Evening star., 1938-01-16
SOVIET T0EXPAND
WARSH|P BUILDING
Preparations for War in
East and West Cited to
Parliament.
b the Associated Press.

Soviet, Russia's new Parliament, to-
day cheered announcement Of q
broadened naval program and empow-
cred its presidium, permanent presid-
ing committee, to proclaim martial
law or q state OF war in national
emergencies.
simultaneously Russia suspended all
commercial payments to italy in what
diplomatic circles described as q dis
agreement over delivery Of Soviet oil
to the italian Navy.
The war emergency measure and
four other amendments to the Soviet
Unions new constitution were adopted
by an unanimous show of hands at a
joint session Of the two-house Parlia-
ment after Stanislas Kossior, a men,
Der OF the Political Bureau of the
Communist party, warned:
war Is being prepared against us
IN the West and East
Bigger Wsrships Planned.
viascheslaff NJ Moloton, Soviet Pre-
mier. announced Russia planned to
build bigger warships In a hastened
naval program.
A noisy ovation greeted the an
nouncement. Molotoff made the dis
closure in explanation of the recent
establishment of commissariat of
naval affairs separate from the de-
tense commissariat.
THAT our fleets are being intensely
reinforced with smaller units now Is
true enough, but when we finish some
factories we are building " we will
reinforce our fleets at a faster pace
and with bigger units" Molotoff said.
The tremendous naval construc-
ton" Of capitalist countries. he de-
clared. was reminder that "our
country Is large, its shores are washed
by many seas and We must have a
strong, powerful feet"
Japan's Attitude Considered.
The Premier explained Japan's re-
fusal to sign any agreement on naval
arms limitation had been taken into
consideration along with what he
termed Italy's claims to mastery of
the Mediterranean" after similar re-
fusal to agree on limitations.
They say Germany has signed an
agreement" Molotoff went on. but
we must see what this signature is
worth. A strong Soviet power must
have navy on the seas and oceans
corresponding to her might and inter-
ests.
Molotoff disclosed the 1898 Soviet
budget would be larger than the 1887
outlay of 10l .000, 100000 rubles (about
$4,000, 100000.
Debt Default Charged.
In suspending payments to Italy
the government charged that the Ital-
ian Navy had failed to meet fuel bills
owed the Soviet, that Russian ships
were being detained in Italian ports
and Italian firms had suspended pay
ments to Russia.
Diplomatic circles said the Italian
naval ministry had declined to pay for
oil supplied by Russia on the ground
deliveries had been less than prom
1sed under contract between the
two governments.
utaly. allied with Germany and
Japan in an anti-Communist pact.
oficially denied defaulting in any
way on payments due Russia and
asserted news of Russia's action
came as complete surprise"
tRuSsian sources in Rome said a
note had been handed to the Italian
government some time ago by the
Russian Embassy protesting Italy's
non-payments. When no answer
was received, they said, Moscow
decided to cancel payments due
Italy)
Trade Bills Held Up.
Inc Soviet Union also instructed
Its trade delegation to Italy and other
trading organizations to hold up paw
nents to Italian firms, including bills
due third persons.
Pravda, Official Communist party
newspaper, declared the Italian Navy
ministry refused to pay for fuel and
OIL delivered to it in September.
Italian quarters in Moscow said
Russia had been supplying less oil
than contracted for since last June.
The amount Of money in dispute
could not be learned. The sums will
be deposited for the time being in a
special account of the State Bank
OF Russia.
Cruiser Not Involved.
Diplomatic quarters declared a
cruiser Just completed at Italy's IA
NOUS Ansaldo Shipyard for Russia
was not involved in the controversy.
Only one Soviet ship has been de-
tained In an Italian port, Italian
sources IN Moscow reported. They
said 1t was a freighter which had
been seized at Naples by owners of
an Italian ship damaged in a collision
With It to satisfy their claims