A STORM CENTRE

Evening Star, Issue 21318, 24 January 1933, Page 10

A STORM CENTRE

THE DANZIG PROBLEM CONFLICT WITH POLAND Thirteen years ago 'the political heads of the nations of the world affixed their signatures to the Treaty of Versailles, which was designed to give peace to Europe. Since that fateful day the same political heads have met together on several occasions in order to free themselves from the deadlock resulting from the application of certain clauses in the Treaty. But one problem remains, and with the passing of days the necessity of finding an immediate solution becomes increasingly urgent, writes D. G. Arbuthnot in the London ‘ Daily Telegraph.’ The Free City of Danzig is facing an economic and financial crisis which is threatening the peace of Eastern Europe. Hovering on the verge of bankruptcy, this small principality does not know which way to turn. In despair, the inhabitants have been directing their footsteps into the camp of Hitler, which offered itself as the only haven from the impending catastrophe. TREATY-MAKERS’ FAULT. Poland looks on with misgiving, for in Danzic she sees a threat to the peace which is so essential if her programme of national reconstruction is to continue unhampered. She has been forced to retaliate, and by so doing has aggravated the position and driven the ’two countries further apart. The time has come when the Great Powers should concentrate their attention upon the I’olish-Danzig problem; its difficulties are fully recognised. For the tragic state of affairs neither of the contending parties is wholly to blame. The, fault with the treatymakers, who in severing Danzig from Germany to provide Poland with an outlet, to.'the sea, bowed down before the creed of self-determination and constituted her a Sovereign State. As a small principality, Danzig should have- absolute power within her own house, administering her laws, controlling her- .finances, and regulating heir-tariffs-according to the need of the moment. But in many of these matters Danzig exercises' no'control, and she has found herself in the unfortunate position of bearing a high responsibility .without the requisite power to fulfil her obligations. To provide money for the national services a Government must- have complete control over its Customs, so-that it can be sure of the amount of money it may expect to raise from that source. _ It must also be in. a position to raise and, lower tariff barriers in accordance with the needs of the country’s industries. RUIN TO THOUSANDS.

■Living 'in .a Customs . Union with Poland, Danzig has not the right to arrange her. own tarifls. She is at the mercy of Customs arrangements which have been designed for a country whose 30,0000.000 inhabitants are mostly engaged in agriculture, while the majority of Danzig’s 400,000 nationals arc engaged in industry. This situation would not have been so disastrous for Danzig had the tariffs remained constant, but in the process of reconstructing herself Poland has found it necessary to experiment wildly ■with her fiscal policy, and the frequent raising and lowering of barriers has spelt ruin to thousands of Danzig manufacturers, many of whom have been compelled' to close their doors. Danzig has been forced, as it were, to live on the edge of a precipice. Although her incorporation in the Polish Customs Union was arranged in order that the market of the great Slav hinterland should always be within reach owing to ethnographic differences the scheme was impracticable, and bad the city been handed over to Poland the present difficulties might have been avoided. But Danzig persisted in her right to independence, for 95 per cent, of the population were,of pure German stock. True to the'traditions of the race, she continued to maintain a standard ot living twice as high as that prevailing in Poland, while the disparity m labour costs as between the two countries was equally groat. DEFIANCE OF DECREES.

The Polish market was therefore limited from the outset. With the Panig guilclen standing at twice the value ol the Polish zloty, the cost ot Panzig goods in Poland was prohibitive. With the coming of the world crisis and the conseciucnt diminution of the purchasing power of every nation the forces of destruction have been approaching ever nearer to the city. . . . „ . , Paced with commercial and financial ruin, the Panzigers have put behind them all thoughts of living in peace and. harmony, .with Poland, and have

sought at every turn to defy the Polish decrees. The building of the port of Gdynia by Poland and the subsequent decline in the traffic passing through the harbour of Danzig should have brought home to the population the necessity of approaching Poland with an amicable proposition for the resumption of commercial intercourse. But hatred now runs too high, and all logic and common sense have Jong since been swept away. A lew months ago Danzig obtained from Poland “contingents” under which she was permitted to export certain of her manufactured articles to Germany to be “ finished,” and could then reimport them free of duty, provided they were for the sole use of the Danzigers. Under cover of these contingents Danzig imported goods wholly'manufactured in Germany, and smuggled them into Poland. POLAND’S ANSWER. When this action of the Danzigers became known there followed a devastating campaign by the Polish authorities, who sent their inspectors into every factory in Roland. If the inspection revealed tho existence ot German material it was traced back In the source from which it had emanated in Danzig, and an immediate ban was placed on exports from tho offending firm. Before he can obtain rommal of the ban tho offender must now sign a document in which he guarantees that Polish inspectors will have lice access to his factory at any hour of the day or night. Many manufacturers have refused to sign.'_ Rather than submit to the decrees in Poland they have closed down their factories and turned out into the streets additional hands of workers, many of whom arc destined for the annv of Hitler. ft is true that the commercial atmosphere has been somewhat cleared by the recent Danzig-Polisli agreement, which has as its object the removal ol all bans and boycotts. Hut frontier incidents occur daily, and should a crime of great magnitude ho perpetrated by these belligerents Poland may be provoked into appealing to the League of Nations for permission to send in her army.