BERLIN UNEASY

Ashburton Guardian, Volume 56, Issue 130, 14 March 1936, Page 5

BERLIN UNEASY

SEVERE FINANCIAL STRAIN. UNPOPULAR TAXES PROBABLE. HITLER FLOUTS HIS ADVISERS. COUP TO APPEASE PUBLIC. (United Press Association—Copyright.) (Received This Day, 10.15 a.m.) LONDON, March 13. The diplomatic correspondent of tho “Manchester Guardian” says there is more uneasiness in Berlin’ than has been allowed to leak out. Every symptom of discontent is hushed up. Berlin is covered with posters ordering “all responsible to spy out those seeking to sabotage German unity and to report them to the local Nazi headquarters. There lias been a run on the savings banks, resulting in restrictions being imposed preventing anyone withdrawing more than fifty marks. The “Morning Post’s” Berlin correspondent declares that if the full truth of Germany’s financial and economic situation were generally known it would lead to a panic throughout the country. It is understood that the new Budget will not only provide for further increases in taxation to finance the prodigious expenditure on armaments, but it is expected that Government servants will be obliged to contribute portion of their salaries and capitalists to surrender two per cent of their capital to the War Ministry. The cost of living has increased so sharply that these and similar measures are likely to be most unpopular. Therefore Herr Hitler sent the troops to the Rhineland to persuade taxpayers that they w'ere getting something for their money. Financial authorities describe the situation as not immediately but potentially desperate. Dr. Schacht (Minister of Economy) claims that there should be more control of the gigantic expenditure on armaments, biit this is vigorously^opposed by the general staff and Rrupps. Dr. Schacht is reported to have told Herr Hitler in the plainest language that he must consider a capital levy of four per cent, an excess profit tax oi cSU per cent and a cut of five, per cent m wages to avert bankruptcy. It is no secret that Herr Hitler is incensed with Dr. Schacht and decided upon action in connection with the' Rhineland not only in the teeth of the latter’s advice but also against the counsels of the German geneia staff and Foreign Office officials, who do not favour a return to the League.

‘‘GERMANY HAS DONE SHARED BERLIN PRESS POINT OF VIEW, EXPECTS OTHERS TO DO PART. BERLIN, March 13. “Germany' has done her share foi the pacification of Europe. She now expects others to do theirs. 1« 1S epitomises the comment in the Berlin morning newspapers m which the German official statement is given prominence—especially the govern ment’s determination, rathei to choose honourable isolation than to continue to live as a nation discriminated against in the community of “Berliner Tageblatt ’ says :- “The Government’s statement is the last appeal to the conscience of toe politicians assembled in London. 1 adds: “Germany has shown that she is ready to make sacrifices for the ideals of European co-operation, and in this serious hour she assures the world that she will honestly observe honest agreements.” , . The “Kreutz Zeitung” strongly appeals to Britain, saying that it is hardly imaginable that the British people could support the French—especially after Mr Eden’s statement in the House of Commons that theie was no reason for an assumption that the German action contained a hostile threat. The London correspondent of the “Boersen Zeitung” says that Britain must now decide whether she favours a system of European policy which is for keeping Germany down, or a system of independent European States with equal rights. General Goering, in a speech at Koenigsberg, said: “Come what may, Germans will stand together like one man to the last breath. M e have offered the world peace—but peace must come from both sides.”

SOVIET MARKS DISAPPROVAL. NO NEGOTIATIONS FOR CREDITS. LONDON, March 12. The diplomatic correspondent of the “Daily Telegraph” says that the Soviet has marked its disapproval of Herr Hitler’s policy by cutting off negotiations with Germany for 500,000,000 marks in credits for Russian purchases of German goods during the next 10 years. THE MARKETS UNSETTLED. LONDON, March 12. The markets are further unsettled as a result of the international crisis, and everything has been marked down. Continental uneasiness resulted in a continuance of the ight of capital to London, affecting the exchanges and necessitating intervention by the authorities.