ALLIES PAY CASH.

Auckland Star, Volume LXX, Issue 305, 27 December 1939, Page 8

ALLIES PAY CASH.

NEUTRALITY OP ITALY.

LONDON", December 22.

Italy is doing a large business with Britain and France on a cash, basis, which is regarded as a favourable omen for Italy's future attitude towards the Allies.

A strong warning against acceptance of rumours that Italy and Germany are united in secretly supplying armaments to Hungary and Finland for the purpose of blocking Russian expansion is given by the Rome correspondent of the "Sunday Times": —

"German propaganda (writes the correspondent) at present is busier than ever trying to revive the old story that Germany is seeking to collaborate with Britain and France in defeating the Red menace. The latest attempts are stories that the Germans refuelled Italian warplanes supplied to Finland, also that Germany permitted the passage of tanks and mechanised units from Italy for service on the HungarianRussian frontier. It is Germany's oldest and crudest propaganda."

The "Sunday Times" adds: "Such a propaganda atmosphere makes Italy's task of preserving her neutrality more difficult. Certain Nazis microscopically scan Italian newspapers and complain if (Jermaii news is not given sufficient prominence.

"On the other hand, Italy is doing a large cash and carry business with Britain and France, -while cash ha* not Ihmmi a prominent feature of Italianfiernuin trade. It is heartening that Itnly bus received a £5.000,000 order for steel containers from France just at a time when Italy needs money. It ia a favourable sign, in view of further rumours that Italy is contemplating 'grrnt, far-reaching" decisions' in the spring."