HUNGARY WOULD TRY TO REMAIN NEUTRAL.

Auckland Star, Volume LXIX, Issue 207, 2 September 1938, Page 7

HUNGARY WOULD TRY TO REMAIN NEUTRAL.

EVENT OF CONFLICT. No Understanding Reached ; With Germany. RECENT VISIT or REGENT. fnltcd FresH Association.— Copyright. (Received 2 p.m.) BUDAPEST, September 1. If any European conflict broke out Hungary s aim would be to remain neutral, Dr Bcla Imrcdy, Hungarian Minister, (old the "Daily Telegraph" Budapest correspondent. He added that no understanding regarding future co-operation between Cermany and Hungary was reached (luring Admiral Horthy's visit to Berlin.

Germany had not attempted to exerriss economic pressure on Hungary. On the contrary, Hungary's bargaining power was considerable as Germany needs Hungarian markets for her industrial products and depends on Hungary for a large proportion of her food supply.

GERMAN DEFENCES. Relays of Labour Digging in Rhineland. THOUSANDS EMPLOYED. (Received 2 p.m.) LONDON", September 1. The "Daily Telegraph" Berlin correspondent understands that the 230 000 men who are digging new Rhine defences will be withdrawn and replaced by a further batch of the same size. The arduousness of the labour to which many are not used has caused fatigue and dissatisfaction. Heavy rainfall severely damaged the work accomplished. The line - cannot b« fully prepared under three years, and at present the work will be concentrated at what is regarded as strategic weak spots. BUSINESS REACTIONS. WAR FEARS WANING? (Received 1.30 p.m.) LONDON, September 1. Another (lay of political suspense paused quietly on the markets, states the "Daily Telegraph." A sharp rise in Czech bonds suggests that war fears *re waning. Berlin bourse was firmer with gains «>f from 2 to 3 per cent in leading industrials.

"The Times" says the spirit of optimism is not reflected officially in Britain, where the gradual approach to a crucial period has increased, not lessened, the concern.

BRITISH SUGGESTION. HERE HENLEIN'S VISIT. (Received 1 p.m.) PRAGUE, September 1. The Sudeten spokesman stated that Herr Henlein's visit to Herr Hitler was suggested by Britain. Herr Henlein will be back in Prague on Saturday and will probably immediately call a meeting of party leaders.

An official report, issued by the Sudeten officials after an executive meeting, denies that there are differ*nces within the party and reaffirms unanimous support of Herr Henlein's programme.