Moscow, Jan. 16.
The Soviet Union to-day suspended payments due to Italian firms and announced a heavy programme of naval construction to compete with Japan, Germany and, Italy.
Russis new naval construction programme indicated that she was now entering a race with Japan for supremacy in Far Eastern waters.
With respect to the non-payment of money to Italian firms, the Tass News Agency explained that suspension was ordered for the protection of Soviet organizations which had not been paid for shipments to Italy. The shipments included oil and pig-iron for warships, Tass stid.—United Press,
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