THE EBB AND FLOW Of WORLD AFFAIRS

Dominion, Volume 29, Issue 226, 20 June 1936, Page 9

THE EBB AND FLOW Of WORLD AFFAIRS

Move to Lift Sanctions

(By

Argus.)

With every day that passes the possibility of an early lifting of sanctions against Italy seems to be increased. It is generally considered that Britain, and France are anxious for a speedy reconciliation with Italy in order to rebuild the Stresa front, although perhaps on different lines, and to be prepared to take concerted action in Europe in the event of any German aggression, a possibility which statesmen feel they cannot overlook. It has been said that the Continental Powers responded to Britain’s lead in imposing sanctions because they believed that when Germany acted in Central or Eastern Europe, Britain would, in return for their co-operation against Italy, co-operate with them against Germany. Now they are doubtful about this. An English writer has put the position thus: “Italy is essential to the defence of the status quo in Central Europe because the status quo stands or falls with the independence of Austria, which, if not defended by Italy, cannot be defended at all. The purpose of the Continental sanctionist Powers was therefore to support Great Britain sufficiently to commit her in advance to co-op -ration against Germany, but without pressing Italy so hard that she would be incapacitated from co-operating as well.” Little Entente’s Fear.

Meanwhile a new development is Austria is exciting great Interest, particularly in Central Europe. The "Reichspost,” the organ of the Austrian Government, has strongly hinted that the Pretender to the Austrian Throne, the Archduke Otto, may be invited to return to the country and rule. Ever since the war, fear that this may happen has been a nightmare to the countries of the Little Entente—Rumania, Yugoslavia and Czechoslovakia. They are apprehensive lest a restoration of the monarchy in Austria might be followed by attempts to regain the lands which Austria lost after the war. It almost seems they had some inkling of what was afoot—Otto himself recently came out into the open with a claim on his own behalf —as recently the leaders of the three countries have in conference with a view to strengthening their alliance, and their talks have been Immediately followed by military conversations at Bucharest. The Little Entente is sure to do all in its power to prevent Otto ever sitting on the throne of Austria. What Germany Offered.

British leaders are awaiting somewhat impatiently the long-delayed German reply to the British questionnaire on points in the German proposals which accompanied the occupation of the Rhineland. Herr Hitler offered new frontier agreements and a nonaggression pact for 25 years between Germany, France and Belgium, with Britain and Italy to guarantee the pact and Holland to be included in the agreement if the Dutch Government and the Locarno Powers were agreeable. He further offered to participate in a AVestern European air pact to conclude non-aggression pacts with States bordering on the east of Germany, including Lithuania, and to return to the League on the understanding that the question of “colonial equality," as well as of separating the League Covenant from the Versailles Treaty be considered by friendly negotiation. Subsequent German communications added something to the first offer. It was proposed to divide the peace negotiations into three stages, first a period for deciding the necessary procedure, secondly one of actual negotiation for essential pacts (to be limited to four months) and thirdly, a period for dealing with “desirable supplements” to the work of peace, such as disarmament and economic questions. Germany further declared herself willing to sign non-aggression pacts with the States on her north-east-ern and south-eastern frontiers, thus including Austria and Czechoslovakia.

Britain’s Questions. The purpose of the British questionnaire, sent with the support of the Locarno Powers, was to elucidate certain points in the German proposals. The British document is described as being couched In the most diplomatic vein, a fact which was reported to have been appreciated by the Germans, who approved of the lack of “peremptory questions.” The questions put to Germany were in many cases not even in the form of questions, but as comments into which Germany was expected to read a note of Interrogation. The bluntest query is that which invites the German Government to declare whether it now regards itself as in a position to conclude “genuine treaties," in other words, treaties that she would not later feel herself free to deny on the ground that she was not at the ’time of signing in a condition to conclude a binding treaty. Britain also asks whelher Germany will now say that she recognises and will respect the existing territorial and political status of Europe except as it may be modified by agreement. The questionnaire asks whether the proposed non-aggression pacts with Germany’s north-eastern and south-eastern neighbours may be guaranteed by mutual assistance pacts and adds that a general settlement would be facilitated if the offer covered also the Soviet Lnion, Estonia and Latvia.

Veterans’ Victory, At last, after a struggle lasting sine* the end of the war and after one President after another has vetoed Bills, the American returned soldiers, or veterans, have obtained their bonus payment and a huge sum was distributed from Washington during the week. Although earlier provision had been made for soldiers in the form of the War Risk Insurance Act, the major agitation grew out of the contention that while the soldiers were away at the war, those who did not go were earning far more money at home. After a wordy conflict, lasting some years. Congress in 1924 passed the World War Adjustment Compensation Act over the veto of President Coolidge. This provided veterans with 20-year endowment policies payable in 1945, and it was never intended that the amount should be paid in cash. This satisfied the veterans until the onslaught of the depression when a strong demand for a cash pnrmcnt arose. In 1932 an ermv of some 20.0(10 destitute veterans and their dependants invaded Washington to press their demands, ultimately to be expelled by force by the regular army. Next came the Patman Bonus Bill, which •"•''nosed Paying the full value of the 1924 certificates in currency printed for the purpose. This was promptly vetoed by President Roosevelt as Inflationary, but the power of the veterans’ organisation was so great that, after a further struggle, they gained their point, despite the further opposition of the President, and both Houses passed a measure providing for a payment to jeteyaoa la the form of “baby boml&T