Show economic E conom ic n highlights for a time it seemed that the russo kusso japanese incident on the border might marl mark the beginning of the long feared second world war that could have easily happened as every european observer littler hitler would be almost certain to invade the ukraine if the soviet became engaged in major hostila ties on its far eastern frontier As aa a result the truce camo came as a welcome surprise to a war fright ened world thus thug on vie the face of it the ola incident aident t was of little significance all Is involved was a territorial dispute concerning whether japan or russia was the rightful owner of it a small area of little populated and practically barren land the russians i clai claimed nied tho the area using as evidence old tsarist maps japan disputed tho the accuracy of these maps and hostilities followed culminating mina inina ting military phase of tho the month long 0 engagement n g a g 0 in 0 n t which claimed about five thousand lives according to unofficial reports was a russian artillery barrage of tho the japanese positions which observers characterized as the most seare severe seen in the world since 1018 if you go beyond the surface however the incident takes on con sider ably more importance it dem two things of great significance ance first the USSR la is ready and willing to fight when no other solution seems present and at the same time Is eager to conclude its disputes peacefully it if jt it can second it demonstrated the great military rind and economic weaknesses of choson the son of heavens empire I 1 As one news commentator said the upshot of the incident was a sweeping military and dip diplomatic loinal defeat for nippon it is reliably reported that high japanese officers reported to their emperor that they lacked the supplies and men for waking waiting even a brief war in III the siberian territory the chinese aggression which Is dragging on month after month has made a mockery of japanese expectations of a quick and easy victory and has drained the lie empire dry As a consequence tile tho japanese had the humiliating experience of submitting almost in III their entirety to soviet foreign commissar Liti terms of se settlement b tl fl tho the japanese government ment for the time being at least lias has accepted the russian view of the divi dividing dirig lines official jap onse government statements attempt to cover this up but it la Is a fact as reference refe renco to your atlas will demonstrate what does all this mean so tat fat as the possibilities of peace and war are arc concerned it means that one of Germ germanas germanys Ger manya anys two allies upon whom hitler must depend if eilf bif expansion policies are to bear f fruit rul k has her hands so BO full of trouble now that she is unwilling and unable to tako take on any more it means that russia with her gigantic military machine and her implacable hatred of the nazis and fascists still holds holds the balance of af power la in europe and western asia it means that at least ono one of the I 1 great anti fascist powers Is pro pared to meet force with moro more force t looking elsewhere there are other signs to indicate that the designs of the fascists are far from materializing A few months ago it seemed that the fall of tho the adan spanish government was waa imminent franco with hla blei troops and ana his german planes and munitions muni tlona was advancing almost unchecked today the government has rallied has regained lost territory ancl la in again on oil the offensive in spite of incredible horrors the spirit of the population in government ter continued on last just dg economic highlights continued from page 1 citory seems seeing to have gained rather than lost in vigor franco still lins has the upper hand but the exports experts are saying that he cannot possibly win this year and that it if the recently signed pact whereby mussolini pledged himself to withdraw troops from spain la Is observed his chances of ultimate victory will be immeasurably lessened germany Is rattling the saber again at czechoslovakia Czechoslovak la but there has been notable stiffening of spines in france which leads to the view that actual german aggression gres sion of czech territory la is unlikely una and would be extremely foolhardy summing up the fascists and the nazis are still making the most moat noise but they arent showing results big qu question estloa mark remains in england where the tottery chamberlain government continues to play both ends against i the middle recent surveys indicate that england has lost a coi colossal amount of prestige in this country business news Is mostly good production figures are indicating that the sustained improvement lit in the stock market Is justified by conditions consumers goods industries continue th aue to lead the field but there are signs of betterment in the long dormant capital goods industries even the railroads which are earning 1 9 almost nothing are expected to soon increase their buying steel recently tou touched clied 40 per cent of capacity in a period when normally business would have declined automobile production la Is at a higher level than anyone thought possible a fe few months ago with still better experience in prospect |