Washington, Sept. 4.
Sino-Japanese hostilities may result in sharp increases in United States exports to Manila, it was believed here to-day by Philippine and American business groups, It was recalled. that Chinese control much of the retail business in the Philippines, and they were expected, as a result of the hostilities, to decrease their purchases from Japan, which have been increasing steadily during recent years Meanwhile, an artificial stimulation of business in the Philippines, resulting from the hostilities, is likely increase the demands for numerous commodities, such as textiles, of which the United States is the most logical supplier if Chinese merchants in the Philippines boycott Japan.
Some business groups here believe that a protracted war might result in a complete about-face in the policy of the United States regarding early independence of the Islands because of the necessity of safeguarding economic interests.
Experts also believe that the possibilities for the increase of United States trade lie in the Far Bast as Europe is nearing the saturation point.—United Press.
Madrid, Sept. 4.
Two smashing attacks by Gen. Francisco Franco's insurgents on the north-west front near Madrid were! repelled here to-day, the soldiers) falling back onto a field littered with dead. The attacks lasted more than two hours, the troops meeting in hand-to-hand fighting with grenades and bayonets.
'At one point in the fighting, the insurgents captured the loyalists' advance position at E] Pardo, but the loyalists furiously countercharged and recaptured it, Military observers declared that} the loyalists' capture of Belchite would block General Franco's drive toward Madrid. The government radio reported that Belchite had been captured after the most bitter fighting. Each house was taken separately.—United Press.
Text read from the printed page and cleaned; old type leaves the occasional error.