The Waterbury Democrat., 1945-07-28
By RALPH HEINZEN

The PotSdam Three-Power ultl- matum-"Surrender or be de- stroyed''-was the United Nations prompt reply to Tokyo's radio ap- peals to America for more lenient peace.
 There can be no doubt anywhere in Nippon today that Japan can have peace but only at the price of uncondition surrender. Hopes of saving Japan from military occu- patton or of keeping even 8 corner of the stolen empire, have been blasted by the stern terms of the Potsdam ultimatum.
 FOresee Russia's Entry
 Although Generalissimo Stalin's name was not signed, it was pulp lished from Potsdam in Stalin's presence and even the Japanese must be able to read much between the lines of that proclamation. There can remain no hope of a break between Russia and America end Britain, or of fundamental dif- ferences between China, America and Britain over the peace to be irn- posed upon Japan after victory.
 At this crucial turning point in the Pacific war, Japan's military in- feriority is evident and her political position is no less vulnerable. Prime Minister Attlee's first statement re- iterated that Britain is in the war until Japan gives up or is whipped.
 Admiral William F. Halsey's att tacks on the remnants of the im- perial fleet at Kobe leave Japan without a fighting navy, hence cut of from her overseas sources of oil, rice and iron. There are few war ships left for suicidal attacks, but there is no longer enough naval strength to fairly challenge the Third Fleet.
 The Japanese airforce "shot the works" at Okinawa and lost. In that 86-day campaign, Japan lost 4-072 planes and qualified American observers estimate her total air strength now at from 5000 to 10000 planes. Against her we have 7,5oO bombers poised to strike and innu- merable fighters to support them. Imitation Threat
 Japan's wartime economic order is being destroyed by imitation by admission of her own finance min- ister, Toyosaku Hirose, who an- nounced steady drain of capital by an increase of issued notes amounting to one billion yen month.
 Japan has been at war now for nine years and her losses in man. power have been nearly 5000, 900. The last official estimates, some months behind the bleeding of Oki- nawa set Japan's war losses at E. 100000.
 The longer the war goes on, the weaker Japan's potential becomes She is estimated to produce only 1000 planes month now as con- sequence of our destructive raids. Her losses have averaged 1,600 planes a month for the past six months. Japan's steel production has fallen to less than 12 million tons a year; our own production ex- elusive of the British, is seven times greater. Cut-O From Supplies
 Japan virtually is cut of com- pletely from her rich conquests in the south because she has lost T. 000, 900 tons of vital shipping. She can build less than 100000 tons annually for replacement. We have built 10000 tons of merchant shipping in one year.
 At the conclusion of the present re-deployment of American forces, four million of our seven million land troops will be in the Pacific. Japan will continue to outnumber us with an active army of 5,000,000 and as many trained reserves or civilians - whose complete arma- ment is doubtful. But 500,000 Japs have been by-passed on Pacific Is- lands, and another 500,000 have ben cut of from all home sources of armaments and supplies by the naval and air blockade and the