CRISIS AVERTED.

Auckland Star, Volume LXIX, Issue 67, 21 March 1938, Page 7

CRISIS AVERTED.

Lithuania Accepts Terms of Poland. PUBLIC PANIC SUBSIDES. (Received 1 p.m.) LONDON, March 20. The Lithuanian Minister ef Foreign Affairs, M. Lozoralitis, visited the Polish Legation at Tallinn, the capital of Esthonia, and, it is understood, communicated Lithuania's acceptance of the Polish terms for settlement of the dispute between the latter two countries. It had earlier been stated officially from Warsaw that Lithuania must accept the Polish ultimatum in full; a conditional reply would be regarded as a rejection and "appropriate action" would follow. In view of the international situation, says a message from Kovno, the capital of Lithuania, the Government felt compelled to accept the Polish proposals, the Lithuanian deputy-Prime Minister told Parliament. The Minister of Communications. M. Stanisauskas, thanked the Great Povers for their representations, which unfortunately had been unsuccessful.

Long queues formed up at the Kovno hanks to withdraw deposits under,fear of a crisis approaching, but when it became known that Lithuania had agreed to the Polish terms, general rejoicing replaced the previous gloom. The President of Lithuania, M. Smetona. summoned representatives of the Army, the Diet and political parties to discuss the position. There is immense satisfaction in Warsaw that the crisis has been averted. An exchange of Notes provides for the immediate appointment of the respective Ministers in the two capitals. President Mosoicki, in a broadcast from Warsaw, deplored disorder by young people and hinted at a totalitarian regime unless the danger ceased. BITTER FEELINGS. CAPITULATION REACTION. (Received 1.30 p.m.) LONDON, March 20. The Government's unconditional capitulation has left much bitterness in Lithuania, where it is felt surrender I was to a Polish threat of invasion, with fears of a German coup in Memel in the background. Anti-Polish sentiment has intensified and is expected to find expression in the resignation of three or four members of the Lithuanian Cabinet, including M. Lozoraitie, Foreign Minister. The Cabinet already is divided on the surrender. A Foreign Office spokesman said that friendly foreign Powers advised acceptance of the Polish ultimatum. Poland is withdrawing troops from the border. It is understood the Government retains its attitude towards Vilna. The Polish Foreign Minister, Colonel Jozef Beck, in a statement to the Press in Warsaw, said he hoped Lithuania's acceptance would favourably affect the whole European situation as diplomatic relations would help to solve all the Polish-Lithuanian problems. Celebrations of the settlement of the dispute are going on all over Poland, coupled with anti-Jewish outbursts, as the. Jews are accused of withdrawing funds from the Government banks owing to the fear of war. Many Jews I were assaulted in the streets, and 200 were injured. Eighty per cent of the I Jewish shops in Warsaw were broken ' ' into and ransacked, and goods ware destroyed, 'chiefly by students whom mounted and foot police continually dispersed. '