WITH THE AXIS.

RUSSIA'S RELATIONS.

Improvements With Italy

Admitted.

TRADE TALKS WITH GERMANY

United Press Association.—Copyright.

(Receired 1 p.m.)

MOSCOW, May 31. Though he described the ItaloOerman military pact as of- a funda\re? f X a^ressiv e nature, M. Molotoff mentioned the Soviet's improved relations with Italy. The Soviet had not refused to'improve trade relations with Germany. Negotiations, which had been recently carried on, were at present interrupted, but there were signs that they ma y be resumed. '

He referred to the improvement of relations with Poland, and admitted the Soviet help to China. • Warning to Japanese. He described Japanese threats against Outer Mongolia as funny and nonsensical. It was time for Japan to cease all provocations. The Soviet would defend her Outer Mongolian borders. Reactionary Japanese should know that they cannot intimidate us with threats " he remarked. The Deputies passed a resolution unanimously approving .he foreign policy.

POLISH NOTE.

Danzig Senate Must Bear Full

Responsibility.

CUSTOM HOUSE INCIDENT,

(Received 2 p.m.)

LONDON, May 31

"The Times" Warsaw correspondent says a Polish Note to the Senate reemphasised that Danzig authorities must bear full responsibility for the Kalthof incident, and denied that the Polish official connected with it violated regulations. It adds that if the Senate is willing to ease the tension, the Polish Commissioner is ready to negotiate to devise means of improving relations.

According to an earlier message Poland rejected Danzig's demand for the withdrawal of the Polish officials involved in the shooting of Herr Gruebner at Kalthof on May 21, says the Danzig correspondent of "The Times."

The incident referred to is that in which a German crowd set fire to and destroyed a Polish Customs house and later a Danzig citizen was fatally shot.