PARLEYS MOOTED.

Auckland Star, Volume LXX, Issue 153, 1 July 1939, Page 9

PARLEYS MOOTED.

POLAND AND GERMANY

French Envoy Believed To Have Latest Conditions.

PARIS PREPARES FOR CRISIS. United Press Association.—Copyright. (Received 1 p.m.) LONDON, .June .'(•>. The .trench Ambassador to War- ? a 7 conferred with M. Daladier. It is believed he brought the latest condition.-, on which Poland is prepared to negotiate. Tentative discussions between Poland and Germanv ave unconfirmedly reported to have been initiated.

M. Daladier has called a Council of Ministers to-morrow to study the international situation, particularly- in Danzi" and the Soviet pact negotiations. M. Lcbrun (President) will preside over the me.ting of Cabinet which expects tension. if grave trouble eventuates M. Daladier will mobilise all r ranee s fortes and recall Parliament. Meanwhile German troop movements arc being watched closely. M. Daladier conferred with the British Ambassador, Sir Erie Phipps. France Looks to Defences. France has opened enlistment rolls to foreign residents prepared to serve "for the duration of war." 1 ranee is looking to tier defences as the result of the reports of the calliii"up of Ccrman reservists and also because Italian troop trains are moving through the Bieriner .Pass, says the Paris correspondent of the British Associated Press. Marshal (lamelin is inspecting the fortifications on the Italian frontier, and General Yuillcmin, Chief of the Air Staff, is inspecting the Corsiean air bases.

The Talis newspaper "Le Journal" declares: 'Our predicament is enough to make the 1 ,">OO,OOO French war dead rise from their graves." lhe British Amliassador to Poland. Sir Howard Kennard, will fly to London. It is believed he is returning for important consultations regarding Danzig, says an lndei>endent Cable Service message. Some newspaper prominence is given to the report that Sir Howard Kennard has left for London by aeroplane, eays a British official wireless message, and that his return is linked with other speculative reports regaling Danzig. Inquiries in official quarters show that Sir Howard is due to commence his summer leave and the suggestion that he has been recalled for special consultations is denied. GERMAN FARMS. Over 100,000 Foreigners In Employment. FURTHER RESERVES PLANNED. (ReceivTHl 2 p.m.) LONDON, June 30. The Labour Ministry announced that Herman farms were at present employing 07.000 Italians, 1 ."i .000 Yugoslavs. 12,000 Hungarians, .">OOO Bulgarians, 4000 Dutch. 40.000 Slovaks, also large numbers of Czechs. The retail produce trade will be reduced one-third ill order to release a fresh labour reserve of 3.">00.000. Women and children so far have not been tapped.

Presiding at a Rcichsbank meeting in Berlin, Hcrr Funk, president of the Rcichsbank, foreshadowed a reduction in the taxes burdening I lie capital market, says a cable message from Berlin. MARKET "JITTERS." Warning Speeches And Rumours Of Crisis Blamed. L.C.C. LOAN COLLAPSE. (Received 11.30 a.m.) LONDON, June 30. A series of warning speeches by statesmen, combined with rumours of an early Danzig coup, and the generally more tense atmosphere, have further depressed markets. The turnover has long been so small that a number of Stock Exchange firms are discussing amalgamation. (Jilt-edged stock reacted on the failure of the London County Council loan. The Australian loan is now over 60/ discount. German bonds were sharply marked down, while Chinese also are easier, though Japanese show more restraint.

Public applications for the London County Council loan of £7,000,000, 3J per cent, at £96 10/, only amounted to £.100,000, leaving the underwriters with 94 per cent.

Sugar alone moved up in stagnant commodity markets.

The "Financial News" says that the market index yesterday fell by 1.1 to 77.2. the lowest since April 27, due to political nervousness, caused by fears of a German coup at Danzig and rumours that the British-Soviet talks had broken down. NAVAL CONSTRUCTION. SPEED-UP IN PRANCE. (Received 1 p.m.) PARIS. June 30. The French Government has decided to speed up the construction of two new aircraft-carriers and two battleships, the Richelieu and the Jean Bart.