China. “This Government." Mr. Hull said, “has a legitimate interest in the keeping open of arteries of com merce in every part of the world and considers that action such as this, if taken, and such as was taken recently in relation to the Indo china Railway, would constitute unwarranted interposition of ob stacles to world trade." French Bowed to Tokio. The French government acceded to Japanese insistence for closing the railway route into China from French Indo-China. Mr. Hull did not reply directly to questions about whether ihe British government had been in formed of the United States atti tude. but said it could oe assumed the British were well aware of the American position. The temporary closing of the Burma route for movement of cer tain commodities into China was understood to have been agreed upon by the British government at Japan's insistence in the hope that further negotiations might lead to settlement of the war between Japan and China. Secretary Hull made clear yes terday that, while the United States Government is keeping fully in formed or\ developments in the Far East, it is taking no part in the reported peace moves and pursues a separate and independent course with respect to the situation. Lebrun Leaving, Radio Says NEW YORK, July 16 (A*).—Albert Lebrun, former President of France, has left Vichy with his wife en route to Geneva, Switzerland, the Italian radio reported today in a broadcast heard here by N. B. C. 600,000 Men Massed for Attack on Britain Friday, Paper Says Article Reports Earlier Assault Delayed by Staff Diasagreement Bt the Associated Press. GRENOBLE. France, July 16.— Le Petit Dauphinois said today that foreign diplomatic quarters in Switzerland had heard that a : projected attack on England by 600,000 Germans had been delayed because of differences in the high command, but that the attack may be launched Friday night. The Germans have assembled hundreds of ships for the attack, the newspaper said in a dispatch from Bern. According to Le Petit Dauphinois, the commander in chief of the Ger man Army and other generals op posed the plan of attack, first set for July 9-10, because they thought it too dangerous to the attackers in its original form. The ships, according to the news paper, range from German and cap tured French. Belgian and Dutch freighters and passenger ships to fishing smacks and barges to be towed by tugs. They are lying along the coast from Brest. France, to Bergen. Nor way. the paper said. The fleet’s escort of light gun boats. submarines and fighting planes, to be preceded by mine sweepers and waves of bombers, were ready when one group of gen erals headed by Gen. Walther von Brauchitsch, commander in chief of the Germann Army, protested that it was too dangerous, the paper said. The dispatch said that Gen. Wil helm Keitel, chief of the general staff, defended the original plan be fore Hitler, but the Fuehrer never theless delayed the attack to con sider the objections. The Von Brauchitsch group, the dispatch continued, argued that minesweepers could not clear the lanes well enough for such a mighty fleet and that two-thirds of the force might be lost, leaving 200.000 men to risk destruction by the British de fenders. The Italian command, the paper also said, were reported to be op posed to the plan. The dispatch concluded with the report that Hitler had decided on a modified Keitel plan which may be launched Friday night if weather permits. Canon Chase Is Dead At Kings Park, N. Y. By the Associated Press. KING’S PARK, N. Y.. July 16.— Episcopal Canon William Sheafe Chase, 82, former crusading leader of Christ Church in Brooklyn, died suddenly of heart disease at his home today. He had been retired for several years and at his death was president of the Religious Union for World Peace. " ->--— | 'Monster' Turns Out to Be Hoax To Scare Watermelon Raiders That fierce, roaring, gargantuan monster which has been roaming the wilds of the Eastern Shore dur ing the last week has been definitely identified. It is not an orangutan. It is not a sea serpent. It is not a Great Dane. It is simply a “watermelmonster,” a creature bred by imagination out of thin air by farmers who want to protect their watermelon crop from raiders who are naturally camouflaged for their midnight work. The creature has a short life span—living only during the weeks while Eastern Shore watermelons are ripe—but has such a reputation for ferocity and frightfulness that practically all the doers on the shore are locked and barred against it. The true nature of the “varmint,” which has been reported roaming through Caroline County, Md., dis turbing the field hands’ sleep with awful cries lately, was revealed by J. R. Eddington, Federalsburg, Md. It was several days ago when pews of the “varmint” reached print. Farmers reported finding huge foot prints in their melon patches and seeing a creature that weighed 200 pounds and stood on its hind legs. At first it was suspected that an orangutan had escaped from a circus. Then police obtained casts of the footprints and sent them here to the Biological Survey for identification. Yesterday, the foot prints were declared to be those of a large dog. Some one discovered that Mr. Ed dington's powerful Great Dane was missing, and laid the blame on the dog. Mr. Eddington firmly denied the accusation today. "I know where my dog is,” he said. “And I know what that varmint is, too. "You see, the watermelons are getting ripe over here. I’ve got 150 acres of them myself. This varmint is a horrible creature that some one conjured up to protect the water melon fields. “The varmint is doing a good job of it, too. Looks like we might get a crop this year.” New Hitler Offer To Spare Britain Is Reported Free Hand in Europe, Return of Colonies Terms, Rome Hears By the Associate'’ '-ss. ROME. July 16.—Diplomatic cir cles heard today that Adolf Hitler was preparing to make a last three point offer to Great Britain for a war settlement which would spare the British Isles from devastating attack. Diplomatic reports from Berlin indicated that Hitler might make an offer to Britain in a speech before the Reichstag within the next few days. Count Galeazzo Ciano is planning tentatively to go to Berlin before Hitler speaks to confer with the Germans on terms as Premier Mus solini's representative, diplomatic sources said. Private advices from Berlin indi cated that Hitler probably would offer Britain plans for: 1. A European settlement of con tinental affairs; 2. Return to Germany of those colonies taken from her by the British after the World War; 3. Economic rehabilitation of Europe. Gold •‘Mediator” Role Hinted. Britain might be offered the rri of mediator between the gold-stanc ard countries, including those of the ; Western Hemisphere, and the na j tions of Europe in a world eco nomic adjustment, these sources I said. I This was interpreted in some | quarters as meaning that in the j reorganization of Europe after peace Britain would be asked to work out some “harmonizing” economic re lations between the so-called “gold ! countries." including the United States, and those nations such as Germany which operate on a planned economy, with little or no gold. j Since two-thirds of the world's gold is owned by the United States, : that Nation would have to play a major part in any such reshapmg of the international economic sys : tern. But. according to this informa tion, Britain would have to keep out. of continental European politics. It was recalled here that Hitler, in his Reichstag speech last October 6. offered a settlement in which h* proposed a conference of the big European powers. Since then a great part of Europe has fallen directly or indirectly un der German control or influence. ' leaving only Britain in opposition to Hitler's scheme. The first Fascist claims that Italy' is entitled to hold a protectorate over Palestine appeared, meanwhile, in the Rome newspaper La Tri'ouna. It argued that Britain, holding a mandate over Palestine from the League of Nations, is losing su ! premacy in the Mediterranean and that protection of the Holy Land henceforth is Italy's right as the strongest Mediterranean power. Republics Sounded by II. S. On Protectorate Plan By the Associated Press. SANTIAGO. Chile. July 16.—For eign Minister Cristobal Saenz dis closed today that he has received and is studying a note from the United States on establishment of 1 a protectorate over European posses | sions in Central and South America. Details of the communication were not immediately forthcoming. He has not indicated this Gov ernment's attitude toward a pro tectorate. but the plan was said in other informed quarters to be re ceiving favorable consideration here. Informed persons in Washington said the United States was sounding out other American countries on their attitude toward establishment of a protectorate over European possessions in this hemisphere. This sounding, they said, was part of the preliminaries on several questions likely to come before the Inter-American Conference opening at Havana Saturday. State Department officials said they had no knowledge of a formal note to the Chilean government proposing such a protectorate, but it was not denied that Ambassador | Claude Bowers may have presented ! a memorandum on the subject. Secretary Hull, when questioned yesterday, said the United States was exchanging ideas, suggestions and proposals on a variety of sub jects. as is the custom before a conference such as the one opening Saturday at Havana, The purpose of this, he explained, was to develop tangible proposals in advance for conference considera tion. Petain Cabinet to Discuss Moving Back to Paris By the Associated Press. GRENOBLE. France. July 16 Marshal Henri Philippe Petain, Frances authoritarian Chief of State, called a second ineeting of his cabinet in Vichy today to discuss reconstruction problems and the question of moving back to Paris. The newspaper Le Petit Dauphinois here hinted that there was more than reconstruction in the Petain governments desire to return to Paris. "From news coming from Paris.” said a dispatch from Vichy, “it may be concluded that there is urgent need to clarify the situation created in Paris by activities of certain political personalities whose loyalty to the Petain government is doubt ful.” There was no further indication of who these “personalities” were or what they were doing in the Ger man-occupied capital.