THE NEW CRISIS

Evening Star, Issue 23352, 23 August 1939, Page 12

THE NEW CRISIS

PACT INTERPRETATIONS CONTRADICTORY AND VARIED BEWILDERMENT GIVES WAY TO STUDIED REASONING REASSURING VIEWS FROM MOSCOW (British Official Wireless.) Press Association—By Telegraph—Copyright RUGBY, August 22. (Received August 23, at 1 p.m.) To judge by the news reports reaching London from European centres, the announcement of the proposed GermauIRussian pact at first gave rise to bewilderment everywhere—and not the least in Germany, . where in view of the marked difference in emphasis in agency statements from Berlin and Moscow and the absence of authoritative expression of the views of Russia herself, a host of varied and often contradictory interpretations of this development are in currency. While the critical situation in Europe compels the most serious consideration of an event of this character, commentators everywhere obviously find difficulty in entirely suppressing light reflections inspired by the spectacle of the author of the . anti-Comintern Pact hastening to the Soviet capital. in most countries the tendency—fostered by the triumphant terms in which the forthcoming negotiations have been heralded in the German' and Italian 'Press—to see the proposed pact as a reversal of Russian policy has given way on consideration to the realisation that that is far from being its only or most- likely significance. . This way of regarding the matter derived strength from later agency reports from Moscow. A message received in Loudon, for example, attributes to authoritative Soviet quarters the view that the Soviet-German Non-aggression Pact would be a serious step to ensure peace in Europe. Some circles are said to insist that such a pact would in no way bo incompatible with a defensive alliance between the Soviet, England, and France. This indication of the official Soviet view is regarded among journalists in Moscow as of the utmost importance, as revealing the undiminished desire of Russia to pursue the Anglo-Soviet negotiations to a successful conclusion. PDLAND'S ATTITUDE UNCHANGED

WARSAW, August 22. (Received, August 23, at 1.30 p.m.) The pact does not modify the attitude of the Government one iota. It does not change strategic plans in the ©vent of war, the presence of a Russian or German army in Poland being regarded as equally menacing. Poland merely relies on raw materials from Russia, which the pact, it is believed, does not affect. FRENCH RESIDENTS ADVISED TO LEAVE GERMANY LONDON, August 22. (Received August 23, at 2 p.m.) Reuter’s Berlin correspondent says the French Ambassador has requested French residents to leave Germany. LEAVE FOR DUTCH TROOPS STOPPED THE HAGUE, August 22. (Received August 23, at 10 a.m.) Leave for Dutch coast and frontier troops has been withdrawn. ON DANISH COAST german warships laying mines LONDON. August 22. (Received August 23, at 11 a.m.) German warships wore reported off the Danish coast carrying out mine-lay-ing exercises. Sweden has ordered her second submarine squadron, which was due' to visit Ostond, to remain in home waters. STEP TO ENSURE PEACE AUTHORITATIVE SOVIET COHMEHT MOSCOW, August 22.: (Received August 23. at 11 a.m.) Authoritative quarters say that the pact is a step to ensure peace and insist that it is in no way incompatible with the British, French. Russian defensive alliance. "A PERMANENT ALIGNMENT" SEMI-OFFICIAL STATEMENT BERLIN, August 22. (Received August 23, at 1 p.m.) It is scmi-ofßcially stated that the pact represents a permanent European alignment and is not a mere tactical manoeuvre. It is an event of immense historical importance, decisively affecting long-term German and Russian relations.

AMERICAN REACTION SOVIET DUPLICITY SUSPECTED PLAYING ONE SIDE AGAINST ANOTHER WASHINGTON, August 21. Official circles were startled by the German and Russian move, and express the opinion that it will spur President Roosevelt’s drive to amend the Neutrality Act in favour of England and Prance. There is some scepticism whether the non-aggression pact will actually be completed. It is felt that the Soviet may be endeavouring to force England and France to meet her demands for an outright military alliance. It is felt in some quarters that the agreement will be passive, not aggressive,'and it is pointed out that it will be merely a reiteration because the non-aggression pact signed in 192 G has not been denounced. The ‘ New York Times,’ in a loader, says; “ If the step has long been contemplated it seems strange that M. Stalin went to such elaborate lengths of duplicity in initiating military staff talks with England and France. It would he stranger, in view of Russian reserves and suspicions, if the move were a sudden decision. It may still turn out to be grand stand play in the game of playing one side against another; If it is a real agreement it is an event of the utmost gravity. It is easy to imagine M. Stalin, as he surveys the sharpening struggle between Fascist and democratic Powers, resolving to lot them fight it out. A weakened, perhaps exhausted, Europe would hasten the end of the capitalistic system and offer fertile grounds for the spread of a proletarian revolution. Meanwhile the Soviet could turn with assurance eastwards and stiffen its attitude against Japan.” American manufacturers, fearing war. have pushed up the production of aeroplane motors for Franco to 400 a month. The neutrality laws would preclude further shipments in the event of France becoming involved in war. So far 610 motors have been shipped out of 2,345 ordered. STOCK EXCHANGE BUSINESS ALMOST AT A STANDSTILL LONDON, August 22. (Received August 23, at 10 a.m.) Business on the Stock Exchange is almost at a standstill. Jobbers marked down prices in all sections. Gilt-edged securities are nominally 2 points below yesterday, many being at their lowest level since 1932. The Berlin bourse opened strongly. NEW YORK STOCKS FAVOURABLE REACTION NEW YORK, August 22. (Received August 23, at 12.30 p.m.) The stock market, envisaging the Russo-German pact as an indication that the European crisis will be resolved peacefully, reacted favourably and the general list of stocks gained two points, while higher-priced shares rose up to five. Steel, motors, rubbers, and oils were among the largest gainers. Polish bonds lost one to nine points. German and Italian bonds rose.