DELICATE SITUATION

Evening Star, Issue 22689, 1 July 1937, Page 11

DELICATE SITUATION

NON-INTERVENTION AGREEMENT POSSIBILITY OF COLLAPSE Preu Association—By Telegraph—Copyright LONDON, June 30. The diplomatic correspondent of the ‘ Daily Mail ’ says that the Prime Minister (Mr Neville Chamberlain) hurriedly conferred with the leading Ministers last night regarding the grave situation which might develop if the Non-Intervention Agreement goes by the board. The matter will be further discussed at a meeting of the Cabinet to-day. “There is little doubt,” adds the ‘ Daily Mail,’ “ that if the agreement collapsed Britain would immediately admit a state of belligerency in Spain and thereby grant rights to both sides. British ships would be withdrawn, and she would thus proclaim her complete neutrality.” “ France would either follow Britain’s example,” says the ‘ Morning Post,’. “or continue to recognise only the Valencia Government;” - Italy and Germany have been given until July 2 either to accept the Britisb and French proposals for continuing the naval control system or to suggest some alternative. NO FRESH DEVELOPMENTS AWAITING ITALO-GERMAN REPLY. LONDON, June 30. (Received July 1, at 10 a.m.) There, has been no development of any kind in the non-intervention question since yesterdayls meeting. It is simply a case of waiting for Italy and Germany to show their hand on July 2, when they-reply to the British proposals. ' The general assumption is that Italy and Germany are resolved to let nonintervention die from disunity, engendered by divergent interests. What will replace it Whitehall is unable to prophesy. Another deduction is that Italy and Germany are determined to keep the Mediterranean coast,of Spain free from international control. Whether this portends some more direct intervention in favour of France is at present mere conjecture. Herr von Ribhentrop, supported, by Signor Grandi, aroused some hope in the Non-intervention' Committee by a suggestion that he might have an entirely fresh scheme for non-intervention because the existing plan was foredoomed to failure. Pressed for an outline of the alternative scheme he remained silent. STATEMENT IN GDHMONS' (British Official Wireless.) RUGBY, June 30. ; (Received July 1, at noon.) Replying to a question on the French monetary measures in the House of Commons, the Chancellor of the Exchequer. said it was generally recognised that the readjustment .of the franc in September, 1936, was not entirely successful in re-establishing lasting equilibrium between the economic system of France and those in the United States and Britain, such as was the underlying object of the tripartite agreement, “ I understand that the measures now contemplated by the French Government, which involve removal of the upper and lower gold l limits now prescribed for the franc, are addressed to adjusting this situation,” bo said. “ I have been assured, however, by’ the French Go-, vernment that it is not its object to seek any exchange advantage from this adjustment, and it is anxious to continue close co-operation with the Governments of the United States and Britain. This is also' the strong desire of the British Government, and 1 am in close touch, with the French Minister.of Finance and the Secretary of the United States Treasury with this object in view.” PORTUGAL'S ATTITUDE LONDON, June 90. (Received July 1, at 12.15 p.m.) In the House of Commons Mr Eden, replying to Commander Fletcher, said Portugal had decided to discontinue for the time being facilities to observers on the Hispano-Portugueso frontier, but. pending a decision in regard to naval patrol. Portugal would continue to observe engagements in respect to the export of arms to Spain. Mr Eden said he had replied to Portugal hoping that if the Non-intervention Committee agreed to re-establishment of maritime control she would allow the observers promptly to resume their duties. Meanwhile observers were remaining at frontier posts. EVACUATION OF REFUGEES FRENCH GOVERNMENT CONSIDERING QUESTION. (British Official Wireless.) RUGBY, June 30. (Received July 1, at noon.) • The Foreign Secretary (Mr Anthony Eden), replying to a question in the House of Commons, said he had been in- repeated communication with the French Government regarding the reception of furthep refugees from Santander and the setting up of the necessary measures of control. The French Government was giving the question urgent consideration. Mr Eden stated that it was not possible yet to establish definitely whether, the Spanish merchant ship Cabopalos,

which was reported sunk by a torpedo, was sunk by a torpedo or a mine. He understood that General Franco’s forces possessed some submarines. MADRID HEAVILY SHELLED PANIC-STRICKEN CROWDS IN STREETS. MADRID, June 30. Savage fighting culminated in the withdrawal, of - the insurgents on the Jarama sector. Shells crashed throughout the night in Madrid. Crowds of people, who were strolling in the streets on the hot summer evening, became panicstricken. . The rebels are repos-ted to have advanced some distance toward Santander. They are supported by the rebel fleet, which is bombarding the coastal road. . THE LEIPZIG ARRIVES AT KIEL BERLIN. June 30. The German cruiser Leipzig, which was involved in the recent incident, when it was alleged that the cruiser was made the target of torpedoes from a Spanish Government submarine, has arrived-at Kiel. ■ , ■