AGAIN THE NATIONS BEGIN TO ENTRENCH

Evening Post, Volume CXVIII, Issue 102, 27 October 1934, Page 25

AGAIN THE NATIONS BEGIN TO ENTRENCH

The following summary of anna merits flnanco given in the "Economist" tells its own story.

"Budgets have been .mortgaged for years ahead. In France, Italy, Japan, and in this country, the defence estimates for the current year are being increased by expenditure on supplementary defence programmes starting this year and extending from three to five years.

"Thus, over and above tlie ordinary Budget appropriations for defence, and despite a still uncovered budgetary deficit, Prance has her 'Frontier Defence Organisation,' started in 1931, out of which about 2,000,000,000 francs still remain to be spent; and she makes further expenditure of a military char-, actor under the special Treasury Account, called Outillago National, of December, 1931. "In Italy, Signor Mussolini announced at the end of May that an additional 2,000,000,000 lire (£33,000,000) would be shared equally by the Navy and Air Force between 1934 and 1940 inclusive; and this despite a deficit in 1933-34 of 4,000,000,000 lire and a prospective deficit this year of about 3,000.000,000 lire.

"Tn Japan, the 1933-34 Budget deficit

had to be covered by an internal loan; but the new naval, military, and air programmes for 1935 will raise the defence estimates, for the fifth year in succession, to an "unprecedented level; and here, too, the increaso in the 'extraordinary' defence Budgets and in 'special accounts' is most marked.

"In Germany, the 1934 estimates for the Ecichswehr were increased by a third, those for the Air Ministry (covering all air transport as well as 'the organisation of protection against air attacks') wore increased by onehalf, while the total defence, appropriations show an increase over 1933-34 of more than one-third, and constitute one-sixth- of the total Budget. •

"The Russian defence estimates for 1934 show a 15 per cent, increase to the record Soviet level of 1,800,000,000 roubles. In this country, the 1934-35 defence estimates were £4,765,000 moro than last year's; those for all throe services were increased; and over and above this there is, for this and the next four years, the new Air Forco programme, at an estimated total cost of £20,000,000, which was announced by Mr. Baldwin on July 19."