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Local thundershowers tonight and to morrow; not quite so warm tonight; cooler tomorrow and tomorrow night. Temperatures today—Highest, 95, at 1 p.m.; lowest, 76, at 5:45 a.m. From the United States Weather Bureau report. Full details on Page A-2. Closing N. Y. Markets—Soles, Page 13. . ' An Evening Newspaper With the Full Day's News LOCAL—NATIONAL—FOREIGN Associated Press and iIP) Wirephotos. North American Newspaper Alliance, Chicago Daily News Foreign Service and The Star s 8tafl Writers. Reporters and Photographers. i/Si Means Associated Presa. 88th YEAR. No. 35,151. . WASHINGTON, D. C., SATURDAY, JULY 27, 1940—THIRTY PAGES. ** THREE TENTS I mm‘ ' ■■■ ... -. -- - - Accord Reached On Colonies At Havana Peace Subcommittee Agreement Revealed By Argentinian t Story by Garnett D. Horner on Havana conference on page A-3.) the Associated Press. HAVANA, July 27.—Agreement by • peace subcommittee on a plan to prevent European possessions in the Western Hemisphere from falling Into different, hands was announced today by the Argentine chairman. Leopoldo Melo. Dr. Melo said only the writkig of final drafts and agreements'were necessary before the report is pre sented to the full Peace Commission fit 4 p.m. His announcement came after the subcommittee had wrestled with the knotty question of European posses sions in the New World at a confer ence lasting since early morning. Solidarity Triumphed. » ^ was regarded as highly signifi cant that the announcement came from Dr. Melo, whose government had been considered the chief stumbling block to such an accord. The Argentines repeatedly had Insisted they would do nothing to offend European powers, who con stitute their best customers. I cannot say that the Argentine thesis triumphed." Dr. Melo said. "We all made concessions. What we can sav is that American solidarity triumphed." One delegate said the report prob ably would embrace some sort of resolution providing temporary ma chinery for emergency action, pend ing unanimous consent of all the 21 American republics. Everything was ironed out per fectly." said Miguel Angel Campa cf Cuba, one of the chief protago nists for an agreement to the United States proposal concerning Euro pean possessions. Meet in Hull's Rooms. The negotiators met at the un accustomed hour of 8 a.m. in Secre tary of State Hull's rooms, acceding to his feeling that the conference must abandon social activities, and even sleep, in order to reach a work able compromise on the question of foreign possessions. The delegates. Dr. Melo, Mauricio liabuco of Brazil. Miguel Angel ' Campa of Cuba and Narclsco Garay of Panama, consumed pots of coffee to stimulate them after their con ferences far into the night. At the same time proposals to de velop inter-American economy and strike vigorously at "fifth column" activities progressed through com mittees toward virtually certain! adoption. Hull Calls Subcommittee. Secretary of State Hull, striving for unanimous agreement without sacrificing vital objectives in the United States suggestion of "col lective trusteeship” over the Euro pean colonies, had called his Peace Subcommittee into session to resume efforts to satisfy Argentine objec tions. The basic problem was Argen tina's reluctance to enter any broad commitments on measures to meet possible emergencies. The Southern nation apparently was unwilling to lake action which might prejudice her future trade relations with Eu rope. On the other hand, the United States and most of the other repub lics evinced a strong desire to create machinery for quick and decisive action to meet any foreign threat involving control of French, Dutch or British possessions in the New World. The United States advo cates the trusteeship for any colony threatened with transfer. Three-Point Plan Seen. While the substance of the sub committee agreement was not re vealed, there were indications that a three-point plan had been worked out by the Peace Subcommittee, calling for: 1. A general declaration express ing. the republics' concern over the future status of foreign possessions and thair determination to defend this hemisphere. 2. Temporary machinery to deal with attempts to transfer sover eignty or control of these possessions to other non-American states or to acquire political domination by other methods. 3. An agreement embodying the "collective trusteeship” principle— joint American control if any nation found it necessary to adopt pre (See HAVANA. Page A-3.) Japanese Bluejackets Land North of Hong Kong Br the Associated Press. HONG KONG, July 27.—Japanese bluejackets, operating under cover of a bombardment from warships, landed today in Honghai Bay, Chi nese territory 70 miles northeast of this British crown colony, Japanese Navy officials announced. This landing followed earlier mining of coastal waters, bombard ments and troop landings along the Chinese coast south from Shanghai for the announced purpose of block •ng all potential avenues of supply of war materials for China. The Japanese previously had landed in Bias Bay, which lies between Hong Kong and Honghai Bay, At the same time. Japanese Army officials announced their units, meeting little opposition, had pushed northwestward in Chinese territory along the border of French Indo china in further efforts to close that route of supply. Informed sources said Japanese Army reinforcements last night were landed at the mouth of Pearl River to strengthen the garrisons near the Hong Kong border which three days ago beat off a strong Chinese attack II Duce Puts on Riding Show To Prove Fitness to Newsmen Premier Mussolini on horseback reviewing Italian troops recently. —A. P. Photo. By the Associated Press. ROME, July 27.—Premier Musso lini put his German cavalry mare over the hurdles today before 45 for eign correspondents so they might see how fit he is as he nears his 57th birthday. After 10 minutes of strenuous horsemanship, the Duce rpined in his mount, turned to a group of Nazi correspondents and asked in German: "Am I sick, weak, tired?” His query required no answer. Mussolini, who will celebrate his birthday Monday, permitted the cor respondents to view his early morn ing exercises on the vast, tree shaded grounds of his Villa Torlonla residence in Rome. Thp newspapermen were driven to Villa Torlonia in two buses provided by the Ministry of Popular Culture Nine Americans and 16 Germans were included in the party. Several houses, wide lawns, tennis courts and ponds were visible in the grounds through which the news men were conducted to a large rid <See MUSSOLINI, Page A-3.i Equipment for U. S. Army of 2,000,C33 Promised by Knudsen $92,000,000 Aircraft Engine Plant Planned; Shipbuilding Pushed (Text of Knudsen statement on Page A-6.) Bi the Associated Press. Assurances that the United States can gear up its arms production to equip a force of 2,000,000 men came from the defense industrial chief today as steps were taken to ex pand naval shipbuilding and con struct a $92,000,000 aircraft engine plant. Laying out a balance sheet of both the progress and problems of the rearmament effort. William S. Knudsen, Defense Commission mem ber in charge of production, said in a statement: “This can be accomplished just as fast as the best production facilities and techniques in the world can gain momentum through favorable congressional action upon this aug mented program." Congressional study of the pro gram, for which President Roose velt recently requested an additional $4,800,000,000, continued with Mr. Knudsen and Edward R. Stettinius, jr.. another Defense Commission member, testifying privately before a House Appropriations Subcom mittee yesterday. Senate to Debate Training Bill. The Senate will open debate early next week on the completed committee draft of a compulsory military training bill, only peace time conscription measure in Amer ican history. The only other im portant defense measure remaining is the $4,800,000,000 appropriation bill. Out of funds already voted. Mr. (See DEFENSE.”Page A-6.) Safeguards Promised U. S, Legislators in Sumners' Proposal Rayburn's Prediction of House Passage Cheers Representation Supporters By WILL P. KENNEDY. If the House passes the Sumners resolution authorizing national rep resentation for the District of Col umbia. and House Leader Rayburn predicts it will, all Federal inter ests safeguarding the national leg islators and other Federal officials from ever being placed at the mercy of a hostile State at the seat of Government will be written into subsequent legislation. That assurance was given today by Chairman Sumners of the House j Judiciary Committee which he ex pects will favorably report his reso- | lution at a special session on Tues day It. was made in response to demands made by Senator Norris, Independent, of Nebraska, ranking minority member of the Senate Judiciary Committee. Willkie for Suffrage. Meanwhile, from Colorado Springs Colo., Wendell L. Willkie. Repub lican presidential nominee, an nounced yesterday that he was in favor of suffrage for Washington. He indicated the original reasons for denying residents here the vote had disappeared, adding that now many persons in Government em ploy vote in their home States, with the result that thousands of Ameri can citizens of the highest type who have their homes and busi nesses in Washington are disfran chised. In general principle, he is for enfranchisement but has not ha<! time to acquaint himself with the problem in detail, he said. Senator Norris, in an interview, 1 (See FRANCHISE. Page^AT) --1 Summary of Today's Star Page. Page, i Amusements. Qarden Page. B-14 A-12 Church News, Obituary __ A-fi A-10-11 Radio_ B-12 Comics B-12-13 Real Estate B-l-6 Editorials ..A-8 Serial Story.A-7 Finance _A-13 Society _ A-7 Lost, Found -B-7 Sports ..A-14-15 Foreign Havana group agrees on plan for Europe's colonies. Page A-l 100.000 tons of ships sunk. Germans declare. Page A-l British battle clouds of Nazi bomb ing planes. Page A-l Time is ripe for Rumanian revision. Nazis declare. Page A-l Reich reported herding French pris oners across border. Page A-3 Direct military aid pacts sidetracked in Havana talks. Page A-3 3 Rumanian ships seized by British at Port Said. Page A-4 National. President sets up machinery to aid European refugees. Page A-l Iron and oil exports curbed by U. S. licensing order. Page A-2 Gov. O’Daniel faces 5 opponents in Texas primary today, Page A^3 Sports Spurting Chicago Cubs gain on second-place Dodgers. Page A-14 Clark and Dietz, “unknowns,” clash for muny golf crown. Page A-14 Kovacs blocks Riggs’ way to Sea Bright bowl ownership. Page A-14 Conn or Pastor, not Baer, to fight Louis in September. Page A-14 Restored harmony due to bring P. G. A. Mid-Atlantic tour ney. Page A-15 Editorial and Comment This and That. Page A-8 Answers to Questions. Page A-8 Letters to The Star. Page A-8 David Lawrence. Page A-9 G. Gould Lincoln. Page A-9 Constantine Brown. Page A-9 Alsop and Kintner. Page A-9 Jay Franklin. Page A-9 Misctllany Vital Statistics. Page B-5 Service Orders. Page B-5 Nature’s Children. Page B-5 Letter-Out. Page B-12 Bedtime Story. Page B-12 Winning Contract. Page B-12 Uncle Ray’s Corner. Page B-13 Cross-Word Puzzle. Page B-13 i Roosevelt Starts Purchases for War Refugees $50,000,000 Fund To Be in Charge of Wallace, Morgenthau By the Associated Press. President, Roosevelt today set up the machinery to purchase and dis tribute $50,000,000 worth of supplies for European refugees “who have been driven from their homes or otherwise rendered destitute by hos tilities or invasion.” In an executive order the Presi dent designated Secretary of Agri culture Wallace to purchase agri cultural supplies under the program and Secretary of the Treasury Mor genthau to purchase other materials and supplies. These officials and such other agencies as the President may desig nate later are to arrange for the purchase of the supplies and their transportation to points of embarka tion to be determined by the Ameri can Red Cross. Mr. Roosevelt designated the Red Cross as an agency to transport the supplies overseas and to distribute them. Provided Under Relief Art. The executive order issued by the President said his action was taken under the 1941 Relief Act, which provided $50,000,000 for relief of war refugees. Stephen Early, the President’s press secretary, told reporters the matter of arranging for distribution was the job of the Red Cross, 100 per cent. He made this statement in response to an inquiry as to whether the British had agreed to let the American relief supplies through their blockade. The order pointed out that title to the supplies passes to the Red Cross immediately on delivery and adds that an accounting for the ex penditures is to be submitted to the President not later than May 31. 1941. Meanwhile. Norman H. Davis, chairman of the Red Cross, said in a radio broadcast here last night that the $20,000,000 War Relief Fund almost had been subscribed and de nied any of the money had been confiscated by the German Army. The fund, he said, totaled $19,823, 510. Nazi Seizures Denied. In reference to rumors that Red Cross money and supplies had been seized Bty the Nazis, he asserted: "I am able to state categorically that the German authorities have not seized 1 cent, of Red Cross funds nor have they taken a single item of our supplies.” The national chairman also said his organization was ready for any emergency in this country. "As our armed forces grow in numbers and move to new places," he declared, "our Red Cross service will grow and move with them. And it will. I know, have new and im portant duties to perform. The unique experience of the Red Cross in disaster and distress, through research and practical experimenta tion, may well point the way to the use of mechanization, not for destroying human lives but for saving them. "We must also see that the coun try's qualified nurses and medical technologists are enrolled and made ready for any emergency that the war against preventable loss of life in the home and factory, in the water and on the highway is waged with ever-increasing vigor.” Mexican Oil Workers Fight Economy Decrees By the Associated Press. MEXICO CITY. July 27—Mexico's powerful Petroleum Workers Union. 18.000 strong, took drastic measures today against efforts to enforce President Cardenas’ recent decrees for economy in the government oil industry. The union told the general man ager and general sales manager of the Government Oil Administration it would do “everything possible” to have them ousted from office; peti tioned the Secretary of Labor for removal from their posts of the president of the Federal Labor Board and the board's representative for capital, and, as a trump card, reportedly was ready to call a strike of its 18,000 members. The union's secretary-general was said to have instructed all regional committees to call out their workers for a 24-hour strike at 10 a.m. Monday. A letter from the union to the two oil administration executives held them responsible for the industry’s large deficit, said to be 16.000,000 pesos ($3,200,000) for the first six months of 1940, and warned them the union would not permit enforce ment of the proposed economies. The union said it was not opposed to economies but objected to their being drafted ’’secretly” and at the expense of the workers when it claimed the real responsibility rested on maladministration and incom petence of the government appointed executives. Reuter's Correspondent Arrested by Japanese By the Associated press. SHANGHAI, July 27.—Reuters (British news agency) learned through private channels today that its Tokio correspondent, Melville James Cox, had been arrested for "military reasons” and is being de tained at gendarmerie headquar ters. . S' Reuters said British Ambassador Sir Robert Leslie Craigie was to see Japanese Foreign Minister Yosuke Matsuoka this afternoon in an attempt to obtain Mr. Cox’s re lease. Japanese authorities were believed to have banned publication of news of the arrest. M Heat Kills 2 Here in 24 Hours As Cool Breezes Are Delayed High of 98 Forecast for Today, Followed by Showers Tonight (Pictures on Page A-1G.) Thp District today counted its second heat death in 24 hours as the Weather Bureau announced that the Arctic breezes which werp scheduled to arrivp this morninE had been delayed and would not get here before tomorrow. The prospect for today was a high of 98 degrees, the forecaster said, followed by thundershowers tonight and tomorrow. The showers would signal the arrival of a mass of cold air which has been creeping down from the north. By 12:30 today the mercury had I reached 94.5. At the samp time yes terday the reading was 96. Workers in the Internal Revenue Building were dismissed at 10 a.m. j and othpr bureaus said an early i closing was being considered. An Emergency Hospital ambulance was sent to the General Accounting Office Bureau at Eleventh and F streets N.W. to treat a heat victim. This office, which was closed yester day after a number of employes had fainted, remained open this morn ing. A Casualty Hospital ambulance tSee WEATHER, Page A-3.) I Nazis Claim Sinking Of 100,C J Tons of 'Enemy' Shipping Damaging Air Raids On British Isles Also Reported by Command P* the Associated Press BERLIN. July 27.—Deeply en gaged on the one hand with diplo matic moves apparently aimed at territorial revision in the Balkans. Germany claimed fresh successes to day in the military' field at sea and in the air. A high command communique asserted the Nazis had sunk nearly 100.000 tons of ‘'enemy” shipping (\nd carried out several damaging air raids on the British Isles. The communique declared one submarine had sunk six armed Brit ish merchant ships totaling 33.700 tons, another had sunk 26.338 tons and the British destroyer Whirl wind. and a third had picked the 5.260-ton armed British merchant steamer Sambre out of a convoy and sent it to the bottom. The communique did not say where these attacks occurred or the period of time involved. (The loss of the destroyer Whirlwind was acknowledged by the British July 8.) Off the south coast of England, four merchant ships totaling 32,000 tons were sunk by speedboats, the high command said, while another ship of 2.000 tons was set on fire. The air raids, according to the Germans, were carried out against port facilities at Cardiff and Aber thow, Wales, and Hastings. England, as well as on a railway junction at Tunbridge Wells, southeast of Lon don, and on oil tanks along the Thames. Numerous fires were ob served after these attacks, the com munique said. Konoye Cabinet Agrees With Japan's Army Chiefs By the Associated Press. TOKIO. July 27.—Premier Prince Fumimaro Konoye and his key cab inet ministers were reported in ‘‘complete agreement” with Imperial Army headquarters today after an important conference on foreign and domestic policies. The session, disclosed in a brief official announcement, was the first liaison conference between army leaders and cabinet officials in two years. Three such conferences were held during Prince Konoye's first premiership, but his successors failed to continue the practice. The official announcement did not contain any details concerning the matters discussed, but said the im perial headquarters had suggested measures ‘‘to meet the supreme situ ation” and that the premier had ! outlined the cabinet’s domestic pol icy. A communique of the Japanese Foreign Office said British Ambas sador Sir Robert Leslie Craigie had asked Foreign Minister Yusoke Mat suoka whether, in view of reports of Japan’s inclination toward the Rome-Berlin axis, the situation would permit further British ne gotiations for good relations. Matsuoka said the Japanese for eign policy still was under delibera tion and hence there would be no immediate reply. British Planes Battle Swarms of Bombers In New Nazi Raids More Ships Cross Coast After First Assault Is Broken Up B* the Associated press. LONDON. July 27.—British fighter planes clashed with clouds of Ger man bombers roaring across the southeast coast today in the third successive day of unprecedented wholesale raids on England. While the swift R. A. F. ships: darted, turned and dived to the at- I tae-k against the streams of German craft, one big black Nazi bomber plunged into the sea. This was believed to be one of the ] two raiders officially announced as shot down in the day's engagements. More raiders crossed the coast two hours after this swarm of German attackers had been broken up. They. too. were driven back across the Channel by fighters and constantly booming anti-aircraft guns. Hii-Run Attack. In still another raid, four German bombers made a hit-and-run attack on a Southeastern English town. Each dropped a single bomb, which officials said caused no serious damage. The battle planes operated in and out of low-hanging cloud banks. A total of 29 German planes had been shot down in the preceding 48 hours. Today's daylight raids were a con tinuation of widespread night forays in which two persons, a man and a woman, were killed by Nazi bombs. The night raiders aimed their bombs at Southeast and Southwest England. Wales and Northeast Scot- I land. One house was wrecked and a number damaged in Southeast England. A youth in one southwest town said "our whole house tumbled down" when a bomb struck in the night,. "When I climbed out I found the | gas stove had been lying across my '• neck and the wash basin from the bathroom was on top of me," he said. "The ceiling was within 2 feet of the floor." Bomber Downed on Coast. One Nazi bomber was downed shortly before midnight on the Southeast coast. One house was wrecked and a i number damaged in that area, but ' the Ministry of Home Defense said that elsewhere the Nazi bombs fell in isolated regions with but little damage. One bomb in Scotland left a crater 25 feet deep. British pursuit ships were in con stant action throughout, the night. Royal Air Force planes mean while rimmed the British Isles in anticipation of wholesale renewal of Germany's month-old offensive which has hit hard at Britain's sea borne commerce. The press and public drew con fidence in the youngest service's ability to smash the attack from Air Ministry figures which revealed British gunners had shot down 286 German planes since June 18. It was authoritatively stated there was no truth in reports of a Ger man air attack on a convoy off Northern Ireland yesterday. These reports arose from evidences of a terrific sea battle witnessed from the Irish eoast. Just what did occur there was not disclosed in London. The Air Ministry and Ministry of Home Security announced in a morning communique that one per son was killed in bombings of the British Isles during the night. A f SIEVE, IS / HE SAPPING l AT COLORADO? ’tARLY £ > Italians Reported To Have Captured Fort on Sudan Border Native Ethiopian Troops Credited With Routing English Garrison By thv* Associated press. ROME. .July 27.—The capture of Curmuk. British-fortified town on the frontier between Ethiopia and the Anglo-Egyptian Sudan, was re ported today by the East African war correspondent of the newspaper II Giornale 'Italia. The dispatch said occupation of the frontier post, which has not vet been announced officially, was carried out by Italian Asicaris— native Ethopian troops—after a brief early morning attack by bomb ing planes. Fort Declared Razed. The air assault was said to have destroyed the fort, blown up muni tions dumps and set fire to the radio station. The British garrison was taken by surprise, the correspondent reported, and fled after putting up stiff re sistance. The attackers were said to have pursued, "annihilating several de tachments.” Curmuk is a customs station and center of a caravan trail, close to the frontier. On July 17. the Italian high com mand reported the capture of Ghezzan. another border town near Curmuk. and of Gallabat. also on the frontier some 200 miles to the north. Malta Violently Bombed. The British Mediterranean island naval base of Malta was bombed vio lently last night, the Italian high command reported. Destruction of two planes was noted. The Italian air raid on Gibraltar yesterday caused "indescribable panic” among troops and the small civilian population remaining at that British fortress rock. Stefani, Italian news agency, declared last night. Many soldiers were killed and many newlv-arrived troops / "deaf to all orders, threw themselves into the sea.” r.he agency reported, quot ing refugees which it said had reached Ceuta. Spanish Morocco. Vast Fires Set. The populace at Gibraltar "ran crazily through the streets." Stefani asserted while the aerial bombs set vast fires everywhere, especially in the vicinity of the arsenal. Some ships were hit also, it said, but the amount of damage was not known because of severe restrictions adopted by the British. The raid was described as lasting about 15 minutes, with the bombers coming over in waves. Italian Planes Raid Gibraltar Again LA LINEA. Spain, July 27 UPi.— —Italian warplanes attacked Brit ain's Gibraltar fortress again last night in the second heavy bombing raid in less than 24 hours, appar ently in an effort to drive British warships out of that stronghold. There were no reliable reports that any warship was hit. For 16 minutes bomb explosions and fire from Gibraltar's guns and warships rocked houses in La Linea and Algeciras, across a bay from the famous rock. It was believed here that the re ported toll of 4 dead and 37 injured in an early morning raid yesterday mounted higher with the second attack. Gibraltar Is Blasted By Long-Range Bombers GIBRALTAR. July 27 pT>).—Be sieged Gibraltar, assuming more and more a position of importance as the keystone of Britain's struggle for supremacy in the Mediter ranean. yesterday underwent its second major Italian aerial bom bardment In as many days. Long-range Italian bombers sub jected the towering rock to a 30 minute pre-dawn attack, but made off southward after being picked out by searchlights and anti-air craft batteries. The British said no casualties resulted. /Reports from Just across the border in Spain said four per sons, one a woman, were killed and 37 injured by more than a score of bombs dropped by six Italian btrinbers. These advices said the fortress radio trans mlttcr, docks near an arsenal. (See ROME, Page A^3J Rumanian Pact To Cede More Land Reported Minority Exchange With Hungary and Bulgaria Unsettled BULLETIN. ROME (&).—A virtual agree ment has been reached for Ru mania to yield part of Transyl vania to Hungary and part 'of Dobru.ia to Bulgaria, a usually well-informed source here said today. I An agreement to yield has been secured from Rumania, this source said, but details such as a probable exchange of minority populations remain to be worked out. Others in touch with Balkan j capitals expressed the belief that, | in exchange. Rumania will re ceive a guarantee of protection against Soviet Russia by Ger many and Italy. By the Associated Press. BERLIN. July 27 (Bv Radiol — Well-informed circles at Salzburg were quoted bv the Berlin radio to : day as declaring the time now has 1 come to liquidate “for good” the “unreasonable state of affairs” in which Rumania finds herself as a result of a British and French-made peace in 1913. “Germany today less than ever has reason to refrain from pointina out that the Reich is in favor of i reasonable Bulgarian and Hungari an claims.” the radio said. “Rumania's structure and con struction was created in a manner contradictory to all sense by treaties after Germany unfortunately was defeated in the World War,” it was asserted. Maneuvered bv Allies. Informed quarters were said to stress, furthermore, that Rumania was “deliberately maneuvered" bv the western powers. Britain and France, into an "unnatural part which, left alone, she was unable to play.” "It is emphasized that this policy must now be ended for all times and that Rumania herself realizes that her former policy must be liquidated," the radio concluded. "The time has now come when the ; unreasonable state of affairs which has led to permanent crises and is likely to create future complications must be solved for good.” Adolf Hitler today received Bul garian Premier Bogdan Philoff and Foreign Minister Ivan Popoff at his retreat at Obersalzberg after his conversations with Rumanian statesmen yesterday. The Bulgarians were received in the presence of Foreign Minister Joachim von Ribbentrop. Direct Dealing Urged. Rumania will soon deal directly with Hungary and Bulgaria in a “spirit of justice, fairness and com monsense' and not with a view’ merely to maintaining the status quo if German counsel prevails, authorized German sources at Salz burg indicated. Germany, it was pointed out, wishes peace and order in South eastern Europe, and does not share the view of Western pow’ers that such can be maintained only by maintaining the status quo. The revision of frontiers idea, it was said, is historically well found ed and. if the parties concerned ap ply the triple standard of justice, fairness and common sense, a real pacification of the Balkans can en sue. The German emphasis in discus sions with the Southeastern states men here, there authorized sources intimate, is on direct discussion be tween the nations concerned. In other words, it is to be expected Ru mania and Hungary soon will dis cuss their problems directly w’ith one another, as will Rumania and Bul garia. • Axis Held Not Arbitrary. Hitler and Benito Mussolini do not propose to establish their will arbitrarily in the Balkans, the Mag azine Berlin-Rome-Tokio said. The publication, issued under Nazi foreign office auspices, said the axis "doubtless" could be arbitrary, but was disposed to co-nperate to an extent corresponding to the Balkan nations' expressed desire for "nat ural, lasting freedom and orderly relations to one another.” Declaring that Germany and Italy are making a thorough houseclean ing in the Southeast, in order to fit i See SALZBURG, Page A-2.) Phillips and Cudahy Leave Monday for U. 5. By the Associated Press. ROME, July 27,—Ambassador Wil liam Phillips plans to leave Rome Monday for a brief vacation in the United States. He will be accompanied by Am bassador John Cudahy, who is re turning to Washington from Brus sels. Mr. Cudahy left the Belgian capital after Germany asked all for eign diplomats to leave Belgium and the Netherlands. Ambassador Phillips plans to fly to Madrid, where he will be joined by his daughter Beatrice. She has been visiting Alexander W. Weddell, United States Ambassador to Spam, after serving for several weeks 83 driver for an American ambulance unit in France. They will sail from Lisbon aboard the American Export Line's Excali bur August 1. Ambassador Phillips is understood to be eager to inform himself on Washington's diplomatic reports from other European capitals, from which he has been cut off since the war disrupted cdmmunications. Wiley Reaches Moscow. , MOSCOW, July 27 (/P>.—John C. Wiley, United States Minister to Latvia and Estonia, arrived here to day on his way to the United States following the dosing of the United States Legations in those countries.