Germany has definitely lost the "frst round" in her attempts to wage intensive aerial warfare against the British Fleet and British merchant shipping, according to naval observers here. On the balance, it is said, ihe German attacks in the Firth of Forth show a complete triumph for the defence.
Generally, the intensive operations of German' bombers on parts of the British coast from October 16 onwards are regarded as of considerable importance, as it is the first time that modern aircraft have been pitted against modern warships.
In the raids on the Firth of Forth, Scapa Flow and on a British convoy in the North Sea. it is euthorinatively revealed, sixteen German long-range bombers were definitely accounted for at a total cost of thirty British casualties and slight damage to the cruiser Southampton, e des troyer Mohawk, and the "demilitariz. ed" battleship Tron Duke. All ships subjected to attack are said to have been ready for sea in a few days, and the only damage to the South-were not revealed to the press it is political quarters added, because then the Reich would stir up ampton was a hole in the bridge believed that the methods to be used in holding future conferences were outlined. All present at Monday night's meeting were of a common mind: that law and order should be enforced in the troublesome Western crea, scene of violence and bloodshed lest Friday owening and Sunday morning.
The meeting 1 ght was merely oí a pre! re and while the actual question of jurisdiction in the extra-Settlement areas did not arise the ed for future conv subject. the whole world's public opinion against it.
Consequently. there were three courses left open to Herr Hitler, these circles declared. They were:
1. Moss air attacks against British transports carrying supplies to the British Isles and the war fleet; 2. Accelerated war operations against Britain simultaneously with pursuance of an expansionist policy that would in no way alienate allies Uke Italy and Russia; fon of a "wait-and-see" only limited operations ish fleet and coasts and coco offensives" which.
Precautionary Measures of sheer boredom.
Meanwhile, emergency precautionary measures were still in effect at Vu Yuen and Edinburg Roads, scene of Friday's attack on the Sikh traffic ustable at that into Jessfield Road e scene of Sunday Ne between terrorists ard members of the Shanghai Municipal Police. Detachments from the East Surreys were still on guard at both places with sinister-looking machine guns peering over the tops of sandbag emplacements, The Royal Italian Marines continued their vigilant patrol of their sector from which the SMP, had withdrawn on Sunday.
Press Warns Against "Die Hards"
Continued efforts by the authorities of the Shanghai International Settlement and third party Powers to "maintain privileges acquired by aggression" in Shanghai by means of international interference in the solution of local problems "will only lead to the hastening of the inevitable settling of all pending problems involving the International Settlement by force," the Shanghai declared editorially. yes-
Suggestion Welcomed The suggestion of the "North-China Daily News" inviting Japanese mediation in the question was wel. comed by the "Tairiku Shimpo, which, however, pointed out that a satisfactory settlement could not be anticipated if the Shanghai Municipal Council continues to show the attitude towards the authorities of the "Special Municipality" of Shanghai and Japanese officials it displayed in the incidents on Vu Yuen Road on Friday and on Jessfield Road on Sunday."
The statement issued by Mr. G. Godfrey Phillips, Commissioner-General of the Council on Friday night a few hours after the Vu Yuen Road attack was singled out by the "Tairiku Shimpo" is reflecting an antagonistic attitude towards the "Special Municipality" of Shanghai and the Japanese authorities, Analysing these courses, observers said that the first would have serious repercussions on Germany's air force for less planes would be left for offensive action along the war fronts. In pursuit of the second, they added, Germany would probably attack Denmark and Rumania to obtain raw The German Minister in it was pointed out. had already complained rather threateningly about Rumania's alleged nonobservation of strict neutrality.
The only certain thing about the Reich's eventual war policy, British political quarters concluded, was that operations would be concentrated against Britain, if only because of France's lesser vulnerability due to her self-sufficiency.
Herr Hitler may summon a meeting of the Reichstag within the next few days to read out to it the Reich's formal declaration of war against Great Britain and France, the Amsterdam correspondent of the "Daily Mail" reported today. He adds that the huge publicity given the Foreign Minister's address today seems {o indicate that Herr von Ribbentrop's group, which includes Herr Heinrich Himmler, chief of the Gestapo; Herr Rudolph Hess, Deputy oder of the Nazi Party, and Dr. Joseph Goebbels, the Propaganda Minister has gained in influence to he detriment of the moderate fac-
Yon of Field Marshal Hermann Goering; General Walther von Brauchitsch, the Commander in Chief of the Army, and Dr. Withelm Trick, the Home Minister.—Havas.
Text read from the printed page and cleaned; old type leaves the occasional error.