on FINAL BULLETINS Tomorrow sT ides MjHjnn ft A 11 I'm1! 11 fin i"i uijiuij( m m . . ri . I"" --uuuoQQCKKmiKHKKHriBMtOWlOOtHJM FAR EAST COUNTER-OFFENSIVE CANBEUKA-Premier John Curtln -Uralia yesterday at something in the way f at offensive aeainsl the Japanese. He sa d that he was ; .raged with -rowing reinforcements of the Allied forc V CHRISTMAS' LONDON The Royal 'Air Fdf c t Christmas Eve and Christina' night,', incendiary bombs on the east coast damage or casualties. The ",e Red u army has recaptured the Red counter-offensive contin ues. The Russians estimate that S55 r.prman nl.mes have been brousht. down In combat and by nnfl-nlirroff hatteriCS Since the assault on Moscdw commenced. Tho hiiriroxt Hnv's bae was 47 on v. "'BO'" J - October 29. t City Is Now t . Paying Back The city of Prince Rupert i making Its first repayment to ,the provincial government on nrr.mint of moneys bor- A .n.J nn nfcmint tot Unem- nlnvment relief. In session, as a city council this morning, Cltv Commissioner D. J. Matheson authorized a bylaw. making repayment of $17,- 496.22 which, was borrowed in 1932. from Germany raiders dropped causing little PETAIN BROADC - VICHY-Marshal Henri Philiippe P -m broadcast a Christmas message to the people of France. He gave no hint of the resignation as chief of state which had been rumored. FREE FRENCH TAKE OVER OTTAWA Free French forces have taken over the islands of St. Pierre and Miquelon south of Newfoundland. A plebiscite of the inhabitants was taken and went 98 percent in favor of Free French taking over, only ten voting for Vichy control. The British and United States governments aic not pleased at the move In view of possibility of disturbing relations with Vichy. MANY AIRMEN LAND AT A imiTISM PORT The biggest contingent of Empire airmen ever to cross the Atlantic arrived in Great Britain yesterday. They included Canadians, Australians and others. There were also members of other services in the convoy. NEW CREDIT RESTRICTIONS OTTAWA Further restrictions on consumer credit buying af-1 fectlng installment purchases, charge accounts, lay away plan3, financing charges and advertising were announced yesterdty by'the Wartime Prices and Trade Board, effective December 23. A new provision is that trade-in value of an article can no longer be considered as part of a down payment. Nazis in Reverse RUSSIANS MOVE ON STEADILY Red Army Continues to Slake Crushing Successes in Great Counter-offensive. MOSCOW, Dec. 27: New successes are reported by the Russians all along the Russo-German battlefront. Crawling across the river - tec by night,- in -Reds smashed a new Nazi defensive line across the Oka River and captured a large town on the western bank. Ihls Is believed to have been Heluga. In addition to overrunning Heluga, the Reds spread out widely on the Leningrad front nnrt uprp nttacklne along the whole Finnish front. Although Moscow admits nutt-ine with stlffer German resistance the Red Army continues to ad- j vance all along the line on the Russo-German front. One hundred more villages have been captured by the Russians west of Moscow and the Soviet forces are approaching Orel. There Is forty below zero weather and the snow covered fields are littered with Nazi dead and booty. Bitter fighting continues In Crimea where Scbastapol Is still holding out. A large German force near Leningrad Is now In danger of being wanned by the Russians. In the Moscow sector and elsewhere the Germans are still being thrown back by the Nazi counter-offensive. Even in the Crimea, where a set was being made on Sebas- tanni fho Mazis have suffered a setback. DISPOSE OF No SUBMARINE Further Torpedoing Off Coast of California Since WASHINGTON, Dec. 37: A United States army bomber has sunk a Japanese submarine off the California coast, it i.f announced. No further torpedo attacks on the west coast have been reported since Wednesday. A 5700-ton steamer of the Mc-Cormick Line was reported sinking Wednesday night of the California coast. The Varicouver steamer Rose-bank has arrived safely at a California port. No reason was given for her delay. vprv heavv fighting was in pro- .-. r - cress southwest 01 tne kiuwc a- capital. Althoueh Manna naa wtn uc clarecfjan open and defenceless Mtr unrfpr international law, Jap anese bombers continued to pound It and there were seven alarms onH spvmi bombings msioe oi tPntv-four hours. Military ana nival Torces iliive wes" nA ontl.sdrcraft batteries silenced or, Prpsident Quezon and United States High Commissioner Francis B. Sayre have left, tamns tne au mlnistratlve onices witu wwu As for the fighting "north and' mm VOL. XXX, NO. 301. BERLIN, Dec. 27: There was a serious disturbance here on the arrival of a hospital train with wounded from the Russian front. The German people are becoming shocked over the enormous casualties and the condition in which the wounded arrive. No longer can such matters be kept from the people. ARRIVES IN WASHINGTON Canadian Premier Reaches United States Capital to Meet Roosevelt and Churchill. WASHINGTON, Dec. 27: Prime Minister William Lyon Mackenzie King of Canada arrived In Washington yesterday afternoon and immediately went into conference with Secretary of State Cordell Hull. Later he met President Roosevelt and Prime Minister Churchill. The crime minister left Ottawa Prime Minister Winston Churchill action, Death and Terror In Manila Defenders of Island Hard Pressed 1 w-v 1 1 ft-- Stntiis of Oncn C tv Is Completely Disregarded uy Enemy Invasion Reinforcements ucing Poured Ashore. ; ii not be counted, the raiders imy-more yuk V" ,nhm,t nnnosition for two thi. Moscow front. Eisewnciei ... ""r": at A NTT. A rw. 27: (CP Japanese bombers blasted death and terror through Manila today in complete dis- i t tun, niHr'a nowlv nrnplnimpfl status as an onen . - . 1 ' 1 . - 1 1 1 . .,fiHnnP HTlfn I and undetentlea community, ruuuig many pciouuo viti direct hits on the government buildings, a church, fire station and college. In numbers so great that they could ai- half hours. sinKinu iwu uiiu -- ' - freighters In the bay area ana then turning their attention to the helDless and dlsarmea cny. Brilliant flames shot up from the famous old walled city close io Fort Santiago which had not been used for military purposes for years. Thp United states war .Depart ment reported today that fleets of JaDanesc troopships were pouring invasion reinforcements asiiuic north and southeast of Manila and south on Luzon Island a late uni ted States Army communique said yesterday that "things were go lnz well for the American ana Filipino forces on all sectors." No mention was made of fresh land ings or advances. It is admitted, however, that the defending forces jit ereaUy outnumbered and that the enemy for the time being at least have air supremacy. Manila, the capital of the Phil innine Islands, was aeciarea an open and undefended city Christ mas Day but Japan woina not re- camilze the claim and continuea hnmhlne it. The ZJnitea btaies forces are engaged in a furious as sault with tanks against the in vaders on southern Luzon Island and General Douglas McArthur Is reorganizing and strengthening his defences at Llngayen Bay. The position of the Phlllppln Islands is still serious with fierce ficrhtlnff contlnulne. There have been some successful counter attacks bv the defending forces atralnst the invaders who are be ine reinforced. Seven spearheads have been started by the Japan CLEANING Christmas day for Washington tolplete rout, take part In conferences between . fighting URLIBYA British Campaign Meeting With Swift -Success Out of Cire-naica Into Tripolitania. CAIRO, Dec. 27: ft) Axis forces are still being pursued by the British west of Bengasi with fighting now centred I around Barce. Thirteen thousand Axis prisoners have been sent td the rear. The threat to Egypt has now been removed, a Cairo communique said yesterday and British troops can now be released for mopping un purposes. ! British forces have occupied Bengasi, most important port be tween Egypt and Tripoli, thus cleaning up thtj campa'gn in Clrenalsa, the eastern section of Libya. Bengasi isi 250 miles west of Tobruk and its capture marks an advance of 300 miles wes of Egypt for the British. British forces In the Libyan campaign are now completing a swift four hundred mile drive clear across Libya to the Tripoli border with a view to knocking Italy completely out of North Africa. British forces by! last night had chased the Axis remnants to a oners have been capiurea lajgeamnuUfjdum ese wno are also continuing a fierce air assault. The military situation In the Philippine was made still more critical after one hundred Japanese transports had landed invasion forces supported by strong naval and aerial co-operation. There has been heavy bombing. Malay and East There Is little news from the fighting in the Malay Peninsula but the Dutch air and naval forces are carrying on strongly, sinking another Japanese destroyer and transport off the Borneo coast. Batavia reported today that the largest ship in a Japanese concentration was sunk by di-nct hits from Netherlands army bombers off Kuching, the capital of Sarawak, Island of Borneo, and a lighter ship also was sunk. A Netherlands comunique made this announcement today. Fif teen enemy ships, at least, have already been accounted for by the Dutch. British defenders In northern Malaya had stemmed the Japanese advance Christmas Eve and have since been giving blow for blow against the Japanese Invaders, Althoueh the Japanese drive in the Malayan jungle Is still halted three hundred miles north of Singapore, a stronger offensive by the enemy Is expected there fol lowing the loss of Hong Kong. One million Chinese around Sin gapore have promised to give full aid as auxiliary troops to the Bri tish forces. Landings were effected by the Japanese forces on Sarawak, North Borneo, on Christmas Day; The landings were made at Kuching. The Japanese are, reported to have landed at Kuching, capital of Sarawak. The United States Navy an nounced yesterday that forces of marines were still holding Mid way Island. 1200 miles cast of Wake Island. Hong Kong Capitulates After a week's valiant resistance despite a position which was ad NORTHERN AND CENTRAL BRITISH COLUMBIA'S NEWSPAPER PRINCE. RUPERT, B.C., SATURDAY, DECEMBER 27, 1941. mlttedly hopeless, Sir Mark Young, governor of Hong Kong, took steps Christmas Day to capitulate, the British Colonial Office an nounced. Military and civilian casualties had been heavy but de tails are not yet available. The besieged British garrison at Hong Kong held out valiantly for two weeks until Christmas Eve. Artillery from Ameron Hill set oil tanks in Japanese-controlled Kow-loon afire. There was a spectacu lar conflagration Wednesday night. Interior Weather Clear and Cold Passes Suddenly Victoria Man, Employed At Seal Cove Air Base, Died Yesterday Patrick Finnerty, who was em ployed by the E. J. Ryan Contracting Co. at Seal Cove, died yesterday at the Prince Rupert Gen eral Hospital after a brief illness. Deceased had been a resident of Prince Rupert for two years and came here from Victoria where a widow and family reside. The remains were forwarded last night to Victoria for burial. Mr. Finnerty was a son-in-law of F. Hamilton Harrison of Victoria, purch-aiing agent for the provincial government. High Low The residence of Lee Dell. 304 Eighth Avenue West, suffered con siderable damage from fire and water at 1:50 Christmas afternoon and for a while It was quite a spectacular blaze. Mr. Dell's water pipes had become frozen and he was usln, a blow torch to thaw them out. Oil from a defective outside tank connection had, evidently, seeped into the ground, the torch setting it afire. Fire went up through partitions and they had to be cut into by the firemen, causing further damage to the property. The furniture to a large extent was removed before it suffered damage. There was insurance. ,owest Thermometer Reading Of VlpfrtVia Rftv's 3 TlLlUIld UUJ Ten Below Zero Is Recorded At Smithcrs Weather in the Interior has been clear and cold over the Christmas holiday season, according to reports received at railway offices. Smithers reports the lowest thermometer reading with ten below zero. Patrick Finnerty Fate Unknown rrivate Harvey J. Terry Got There By Stowing Away On Troopship VICTORIA, Dec. 27: The fate of Private Harvey J. Perry of the Royal Canadian Army Medical Corps who reached Hong Kong by stowing away on a transport ship is not yet known. Perry hailed from Victoria. He had been ordered returned home from Hong Kong but whether or not he left there before the siege began Is not known. Rubber Goods In Canada Being Cut Drastic Curtailment To Be Effected After First of Year OTTAWA, Dec. 27: There will be drastic curtailment of rubber goods In Canada after January 1. Rubber footwear and bicycle tires will be cut down. New cars will be allowed four tires but no spares. Golf and tennis balls will be out. 9:51 ain. 22:39 pjn. 3:09 ajn. 16:33 p.m. Britain and United States Map 19.1 ft. 18.4 ft. 9.5 ft. 7.1 ft. PRICE: FIVE CENTS Strategy Is Being Planned GERMANS SHOCKED Disturbance In Berlin On Arrival Of Hospital Train Out Program Expected To Bring Victory Into Sight Next Year DARK BUT GLORIOUS I'rime Minister ai.J Minister Of Defence Comment On Fall Of Hong Kong OTTAWA, Dec. 27: Hong Kong .vill go down as "a sombre but ilorious page in the record of the Canadian army," declared Hon. J. L. Ralston, minister of national iefence, in commenting on the fall of the British stronghold of Jie Orient In the valiant defence jf which the Canadian forces played a prominent part. . Prime Minister William Lyon Ma:kenzie King said the stand at Hong Kong might have an lm- point ninety miles' south of Ben, war ta ,n to Far East thr0 n gasi and only eighty mile3 from the border of Tripolitania. To effect a retreat and escape com- the Axis force was a desperate rearguard of Great Britain and President Several hundred jmore Axis pris- Franklin D. Roosevelt. .Mj;.Kng,J accpmnanle.'ljjy, Hon. J. L. Ralston, minister of national defence; Hon. C. O. Power, minister of air, and Hon. Angus Macdonald, navy minister. having held up the enemy for valuable two weeks. NAZI REPRISALS DOVER, Eng., Dec. 27: After and a , British bombers raided le Havre British mopping up opsntlons German planes bombed the town south of captured Bengasi, British and killed 300 persons, said a Brlt- general headquarters at Cairj re- ish soldier just returned from ported today. occupied France. Concentrating On PhillSpines Joint Conference of Major Anti-Axis Powers to He Next Step Following Washington Meet Prime Minister Churchill Speaks. WASHINGTON, Dec. 27: (CP) Great Britain and the United States were believed today to have reached preliminary agreement on broad strategy for land, air and sea campaigns calculated to put the Allies on the high road to victory in 1943. The next step is to work out details and responsibility for execution of the strategy Churchill To Canada OTTAWA, Dec. 27: Prime Minister Winston Churchill of Great Britain will srjend two days in Ottawa early next week, punctuating his visit to Washington with the stay in Canada. Next Tuesday Mr. Churchill will address a joint session of the House of Com- mons and Senate. HAD FIRE 'XMAS DAY Home of Lee Dell on Eighth Aven ue Suffered Damage As lie-ult of Pipe Thawing. and expectation Is that this will get under way almost immediately in a joint conference attended by representatives of the major Allied powers. In working out broad allied strategy Prime Min ister Winston Churchill is understood to have proceeded on the probability that Germany would continue to threaten invasion of Great Britain in order to keep the island from dispatching men or material to other theatres. The end of 1942, I Udnk I can quiet definitely say, will see us In a much better position than we are now and 1943 will enable us to assume the initiative upon an ample scale." So stated Prime Minister Winston Churchill In snealcl n a vpsip rri iv.a t . Wn sh I no t ni . D.C., before a cheering Joint session of the United State Senate and Hoiise of Representatives. There might be reverses and disappointments which would cause temporary depression but H was better to know the truth sombre as it might be. The task which faced the Allies was not beyond their strength and endurance. Mr. Churchill told o! mighty strokes that had already been delivered against the enemy the rout of the Germans in Russia, the crumbling of the Axis forces In Libya. For the first time in the Battle of Libya the British, equipped with British and Amer ican aircraft and tanks, had met the enemy on even terms and made them feel the sharp edge of tools with which they had enslaved others. The aim was to completely destroy Axis forces In North Africa and there was good reason to believe, this would be donei "With proper weapons and with proper organization, we have been able to show that we can beat the life out of the savage Nazis. What Hitler has got In Libya is only a sample of what we shall have to give him In every quarter of the globe to which the war may spread." The life line was steadily growing in the Atlantic in spite of all the enemy could do, Mr. Churchill said. The British Empire was now Incomparably stronger and was growing stronger every month. The best tidings of all, however, was that the two great English-speaking nations were now united as never before In drawing the sword for freedom which, he predicted, would lead the subjugated people of Europe to lift up their heads in hope instead of resigning themselves to the conqueror's will. As for the war in the Far East, Mr. Churchill predicted the ulti mate" Invasion of Japan and the inflicting of a defeat on that na tion such as the world would never forget. Prime Minister Churchill's speech before United States congress Friday was broadcast. Such an address was not without precedent. The late Prime Minister Ramsay MacDonald, during a visit to the United States, aldressed congress,