Despite flamboyant German claims of important successes in Norway against the Allied troops, a survey of all reports, including the German, clearly indicates that no action of major importance has as yet occurred, and that all that is happening at the present amounts to no more than sparring for position. The enemy appears to have moved northward from Trondheim, and to have occupied Steinkjer, and are said to be digging in north of that town, while increased pressure in the southern theatre of war forced the Allies to withdraw from Lile-hammer. The War Office communique accuses the German propaganda machine of lying when it states that British forces in Norway have been "cut to pieces and compelled to withdraw in disorder," points out that nothing of the sort has occurred. When the comparatively large advance guard, which was pushing towards Trondheim, was threatened by the German advance of their positions, the Allied forces made a strategic retreat to safe ground, where they were not followed by the enemy. The War office admits that the British suffered some casualties. The recent claim of the Germans that a Norwegian division had surrendered is also not in consonance With the facts, as the claim itself shows when it goes on to state that the number of men captured was about 1,000, Even a small army such as the Norwegian does not have such small divisions of no greater dimensions than a battalion. The magnification of a battalion into a division is on a par with other German methods of handling figures, and provides a criterion by which other claims may be judged. On the other hand in the north of Norway the Norwegians have captured an entire German battalion which was forced to surrender because of lack of food, ammunition and shelter, leaving a further 2,000 still in the Narvik region to be accounted for. The initial success which the Norwegians have gained will undoubtedly spur them on to greater efforts and it may not be so very long before the situation in and around Narvik will be completely liquidated.
On the face of the reports which are now being liberated, it is clear that up to the present the Germans have suffered greater casualties in despatching their forces over seas to Norway than they have in actual battle. Between April 9, when they first landed in Norway, and April 22, according to an official spokesman in London, twenty-six German transports and supply ships were sunk by Allied action, ten torpedoed and probably sunk, one set on fire, and four captured. Although not all these vessels were carrying troops, the casualties are reported to run into many thousands, some three thousand dead Germans having already been washed ashore in the Oslo Fiord alone. To that large figure must be added the casualties, at present not published, inflicted upon the Germans in the other theatres of war and at their landings, and, while it would be rash to endeavour to estimate a figure, there is ample reason to believe that the number already given will eventually be shown to have been much larger. When to that is added the great quantities of arms, ammunition and supplies which have also been lost, it is quite clear that the venture into Norway has already been a costly business for the Germans, and unless they can adequately protect their lines of communication by sea,—which seems unlikely in view of the heavy damage done to the German fleet,—will probably prove even more expensive. In the battle in the air over! Norway which is: increasing in an enormous crescendo, the Germans appear to be having the better of exchanges at the moment, though as every day passes the strengthening of the Allied air forces in Norway and the creation of new bases, gives promise that the balance will be adjusted in the not too distant future. The fact that the Allies are able to attack German bases, with what amounts almost to impunity, indicates that whatever advantage the Germans may have in the air is by no means overwhelming. The constant bombing of German air bases established in Norway is having the effect of rendering them practically useless, and as long as this can be maintained, the utilization of greater German air strength than that at present in operation, must remain a matter of considerable difficulty.
The German claim that all the reports appearing in the various newspapers of the world relative to a probable German onslaught on Sweden is in reality Allied propaganda designed to justify their own coming attack on Swedish neutrality, is all of a piece with other enemy allegations. The Allies are not in such pressing need for Swedish iron ore that they would lightly run the risk of throwing Sweden, sympathetic with their war aims, into the arms of the enemy. The fact of the matter is that the Swedish iron ore is of prime importance to the German steel industry, the German ore being so poor that an admixture of Swedish ore is necessary. The withholding of these supplies is consequently a very grave matter for Germany, and as the Allies have closed the only possible outlet at the moment, a grievous blow has been delivered to the enemy. The situation is becoming complica ated because of the report that the Soviet would not look with any favour on the German occupation of the Aaland Islands, as an incursion into their sphere of influence at the north of the Baltic Sea. Reports are current that German transports in Baltic ports are taking on large numbers of troops suggesting that an early onslaught on Sweden is contemplated. They will not get the walkover they had in Norway because the element of surprise no longer exists, and Sweden is in a better position than her neighbour to offer strong resistance. The extension of the Scandinavian adventure in the manner which is believed likely will only serve to increase German difficulties requiring the use of large bodies of troops dependent upon lines of communication which can always be interfered with so long as the Swedish navy is in being. As the German sea force has been so considerably reduced it should find it by no means easy to secure control of the "Baltic which is necessary if any move against Sweden is to succeed. The conclusion to be drawn is that an onslaught on Sweden is not only not to be greatly feared, but to be regarded as the inevitable corollary to the original mistake of the invasion of Norway. Thus despite inflated German claims, the situation is such as to give no cause whatever for undue anxiety, for paper victories do not win wars. 4
A Risky Plan That there should be uneasiness in Japanese business circles over the plan of the Japanese Army to endeavour to control profits in an endeavour to reduce prices is quite understandable. Whether the scheme will put an end to the long disagreement between the army and the capitalists of Japan remains to be seen, though the possibilities are that it will not do so, though it may serve to drive the disagreement underground. The military who favour this scheme will in all probability find the problem they have to face rather more difficult than they appear to think it is at the present time. It is one which other nations have had to deal with, and which the Allies are facing at the present time, and the finding of a solution is a matter of very considerable difficulty. The economic system of any highly organized country, such as Japan, is much too complex for any such simple solution which the Japanese military appear to have in mind to prove effective. The contention of the industrialists that unless economic problems are solved at the fundamental sources of maladjustment no rigid bureaucracy can succeed through arbitrary methods which ignore basic causes, is one which is supported by most economists throughout the world. It has been rightly pointed out that the task of any form of war finance is to reduce popular consumption. Taxation and borrowing dd it by taking money out of the pockets of the people before they can spend it. The fact of the matter is that in Japan inflationary Pincreases in prices and the deterioration in the standard of living are inevitable in a system of war financing such as has developed, and it is doubtful whether at this late hour the Japanese Army will be able to remedy the trouble, for, now, drastic med-sures designed to stop inflation, rather than control it may have the effect of throwing the entire economic machinery out of gear. It may be possible to control profits, but, if in doing so grave interference with the economic life of the country results, a more serious situation than at present prevails may be brought about.
Unfortunate Incidents The situation in the Mediterranean has, if anything, been worsened by two incidents, the importance of which may be emphasized in the course of a few weeks. The first is the snub administered to the French Ambassador by Count Ciano. The former called upon the Italian Foreign Minister, and suggested the possibility of resuming Franco-Italian talks for the purpose of endeavouring to arrive at a settlement of outstanding differences, only to be told that the Count regretted that the moment was not opportune. A rebuff of that sort is not conductive to an improvement in the prevailing atmosphere, and can be taken as definitely tending toward further deterioration of the general situation. The second incident was the speech by Signor Francesco Giunta in which he forecast the spread of the war until it becomes a conflict between the "haves" and the "have nots," claiming that France had always been hostile to Italy and that the traditional friendship between Great Britain and Italy was nothing but a common place denied by history and fact. The Italian Press campaign of last week having died down, it was thought that there would be some possibility of reaching a better understanding with Italy. It now appears that the Government of that country desires nothing of the sort, and that high officials are contemplating the extension of the war, not through Allied action but by that of other nations, such as Italy fighting, not for Germany, but at her side. There will be very great regret indeed if any such development takes place, especially after the endeavours which have been made to secure better relationships between Great Britain, France and Italy. That they have failed in the past is because the first two nations have not been prepared to grant everything which the Italian Government has demanded. Some of those demands cannot be granted even now, but there is much cause for misunderstanding which could and should be removed. If by Italian action the war is spread, that will be a contingency with which the Allies may be expected to deal, though they would prefer not to have to do so. When Signor Giunta alleges that when Italy announced her non-belligerency some people began to think that there would be a repetition of 1914, he said something which undoubtedly was believed in some quarters, but those were not official. The Allies undoubtedly would like to win this war unaided, Tightening Things Up Amongst the more welcome news that has recently come to hand is that the British Government is taking more drastic action against enemy subjects resident in Britain than was contemplated at the commencement of hostilities. Of the several thousands of Germans resident in Britain only a few hundreds were at first interned, the balance being exempted. Now Sir John Anderson has set up twelve regiona! committees to review the decisions of the previous tribunals which sat to consider the position of aliens in the country. It is known that the police generally were dissatisfied with the decisions which were reached, and considered many of them far too lenient leaving too many suspicious characters free to carry on their nefarious activities. The manner in which the Nazi "fifth column" has been operating in other countries and more especially Norway of late, where German sympathizers and spies assisted in the landings of the German troops has been sufficient to put the British Government on its guard, and men who might otherwise prove to be a nuisance or positive hindrances to the successful prosecution of the war are now being placed where they can do no harm whatever. The possibility of official action against Britons who fall under official suspicion has now become a reality, and traitors or suspected traitors may soon find themselves interned for the duration of the war. This, and the proclamation of certain districts as "protected areas, from which aliens will be completely excluded should have the effect of tightening things up all round, while the possibility that amongst the refugees, who have been admitted into Britain, are in fact enemy agents has not been overlooked. Nothing in the nature of the spy hunts of the last war have yet been reported, but it is likely that when the Germans start bombarding the country people, who by their carelessness attract the attention of the populace may find themselves the. subject of unpleasant if necessary investigation on the part of the police and other authorities.
Text read from the printed page and cleaned; old type leaves the occasional error.