The Waterbury Democrat., 1939-11-15
FURIOUS WAR AT
 SEA IMMINENT
scontinued iron. rage p

t4AlO ~ WNS kCekAkSQ VAAuv VAAS AAAAAAAS try of economic warfare was watch ing German exports closely now, fully realizing that these shipments provided Germany with much need- ed foreign exchange.
 There were indications that the British were not satisfied with the effect the blockade and contraband control wes having on Germany there were too many loopholes through which Germany was getting food, minerals, timber and war na- terials from Scandinavia, Russia Italy and the Balkans. Furthermore, the loss vf seven merchant ships in three days, in addition to an ull- named destroyer and the trawler Cresswell, was not conducive to optimism.
 Ernest Shinwell, Laborite member of commons, accused Winston Churchill, first lord ot the admralty of exaggerated optimism in hls Sun- day nAgnt announcement that brlt- an had 4,0OU mercnant shlpS in ser- vice and 2,b0O constantly at sea. Shlnweil sad that alter subtracolng the tonnage of auxinarles now form lng part of the navy and troop and hospital snips, there were less than 8,Uvu,UUU tons ot ettectlve mercnanJ snippAng.
 Churchill Accused
 He added: "Cnurcnlll'S broadcast seemed Co encourage the enemy to aJtacK our shores. An attack on our easCern ports ana harDorS would be a very serious matter, indeed. They are extremely vulneraple." he urged the government to take immediate steps to repiace obsole.e snlps and those destroyed by enemy action.
 T am not satisded nor are ship pers satisfied with the operation of convoy systems where there are con- siderable delays, overlapping and waste, and there is some doubt whether all our vessels or even Q large part of them are being erfec- lively conveyed"
 The outburst in the German press against the arming of British and French merchant vessels, and the suggestions by some papers that all such ships be sunk without warning, was believed a prelude to an inten- sif1ed submarine drive.
 Will Sink Such Merchant Ships
 (At Berlin, spokesmen of the Ger man foreign office and navy said armed merchant ships fould be sunk if they made any move to resist German submarines, and that such things as pretending not to hear a submarines radio signals, uncover ing guns or attempting to escape, would be chased as resistance. These sources would not confirm, however, that armed merchantmen would be sunk without warning. A navy spokesman, however, advised neutral nationals not to sail on arm- ed ships. He said also that a sub- r"arine couldn't be expected to move close to an armed ship, under threat of being fired upon, and that cir- cumstances would decide when the U-boat fould open flre).
 Previously, there had been indi- cations that Britain soon would start seizing the ships of neutrals which persisted in carrying contra band. Today, Viscount Finley chair man of tfe contraband control com- mittee, said a new form of guaran- tee had Teen worked out to speed up contraband control releases. It provides that ships will be cleared with their total cargoes, subject to agreement that they retain that part of the cargo which the British suspect as contraband until final decision has been reached.
 Black Diamond Guarantee
 This is known as the "black dia- mond" guarantee because the Am- ericai Black Diamond Shipping company was the first to agree to this method. Items which the Brit ish regard as contraband are based on the list issued by the United States in 1917, subject to adjust ment under present day circum- stances"
 Finlay said 1t was not planned now to seize German exports car- ried in neutral vessels but that a later decision would be influenced considerably by the extent of Ger man sinkings of neutral vessels"
 It was said that in event Britain undertakes to seize German exports details of the method would be out lined by an order in council. In 1915, the first order in council mere iy held that enemy exports were liable to seizure. Later neutral car- riers were made liable to seizure il they sought to evade patrols. The legality of export seizures is not so firmly root d in international law as blockade and contraband control.
 British Sea Losses
 The British sea losses so far re- ported this week were:
 The 7,745-ton Sardhana, which struck 8 mine of Singapore; nine persons missing.
 The 8,003-ton Matra, sunk in the North Sea Monday night after an explosion, three killed; 9 injured.
 The 1,356-ton Ponzano, torpedoed besween England and Spain.
 An unidentified freighter sunk of the southeast coast after an explo- sion; the location was about @ mile from where the British destroyer struck a mine.
 The steamer Dryburgh, i,289 tons, and two others, unidentified, which struck the same submerged wreck oil the east coast.
 In addition to these were the destroyer, sixth British warship lost during the war, with a toll of one dead, five missing and IS injured; and the trawler Cresswell, shelled and sunk by a U-boat of the north coast of Scotland, with loss of six men.
 Another Victim
 Another victim of the war was the Norwegian tanker Arne Kjode, torpedoed by a U-boat near the North British coast, with possible loss of IT men.
 The Germans have lost two mer- chant ships this week, the 7,892-ton n 4 A&t.n q nQQ- fay4 pa- =