POLAND'S STAND.

"BATTLE OF NERVES." Will Britain Press Warsaw To Make Settlement. EXPECTATION IN BERLIN. United Press Association.—Copyright. (Received 11 a.m.) LONDON, July 21. I'mm liorlin, 'I okyo and Rome comes nous of relaxation of tension, hut any optimism is not shared in ai'saw, where the German statement is described as a combination of wishful thinking and persistent propaganda. The 1 imcs"' Berlin correspondent declares that the German statement may be the opening of another round in the "battle of nerves." 1 he British attitude to the suggestion that London should exert influence to mako Poland amenable will be studied attentively. Iho American Press Association's Berlin representative points out that the German spokesman clearly expected i Britain to bring pressure to bear on Poland to settle Danzig peacefully. He declared that rather than plunge Europe into war some Power—Britain being meant —should brutally call Polish chauvinists to order. No British or French statesman denied that Danzig was German. Britain is a realist country and knows that as long as Danzig is not part of the Reich it will be a source of constant friction. Compensate Poland. The spokesman asked if it was not reasonable to rejoin Danzig to Germany and compensate Poland by favourable neighbourly relations. Defence measures were being pushed on, but the Nazis deny that Germany sent troops to Bratislava. The Slovak Parliament voted to transform the country into an authoritarian republic, with a National Council of ten and 80 . Deputies. , The Warsaw spokesman declared that " despite the declarations of Viscount Halifax and Mr. Chamberlain, Germany \ would not admit openly, what she knew privately, that Western Powers were « solidly behind a united Poland. If 1 common sense was to prevail it must beciii at Berlin. I If Moscow Parleys Break Down.

German circles iu Dan/.ig reiterate their desire for a peaceful but uncompromising solution. It is declared that if the Russian negotiations break down, as is very likely, Britain will advise Poland, in her own interests, to make concessions.

The British United Press Paris correspondent stated that France has advised Britain to accept the Soviet conditions. If. Daladier fears that failure of the negotiations would have too grave consequences.

"The Times'* Istanbul correspondent says delay in the Russian negotiations is alarming Turkey. If they break down TuiK\y will seek to conclude her own agreement with Russia about the defence of the Dardanelles.

"The Times" says the German 'spokesman's statement is considered too naive to be taken seriously; Berlin is surprised that the London Press gave prominence to the statement, as it did not mean that German policy had altered. The Quai d'Orsay spokesman said the statement would be regarded as being more trustworthy if German' military activity ceased. Feeling in Italy. A Rome message states that the British Ambassador, Sir Percy Lorraine, called on Count Ciano and exchanged views. Senor Gayda, Press mouthpiece for II Duce, in an article, is most conciliatory. He cited the inauguration of the extensive land settlement scheme in Sicily as proof that Italy's intentions are peaceful. He added: "It is not when a nation is constructing great works for civilisation that it engaged in plots against peace. Italy does not think of taking any initiative to overthrow peacc in Europe, but Italy's right to be granted breathing space in the world is proved by the tremendous effort she is making at home."