DRIVE TO SOUTH?

LET DANZIG SIMMER.

Shifting Focus Of Interest

In Europe.

FATE OF HUNGARY

Independent Cable Service. LONDON, August 12. There is a growing belief that Herr Hitler may let Danzij simmer while he strikes in South-Eastern Europe.

The influential "New York Times," one of the papers holding this view, says: The visit of the Italian Foreign Minister, Count Ciano, to the German Foreign Minister, Herr von Ribbentrop, at Salzburg is more important than what Herr Foerster had to say at Danzig.

"While Danzig is held in sus[>ense, the focus of interest shifts southward to the relations between the Axis Powers and Hungary and Yugoslavia.

"Italy, Hungary and Yugoslavia all stand to lose by war. Therefore, they are as much interested in postponing a showtlown as the Powers forming the peace front."

May " Switch Heat " Towards Hungary.

"It is possible that Herr Hitler may 'switch the heat' towards Hungary," says the "Evening Standard." "There is some confirmation for the view that there will be no general war over Danzig. "Despite all the sound and fury, Herr Foerster's speech meant little. It is not possible to discover from it what conclusions were reached at the meeting with Herr Hitler. Probably no final decision was made.

"It is possible that the Nazi policy is not to have Poland as an enemy, but to reduce her by degrees to a neutral buffer State, between Germany and Russia. In the present state of Polish opinion that process may take a considerable time."

"Yugoslavs fear that, within a few weeks, the German propaganda drum will be beating against their country."

So says the Belgrade correspondent of the "News Chronicle."

Yugoslavia's political and military chiefs fear that the Axis will soon seek guarantees of Yugoslavia's friendly neutrality in the event of war, the correspondent says.

One aim is to ensure unhampered transit of men and armaments on the roads and railways of northern Yugoslavia, which connect Germany and Italy.

EXCITED FANTASY.

THREATS TO HUNGARY. (Received 1.30 p.m.) BUDAPEST, August 15. The Press publishes semi-official denials of threats to Hungarian independence, describing them as products of excited fantasy.