Success in North Africa and submarine activities off American coast have come at right moment to counteract influence of reverses in Russia.

Cold very severe, even in Berlin, since the beginning of January. Are now undergoing succession of hardships. General opinion is that the Russians, even though they are straining their strength to the utmost, have accomplished nothing decisive and have suffered heavily. Their desperate effort to delay resumption of German offensive in the Spring will fail.

Large numbers being called for military service, and it is expected still more women will be conscripted for industries.

While it is felt that all South American States will eventually break off diplomatic relations, United States are regarded as having had partial set-back.