MOTHER COUNTRY.

Taranaki Daily News, 3 August 1918, Page 5

MOTHER COUNTRY.

THE POSITION REVIEWED. OUR RESERVES NEW GREATER SH£N ENEjfe'S; GERMANS' UNFAVORABLE-POSi-TfON, MORE HOPEFUL OUTLOOK IN RUSSIA.

Received Aug. 2, 7.20 p.m. London, Aug. I. The enemy skilfully conducted, his retreat, and has not lost many guns, but We have collected a large quantity of material, especially bridging, which proves that the enemy's intention was to throw large forces across tha River Marne towards Paris* GERMANS' FUTURE INTENTIONS. It is impossible to say definitely what the Germans' future intentions will be.. They seem determined ,to hold the present lines, but their position is unfavorable with the Aiane in the rear, all thebridges over which are being bombarded by the Allied airmen, leaving communications precarious. The enemy has only four traffic circuits, which are hardly sufficient to supply the troops in the salient, as he is burning villages southpast of Soisson3, which may be an indication of further withdrawal.

A DISADVANTAGEOUS POSITION, o It is improbable that the enemy will retire beyond the Aisne, but the longer he continues where he is, the better for the Allies, as any of the Aisne is disadvantageous to the enemy. Every passing day reduced the possibility of a successful offensive on Prince Rupprccht's part. For the first time since March the Allies' reserves greatly exceed the fresh German reserves. The enemy has 210 divisions on the West front, while one division is known to have recently gone to the eastern front. The Germans may be forced to transfer further troops from the West.

GERMANS NOT LOST THE INITIATIVE. The enemy ha 3 not entirely lost the initiative. Even if unable to resume the offensive, he will be able to transfer troops, and may take the offensive in either the Balkans or Italy before the winter. AGAINST THE 3VIURMAN RAILWAY. Although |no present indications of such a move, there are signs that Germany will adopt the offensive in cooperation with the Finns against the southern part of the Murman railway before the winter. There is intense hostility among the population against the Germans. They are averse to war, and dependent on the Entente for food. Nevertheless, as the Germans control the Finnish army, there ia every reason to anticipate warlike co-operation of the Finnish army, which numbers about sixty thousand, whereof about half are able to participate in offensive preparations. THE UKRAINE MENACE.

The Ukraine rising has assumed large proportions, menacing the Austro-Ger-man communications. The Ukrainians have blown up an important bridge south-east' of Kieff. The Czechs are making good progress eastward of Vladivostock. The Bolsheviks' efforts to mobilise the war prisoners appear to have been unsuccessful, but the Czechs' situation westward is not so favorable.

FRICTION AMONG ENEMY AT.T.TRS

There is great friction between the Turks and the Germans in the Caucasus, the latter trying to prevent the Turks from securing control of the Baku oil wells.

There is evidence of a growing discouragement among the Bulgarians, chiefly due to the German exploitation of the food supplies, and also to the increasing hostility towards the Turks, and general war weariness. A mutinous spirit is prevalent among the Bulgarian troops.—Press Association.

THE FINANCIAL POSITION. SPLENDID AMERICAN HELP. AS VITAL AS THE BRITISH NAVY.

Received August 2, 7.20 p.m. London, Aug. 1. In the House of Commons Mr. Bonar Law, in moving a vote of credit for £700,000,000, said this large amount was not due to an increase in the rate of expenditure, but simply was dictated by the convenience of Parliament. The Allies now owed the United States £1,402,000,000, compared with £1,332,000,000 at the end of the last financial year, while the Dominions owed the United States £208,500,000, compared with £194,000,000, and Russia owed her £568,000,000, France £402,000,000, Italy £313,000,000, and the other Allies £119,000,000.

He emphasised the value of this assistance, which, until America came into the war, was as vital as the British Navy. He could not praise too highly what the Dominions had done. The war irrecoverable expenditure for 104 days had been £547,000,000, or £331,000 daily below the estimate. The recoverable expenditure for the same period was £176,500,000, exceeding the estimate by £307,000 daily.—Renter. Received August 3, 1.15 a.m.

London, August 1. Mr, Mackenzie, following Mr. Bonar Law, said that before America entered the war Britain was paying her about 10,000,000 dollars daily. Now America was meeting the cost of nearly all Britain's and the Allies' purchases. Mr. Bonar Law's department was almost wholly engaged in financing Britain. The vote was passed unanimously.

CADET OFFICERS' CLUB. London, Aug. 1. A' club for overseas cadet officers has been opened in Regent's Park, and is catering for many hundred Dominion youths who are training in England.

LUXURX TAXES. London, Aug. 1. The. Luxury Tax Committee propose a tax of 3s 4d in the £ on all purchases of thoroughbred racehorses which are valued, abova |£lso.—Aus. NX Cable >Am*

GOVERNMENT'S ECONOMIC , POLICY. A DECLARATION WANTED. Received Aug. 2, 0.5 p.m. London, Aug. 1. The Press Bureau states: Replying to a deputation of two hundred manufacturers; introduced by Sir Edward Carson at the House of Commons, who urged an early declaration of the Government's economic policy, the Prime Minister, who was accompanied by Mr. Bonar Law, emphasised that such declaration was being delayed by war pre-occupations, and also by the necessity for keeping in touch with, and being in complete accord with, the Dominions and the Allies.—Aus. and N.Z. Cable Assoc. and Reuten

THE LONGER THE WAR' LASTS TEE-STERNER THE-TEEMS•FOR ENEMY, Received August 2, 9.50 p.m. London, August 1. Mr. Lloyd George, continuing Ms reply to the deputation, said the Government had been discussing the problem with the Dominions during the last few weeks, and had a discussion with the Allies before America entered the war. Hitherto America had not expressed an opinion on the Paris resolutions.- It was vitally important that the policy of the United States that the policy of British should completely agree. All lie could say at present was that ho was very hopeful, because an inter-Allied agreement on these great problems meant that the economic fate of the world would be in the hands of the Allies.

The Premier emphasised the necessity of securing the essential industries against unfair attack and unfair competition. These industries were essential not merely from a commercial viewpoint, but from the viewpoint of national defence. He did not doubt that they would reach an agreement in this regard. No government could possibly avoid giving the earliest and deepest consideration to the matter. The longer the war lasted, the sterner must be the economic terms imposable on the foe, and the sooner the foe realised that, the better.—Press Association.

Received August 2,11 p.m. London, August 1. Mr. Lloyd George, continuing, said: We must be in a. position to determine what will be fair conditions, without having them imposed by the will of the enemy. He agreed that immediately after peace was declared there would be industrial dislocation. One of the great difficulties would be where and how to get raw material. Transport difficulties would also prevail during the first years of peace. Those questions demanded the most careful consideration, combined with a complete understanding with the Allies and the Dominions.

Mr. Lloyd George proceeded to say that no one ever dreamt of continuing the present system of Government control after the war. —Press Association. THE-LESSON" OF THE WAR.

Received Aug. 3, l-2.50> a.m. London, August I. He agreed that this country's strength before the war lay very largely in the ingenuity, self-reliance, adaptability and resource of individual effort. At the same time, there was the lesson of the war, wherein the State had done good work in. assisting and encouraging industries, coupled with combined effort amongst the industrialists. Magnificently as the business and industrial communities had shown a capacity to organise for the war, he quite agreed that when the war was over the present absolutely necessary interference in business by the State must disappear. During the transition period they were not going to get raw material without considerable Government interference.

They must also organise transport. They had to see that the Dominions received a fair share of British manufactures. The Allies also were entitled to receive assistance from Britain in the re-equipment of the essential conditions of their industrial and national life. Perhaps a business order might come from an enemy source, more remunerative than an order from Britain, the Dominions or the Allies.

CONSIDERATION FOR OUR ALLIES.

He thought they ought to sea that the people who were fighting together should be served first. "Don't let us make the mistake of dissolving partnership whenever the war ends. The world won't come right immediately after the war. If you dissolve partnership with all these great peoples—a partnership cemented with blood—there would be men quite ready to take advantage thereof, even when the war is over. Therefore it is vital that when the war is over, and the transition period comes, when there will not be enough to go round, we must keep the partnership going and help each other to the end, so that the brotherhood shall remain." * CONSIDERING THE PROBLEMS ANEW.

The Premier deprecated tlie revival of past controversies. "Let us consider the problem anew. It's the only way wo can secure absolute national unity I shall be very surprised if you are hoc quite satisfied with the Government's statement when it is made, but first we mast get into closer contact with the Allies, and see that there's no declaration that will in the leastwise interfere with Allied concord, goodwill and cooperation. Be assured it will be the chief concern of the Government to see that the'great industries, whereon the strength of the country depends, shall be developed and strengthened,

MR. BONAR LAW'S VIEWS. Mr. Bonar Law, following, dealt with the question of control. Ho Baid that the Government was anxious to abandon the waT-time restrictions at the soonest possible moment, and to allow individual competition free play. He pointed out that perfect freedom at the end of the war was impossible. He fully believed a corner would be organised of all the staple raw materials, and that their old enemies would arise.

One lesson of the war was- the necessity of not only thinking of the profits that manufacturers could make, but the conditions of the men who worked for them. The war rendered one step easier, Which was au immense move forward in the whole conception of trade policy, namely the Government's acknowledgment of the principle that we were one .Empire, and of preference within the

Empire. He was convinced that the whole country would endorse, the Government's decision.

One of the lessons of the war was the necessity to produce where possible such things as were essential. Preserving the country's safely and independence was the best way, whereto we would got the largest possible amount of unity and support to any plan the Government proposed to adopt. Mr; Bonar Law believed that if the conditions of labor were to be maintained there must leastwise be stability on the Home market, He emphasised that Government consideration of this matter was difficult and complicated, owing to the fact that they must think of their allies. Fortunately a very large percentage of essential raw material was within the Empire, and the question of preference was going to be of immense advantage to the whole Empire, because the Dominions' present policy of placing their produce at the disposal of the Empire would continue after the war. He was confident that the statement which the Government would be able to make would not conflict with the views of any of the Allies, especially America, whose goodwill- was vital

THE EASTERN PROBLEM. FUTUEEFULL, OE-EXOOURA.GEMBST London, Aug. L The murdpr of General von Eiehora, which has caused consternation in official circles in Germany, has focussed public attention in Britain and Franco upon the Eastern problem. General Maurice says: The veil which h'as long shrouded the cojst is gradually lifting and what we are allowed to see is full of encouragement. The dramatic operations of the Czecho-Slovaks in Siberia and the south-eastern corner of European Russia, the appearance of Allied troops on tho Murrnan coast, the resistance of the Armenians at Baku, coupled wilbh the decline of the Bolsheviks and the troulbes in which the German's are involved in the Ukraine, show that tho treaty of Brest Litorok is likely quickly to become valueless. It is improbable the Germans hoped for territorial aggrandisement in the west, except for a rectification of the frontier gaining tho Hriey mineral fields. Germany looked eastward for expansion. Germany drew Turkey into the war as a catspaw with a view of snatching from Britain her positron, as dominant .Power in the East and transferring her power to Gottoctjv Our success in Mesopotamia and Palestine forced Germany to seek a way round, and Russia's collapse opened the way. Germany entered the Ukraine and to Odessa and Sebastopol, not merely for the purpose of gaining them, but in order to take possession of the valley of the Don and thsmelby obtain control off the Black Sea and establish a base controlling the lower watoi% of the Volga and also secure access to the northern shores of the Caspian Sea. Simultaneously Germany urged the Turks forward on the south coast of the Black Sea, wit!h a view ,of dominating Persia. i

. GERMANY'S NEXT YEAR PROGRAMME. London, Aug. I. Tha Germans next year 15111 probably avoid a battle in ,the •west, gradually falling- back and devastating the country. Then Germany will cunningly begin bargaining and ask France how long she will permit the north of Fiance to be laid waste in order to-support Britain's eastern ambitions.

If Germany is allowed to realise her eastern programme «2ie will emerge from the war relatively stronger than when she entered it and remain as great a menace as ever- Tliait is one of the reasons why we cannot afford a patcliedup peace, and must convince our allies thajt it is essential to raise a barrier'to Germany's ■ eastern progress. We musit act in the east, where the miraculous creation of the Czecho-Slovak army provides our opportunity,

POLITICAL YEAST. London, Aug. 1. The Leader says tliat Lord Lansdowne speaks for himself, but his letter emphasises the urgency of Mr. Lloyd George announcing a clear-cut programme and drastically reconstructing the Government, dispensing with the ill-chosen, tired colleagues, and re-shaping politics on patriotic lines, uniting the best elements of Unionism, Liberalism, and Labor.—Times Service.

The Daily Chronicle says the feeling is growing that a general election before the end of the year is undesirable, seeing that an overwhelming majority of the people favor the war. The Times declares that the opposition to an election comes from extreme pacifists and hard-shelled reactionaries. "We tell both plainly that an early, election is as inevitable as the rising of the sun." —Renter.

ALSACE-LORRAINE. Received August 3, 11 p.m. London August 1. The Swedish Socialist M. Troelstra, interviewed, denies Mr. Henderson's statement that German majority Socialists were prepared to discuss the AlsaceLorraine problem. He reaffirmed his earlier declaration that the question was unsuitable for discussion by an international conference.—Press Association.