TENSION CAUSED.

Auckland Star, Issue 154, 2 July 1934, Page 7

TENSION CAUSED.

NEW BALKAN AFFAIR. Italian Warships' Visit to Albania. DEBT PAYMENT QUESTION. (United P.A.—Electric Telegraph—Copyright) (Received 11.30 a.m.) LONDON, July 1. The "Manchester Guardian" Geneva correspondent says that despite Albanian protests, five Italian warships are remaining in the harbour of Durazzo, the capital city. Simultaneously with the visit, Italy proposed a resumption of negotiations concerning Albanian debt payments, which were suspended in 1932. Albania has rejected the proposed parleys until the warships depart. The situation worries the League secretariat, which has consulted several European Governments. The Albanian Government officially denies consenting to the visit by the warships, adding that it was prepared to defend the country's independence against any threat. MORE DRASTIC CUTS. BALANCE ITALIAN BUDGET. (Received 11.30 a.m.) ' ROME, July 1. Cabinet has approved of "cuts" of a total amount of £6,000,000 for the financial year of 1934-35, with a view to meeting the Budget deficit of £30,000,000. The decision follows the success of a conversion loan last January and a reduction in State salaries last April for the same purpose.