NINE-POWER BLOC

Auckland Star, Volume LXIX, Issue 138, 14 June 1938, Page 7

NINE-POWER BLOC

Plans for Vast Italo-German i Economic League. INCLUSION or JAPAN. | LONDON, June 8. Plans for a vast economic league, a nine-Power bloc, headed by Italy and Germany, are under consideration, says the Berlin correspondent of the "Manchester Guardian." The idea is to build up a system which would bring Spain and the central and south-eastern European States into a half-closed unit eventually joining up with the Japanese Empire. The object is to place the rawmaterial countries in tlie same position towards Germany as the Dominions towards Britain. The associated States would be economically united by preferences and financially united by exchange control. It is asserted that Italy and Germany can create economic conditions similar to those of Britain and France with their Empires. The Germans, the correspondent states, Ha im that Signor Mussolini has admitted that Germany's interests include tile Mediterranean, in addition to south-eastern Europe. Their joint, plans include . maintenance of the special position of Spain as the first major step. Seven countries would be associated with Italy and Germany, namely, Spain, Albania, Hungary, Yugoslavia, Bulgaria, Greece, and Danzig. Apart from certain metals obtainable through ordinary commercial channels from outside countries, it is asserted that this League would be virtually selfsupporting. Preference duties would be equal to a reduction in tariffs, and where preference was not suited to the interests of industry or agriculture in member countries quotas would be used. This nine-Power group would be open for the adhesion of other countries, especially the "yen bloc," that is to say, the Japanese Empire and the Japanesecontrolled parts of China. Turkey, Poland, Rumania, Portugal and the Portuguese colonies are also possible, partners. The chief obstacles are Czechoslovakia and Turkey, where Russian and British interests are appreciable.