MILITARY PACT.

Auckland Star, Volume LXXI, Issue 178, 29 July 1940, Page 8

MILITARY PACT.

OBSTACLE TO NAZIS. Possibility Of Soviet-Yugoslav Alliance. NAZI PRESSURE ON BELGRADE. United Press Association.—Copyright. LONDON, July 28. Russia and Yugoslavia, says the "Daily Express," have moved a step nearer to a military pact, with the ''dispatch by the Soviet of eight delegates to Belgrade, professedly to resume trade talks. However, under cover of these talks, gays the newspaper, Russia and Yugoslavia have been discussing a military alliance as a counter to the increasing pressure by the Axis on the Balkans. The wheat shortage in Yugoslavia is hindering the trade talks between that country and Germany, according to a report from Belgrade. Germany insists that Yugoslavia shall deliver the remaining quota of 3500 truckloads of wheat, .plus a further allotment of 20,000 truckloads of wheat and 10,000 truckloads of maice, this year. The Yugoslav newspaper "Politka" says: "The crop is so bad that we cannot deliver even part of these demands without endangering our own 'needs. We shall be short of wheat in February and March unless we take drastic measures. It will be impossible also to export cattle fodder this year." The Helsinki radio stated to-day that a trade agreement between Russia and Finland was signed on Friday. It provides for a permanent Russian trade mission of ten members in Helsinki. Finnish shipbuilders are negotiating to build ships for Russia. Transport between Finland and the Soviet is improving. Finnish dairy produce is also Mng sold to Russia. ■