DENY REPORTS

DANZIG SETTLEMENT POLES' REJOINDER " PROPAGANDA MOVE " RUMOUR OF AGREEMENT REJECTION IN BERLIN By 'Telegraph—Press Association—Copyright (Received July IS, 11.50 p.m.) LONDON, July IS Statements that negotiations have been begun for a settlement of the Danzig quesion are described in Warsaw as a move by German official propagandists aimed at dividing Britain and Pland. It i 3 pointed out that Poland will not negotiate on any terms until Herr Hitler withdraws Ills' demand for the inclusion of Danzig in the Reich. An earlier message said the Nazi leader, Herr Forster, had returned to Danzig from Berlin. It was underjstood he indicated that ho had found Herr Hitler optimistic that tho Danzig problem could bo settled by negotiations between Germany and Poland, provided there was no outside interference.. The Independent Cable Service says reports of a settlement are most frequent in Pome, where well-informed quarters believe an agreement between Poland and Germany was reached in principle when Herr Hitler met, Herr Forster."

It is understood tlio Pope and Signor Mussolini'arc actively engaged in nogotiations, and tlie Vatican is reported to favour the view that the status quo of the Free City should remain unaltered until 19-14, when it is hoped the present tension will have ended. It is also ..stated that Signor Dino Alfieri, Italian Propaganda Minister, went to Munich hearing Signor Mussolini's views regarding a Danzig settlement.

."Reports from Berlin, however, say a settlement is officially denied. >, Other Rome sources claim that the Italian people aje reluctant to fight for Danzig, Italians not sympathising with the German expansionist aims. AntiGerman feeling is especially evident in Trieste, where Italian trade has been severely hit by the German occupation of Austria. Herr Hitler plans a new railway station to be called Mussolini Station, for the arrival of State guests. The adjacent street will be named Mussolini Street. Adolf Hitler Square is being renamed Mussolini Square.

RELUCTANT TO FIGHT MUSSOLINI'S ATTITUDE PRESS' SUPPORT OF NAZIS "ITALY READY TO MARCH" LONDON, July 13 Signor .Mussolini's reluctance to bo drawn into a devastating war at the heels of the senior Axis partner remains an indisputable factor in the European situation —a reluctance which Signor Mussolini's silence only confirms. There are, however, signs that the more extreme Italian newspapers consider it an appropriate moment to emphasise Italy's readiness to support Herr Hitler's claim to Danzig. The Relazioni Internazionali, which represents the more extreme, but nevertheless important section of ' Italian political thought, says: "Since Danzig's return to the Reich is irrevocably decided upon, we are ready to. march with Germany in the event of an armed clash on this issue. Italy has repeatedly counselled Poland to surrender Danzig, because an intransigent attitude would bo fatal for Poland. It is useless for Britain and France to persist ih their aim of maintaining Danzig as' a thorn in Germany's side, wounding her national pride and delaying her definite unity. Britain and France seek to throw tho responsibility for war on Poland." Tho Italian press gives prominence to German pleasure at receiving this socalled 'assurance of Italy's enthusiastic co-operation.

GERMANS IN ITALY . /' OFFICIALS FILTERING IN NAZIS SEEK DOMINATION LONDON, July 1.3 German officials are penetrating Italy's State departments, and Secret Police and German foremen are being drafted into Italian factories. "Germany is unquestionably seeking complete,domination of Italy," says the diplomatic correspondent of the Daily Telegraph, "although botli Italy and Germany, conveniently describe developments in this connection as 'close and trustful partnership.' "The most significant recent development is that Germany is acquiring an outlet at Trieste, and so bringing to pass what has been Italy's traditional nightmare. "Some competent observers believe that Germany ultimately aims at complete control of North Italy, and 18 prompting Signor Mussolini to remove the German population from the k°uth Tyrol, in order to eliminate a Potential ''Sudetenland.' "Italy has indisputably devoted the bulk of her recent votes for fortifications to strengthening the German frontier, and has stationed her largest forces in the north-east."

MAY ISE curtailed

EVENT OF EMERGENCY COMMONS SUMMER RECESS _ (Ttcccivcd July 18, 0.5 p.m.) British Wireless LONDON. July 17 In the course of the 15 Parlinnienary (lays remaining before the summer * c coss of the House of Commons, the ,eminent intends to dispose of all its emergency legislation. In view of the crowded state of the programme, it is J°gnrded ns certain that, quite apart , roin . possibility of urgency aris*nS> the summer recess will be curtailed.