The Waterbury Democrat., 1939-08-28

 sage to Britain or of Britain's reply. But in authoritative sources it was understood that the Fuenrer had taken, in vague language, the same position that he announced in his published letter to French Premier Edouard Daladier. That was that Germany must have back Danzig and the Polish corridor. In addition, he sought to eliminate the British French announced intention of sup- porting the Poles in war, possibly by signing a non-aggression treaty with Britain.
 In reply, the British left no ques- tion that they would not renounce their pledges to Poland but they emphasized that war was not in- evitable. ..-...
 A solution of the Polish-G German quarrel by direct negotiation was urged, it was understood, and in ad- dition Britain expressed willingness to mediate the conflict if requested to do so. No Truce Asked Although suggestions for 8 truce in the present war of nerves had been urged by some cabinet mem- bers, it was believed that the pro- posal was omitted from the final draft of the message.
 The message was said to deal in detail with Hitler's Suggestions" re- garding Poland and regarding re- lations with Britain, which the Fuehrer offered to discuss in conference after the Danzig and Pol ish corridor areas have been re- turned to the Reich.
 The questions which would be dis cussed with Britain were understood to include questions, reduction of armaments and improvement of trade.
 Henderson was expected to see Hitler at the Reich Chancellery a. bout 10 p. m. A p. m. EDT) to de- liver the British reply, which Prime Minister Neville Chamberlain and Foreign Secretary Viscount Halifax will reveal to Parliament tomorrow, together with the communication from Hitler sent last Friday.
 Press War Plans
 While Henderson flew to Berlin, the government pressed steadily a. head with military preparations. The admiralty temporarily closed the Mediterranean and the Baltic to British shipping after reports had been received that German submar- ines had entered the Mediterranean.
 Drastic emergency regulations were issued by the government under the new defense bill giving the King in council dictatorial powers. The pound slumped to new recent low and regulations to control exchange dealings were issued.
 Parliament will hear a statement by Prime Minister Neville Chamber lain and short speeches by the oppo- sition leaders in support of the gov ernment.
 Opposition approval indicates that the government has decided against any retreat from Hitler and is de- termined to give Poland full support. The opposition has been consistent- ly clamorous against "appease- ment.)
 As the cabinet met, the admiralty, under its new emergency powers, closed the Mediterranean and Bal tic Seas to British shipping.
 The admiralty's order followed re- ports that a large number Of Ger man submarines had entered the Mediterranean. It means empire traffic to the east will be diverted by way of the Cape of Good Hope.
 All Ships Warned
 All British ships were warned not to enter the Mediterranean, which is the vital "all red route" to the Far East, by either the Suez Canal or Gibraltar. All ships now in the Baltic were ordered to leave at once.
 The order came as the cabinet as- sembled to approve and send to Adolf Hitler a communication or al- most incalculable importance m the Polish German dispute.
 A series of sweeping government decrees under the new emergency defense bill forbad any British ships te leave any port without admiralty authority. authorized the board Of trade to direct any British ship to any port to load goods or people. au- thorized the censorship of foreign mail and the searching Of people en. tering or leaving the kingdom.
 The pound sterling slumped $40 to e4.i2.
 The stock exchange suspended dealings In United states ard other foreign currency bonds pending reg- istratlon of British holdings with the Bank Of England.
 MebllIse nilllens
 This meaiib mobilization Of bliIions O. dollars Co foreign assets Tor the purchase Of war supplles.
 Reports from nil e0tircob were nhAt