ITALY’S TROUBLES

Waikato Times, Volume 129, Issue 21584, 21 November 1941, Page 6

ITALY’S TROUBLES

HIGH COST OF LIVING ANTAGONISM TO GERMANS FRIENDLY TO BRITISH United Press Assn.—Elec. Tel. Copyright) ( (Received Nov. 21. 3.15 p.m.) NEW YORK, Nov. 20 Italy is in the grip of swift inflation, with the Government spending 80 per cent of the national income on the war but collecting only 20 per cent in taxes, says the HeraldIribune’s correspondent, Mr Allen Raymond, in a message from Rome. Most of the difference is rolling from the printing presses in what is called money. The cost of living has risen 50 per cent. The Government’s policy of blocking prices on a few commodities has proved futile and wealthy people are putting their 1 j money into land and anything tangi ible that may survive the collapse • | of currency. Most of the stores in Rome are virtually empty, with the sale of anything containing textile or metal ■ | materials forbidden. The stores : j have been closed partially to protect • I the Italians against their German j allies, who pour through the country } in thousands, carrying plenty oi ■ money and buying everything not t : available in Germany. | Where the Germans get their I money is no secret. When the British drove the Italians out ot East Africa ; and Ethiopia they captured enori mous quantities of printed lire, which were dumped on the Swiss market and bought up by the Germans at : GO lire to the dollar, compared with , the official rate of 19.80. While the Italians are eating less | than they like, it is reported that ; their health is improving as a result. The people of Rome have absolute faith that the British will not bemb the capital or other cities except where they are really military objectives. There i is an actual feeilng of friendliness towards Britain, in contrast to the anti-German sentiment. AUSTRALIAN MUNITIONS ; SUPPLIES FOR EAST INDIES i j UNINTERRUPTED PROGRAMME | it inte.l press Assn.—Elec. Tel. Copyngnii • I (Received Nov. 21. 3.15 p.m.) • ; CANBERRA, Nov. 21 I The Minister of Supply, Mr Beasley, i has ordered the Supply Department to prepare plans to dovetail special ; production orders from the Netherlands East Indies with Australia’s own production of war materials and civil supplies. Mr Beasley’s decision followed a conference with the East Indies purchasing mission, members of which said the Indies Government is eager tc establish a permanent purchasing office in Australia. At present Australian factories are producing munitions and other equipi ment for Australian military and ’ j civil needs, the New Zealand Government and the Eastern Group Sup--1 ply Council at Delhi. Continuity of production has not always been maintained in these industries. and the East Indies mission suggested that in slack times production should be swung over to the fulfilment of Dutch requirements. This could allow an uninterrupted manufacturing programme in Australia and enable the Indies to obtain urgently-needed munitions and 1 other supplies. AT THE CROSS ROADS JAPAN’S FATEFUL HOUR PROMOTE FIGHTING SPIRIT iUnited Press asst,. —Elec. Tel. Couyri*ut) (Received Nov. 21. 3.15 p.m.) TOKIO, Nov. 21 The Premier, General Tojo, explained to the Upper House Committee that a large amount of reserve funds is being kept because Japan is confronted with an unprecedented crisis. She literally stands at the crossroads and must rise or fall. Addressing the Lower House Committee Major-General Kenryo Sato expressed the opinion that Japan’s next war, if occurred, would be aimed at breaking the anti-Japanese encirclement and would be an unprecedently large-scale battle, wherefore it was urgently necessary that the Japanese people promote the lighting spirit. He warned that it would be impossible completely to shut out enemy planes, which undoubtedly would bomb Japanese wooden houses in an effort to break the people's morale, wherefore Japan should maintain the greatest composure irrespective of eventualities. PITCHED BATTLES ENEMY FORCED BACK (United Press Assn. —Elec. Tei. copyright) (Received Nov. 21. 3.15 p.m.) LONDON, Nov. 20 Pitched battles are developing at strategic points on the Tula front, says the Tass Agency. The enemy at many places has been forced back on j the defensive. ! Soviet infantry strongly attacked a group of German tanks and mechanised forces which drove a wedge into the Russian lines. PEOPLING DOMINIONS IMMIGRATION PROPOSALS (United Press Assn.—Elec. Tel. copyright LONDON, Nov. 19 i The suggestion that the Dominions ! ‘ should investigate the possibility of j admitting emigrants from the Scanjdinavian States, who largely shared the Empire’s views and to some ex- ■ , tent were of the same blood, was 1 made by the Duke of Devonshire, chairman of the Overseas Settlement Board, in a speech. ' , “Our population figures are really | alarming from the viewpoint of the ' future of Britain and the Empire,” ■ j said the Duke. “The Dominions wll | soon be faced with the problem of ! diminishing populations. When the : Dominions carried larger popula i tions world peace was secured. IT the Empire's population in 1980 had been double what it was, there would have been no war.”