Manawatu Evening Standard. FRIDAY, FEBRUARY 25, 1938 AUSTRIA SEEKING HELP.

Manawatu Standard, Volume LVIII, Issue 75, 25 February 1938, Page 8

Manawatu Evening Standard. FRIDAY, FEBRUARY 25, 1938 AUSTRIA SEEKING HELP.

Austria is likely to appeal to England and France for help, but it is difficult to see what these Powers can do. The leaders of Austria have submitted to Germany and the people must face the consequences. So far it appears to be a great triumph for Herr Hitler, a bloodless victory, but if we believe that tranquillity will prevail in Austria we are likely to be much mistaken. Germany\secures a great measure of control over Austria, but not with the people’s consent, and compulsory control of this character generally leads to revolts and bloodshed. . Britain and France are making enquiries, and that may, perhaps, prevent Herr Hitler from exploiting his victory to the detriment - of the people of Austria. The transition from independence to the acceptance of the German yoke has been so simple and so easily accomplished that one hardly believes that subsequent events pan possibly run smoothly. There must be reactions and repercussions, which may eventually involve Czechoslovakia and Yugoslavia, and possibly Hungary and Rumania. British official circles' are said to be disturbed over the failure of Signor Mussolini to defend Austria. When Germany earlier made a somewhat similar move against Austria, the Huce promptly placed 50,000 troops at the service of the latter, but on this occasion he has stood aside and allowed Herr Hitler a free hand. There .must be some cogent reason for this sudden change of front. It is thought that Signor Mussolini may have concluded a bargain with Ilerr Hitler whereby the latter has been permitted a free hand in Austria, in return for help for Signor Mussolini in Spain and the Mediterranean. If this is the case, the fact cannot be concealed for very long, and some move by the Huce will let out the secret. It is also suggested that Herr Hitler may have cowed Signor Mussolini, which does not seem probable. However, the London Stock Exchange developed uneasiness when the Austrian coup was effected, and the Exchange soon reflects good or bad movements anywhere in the world. But there is another factor to account for Signor Mussolini deserting Austria, and, that is economic. Italy’s plight is desperate. Quite recently the Italian authorities sold several hundred million lire’s worth of foreign securities, taken from Italian nationals, to obtain foreign exchange. Italy at one

time held considerable stocks of raw materials and these are said to be exhausted. London, it is claimed, has the best reason for believing that the economic life of Abyssinia has come to a standstill since the Italian occupation. The country is producing less than before the outbreak of the war. For instance, exports of hides, skins and coffee amounted to £1,000,000 in 1934, but now are less than £IO,OOO. It is estimated that Italy’s debit balance in the accounts for Abyssinia amounts to 11,000,000 lire a month in foreign exchange; and none of this vast sum is productive. Capital expenditure on the Italian intervention 7 in Spain is equally costly and unprofitable. Signor Mussolini’s hopes of controlling Spain seem to be further from realisation than ever.. The cost of living is rising daily in Italy and this is not a good point for Signor • Mussolini, for hungry people lose all sense of right, law and order.