GERMAN PLANS

INTERNAL MOVEMENT UNION WITH THE REICH LEAVE POLAND INITIATIVE (Received July '2, 7.7 p.m.) British Wireless LONDON, July 1 Danzig is the main subject in the morning's newspapers. Press reports describe the Nazis' activity in the Free City and the prevalence of rumours of an early crisis, which, it is suggested, would be brought about by an ostensibly spontaneous movement of union with the .Reich. Ihe calculation is understood to be that such a development would necessitate action by Poland which, in Nazi propaganda, would be given the appearance of being provocative or aggressive in character, with the double object or persuading the German people that the trouble bad been originated by the Poles and of creating, it is hoped by the Nazis, confusion in the public mind in the States comprising the anti-aggression front and particularly in Britain. British press comment shows that a movement of this kind, if it were intended, is defensive in advance. There is unanimous recognition that any attempt to change the status of Danzig, except by consultation and agreement with the appropriate authorities, would be a breach of treaties, and would immediately raise the question of the British and French guarantees to Poland. It is stated, moreover, that the position of Britain and France was made very clear last week by the speeches of Viscount Halifax and M. Daladier. it is confidently assumed in the press that Lord Halifax's warning will be willingly reinforced by the Prime Minister, Mr. Chamberlain, in his broadcast on national service tomorrow evening.

BRITISH POSITION FINAL

MR. CHAMBERLAIN'S PLEDGE DECISION FOR POLAND (Received July 2, S.IO p.m.) British Wireless LONDON, July 1 "While alarmist speculations regarding Danzig arc discounted and deprecated in London, official quarters have made it clear that tho situation is being closely and continuously watched in consultation with tho French Government. Neither in Paris nor in London, however, do the events which aro known to have occurred nor developments which are forecast with or without foundation in reports from abroad, call for any new decision. So far as the British Government is concerned its attitude was defined clearly and definitely in ]\l r. Chamberlain's declaration on March 31 that "in the event ot' any action which clearly threatened Polish independence and which the Polish Government accordingly considered it vital to resist with its national forces, His Majesty's Government would feel itself bound at once to lend the Polish Government all support in its power."

NOT ITALY'S CONCERN UNEASINESS AMONG PEOPLE "DRAGGED INTO CATASTROPHE" (■Received July 2, 7.10 p.m.) HOME, July 1 Although the Italian press takes the dutiful Axis line, thero is manifest uneasiness among the people, as it is feared Italy will be dragged into a catastrophe by tho German war chariot on an issue which really is not Italy's concern. Signor Mussolini's press mouthpiece, Signor Gayda, says Lord Halifax's speech delivered a death blow to hopes for a peacefully negotiated solution of vital European problems. Ho bitterly assails British and French encirclement, which, lie says, Germany and Italy are ready to face with calm and firm resolution. FOREIGN LABOUR FARMS IN GERMANY Jif BERLIN, Juno 30 The Labour Ministry announces that German farms are at present employing .'57,000 Italians, 15,000 Yugoslavs, ]2,000 Hungarians, 5000 Bulgarians, 4000 Dutch, 'IO,OOO Slovaks, also largo numbers of Czechs. Tho retail produce trade will be reduced one-third in order to release a fresh labour reserve of 3,500,000. Women and children so far have not been tapped.