DISPUTE SETTLED

Manawatu Standard, Volume LVIII, Issue 95, 21 March 1938, Page 9

DISPUTE SETTLED

LITHUANIA GIVES IN. POLISH DEMANDS ACCEPTED. GENERAL REJOICING. (United Press Association—By Electric Telegranb.—Convrioht.) LONDON, March 20.

It is reported from Ivovno that in view of the international situation the Government felt compelled to accept the Polish proposals for a settlement of the present dispute. A statement to this effect was made to Parliament by the Lithuanian Vice-Premier. The Minister of Communications thanked the Great Powers for their demarche, which unfortunately was unsuccessful. Long queues formed up at the banks to withdraw their deposits, under the fear that a crisis was approaching, but when it became known that Lithuania had agreed to the terms, general rejoicing replaced the previous gloom. Nevertheless the Government’s unconditional capitulation has left much bitterness in Lithuania, where it is felt that the surrender was to the Polish threat of invasion, with fears of a German coup at Memel in the background. Anti-Polish sentiment has intensified and is expected to find expression in tho resignation of three or four members of the Lithuanian Cabinet, including M. Lozoraitis (the Foreign Minister). Cabinet is already divided on the surrender.

A Warsaw message states that immense satisfaction is felt that a crisis has been averted. M. Tallinn (the Lithuanian Minister) visited the Polish Legation and it is understood that he communicated Lithuania’s acceptance of the Polish terms. An exchange of Notes' provides for the immediate appointment of the respective Ministers at YVarsaw and Kovno. The Polish Foreign Minister (Colonel Beck) issued a statement to the Press in which he said he hoped Lithuania’s acceptance would favourably affect the whole European situation by ending an abnormal situation, as diplomatic relations would help to solve all the Polish and Lithuanian problems. Celebrations of the settlement of the dispute throughout Poland are coupled with anti-Jewish outbursts, as the Jews are accused of withdrawing funds from the Government bank owing to the fear of war. , Many Jews were assaulted in the streets, 200 being injured. Eighty per cent. of the Jewish shops in Warsaw were broken into and ransacked and the goods destroyed, chiefly by students, whom mounted and foot police continually dispersed. The demands in the ultimatum were first that Lithuania should re-establish normal diplomatic relations by March 31, when diplomatic credentials must be' exchanged ; secondly, that all air and rail traffic, which has been suspended for 20 years, must be restored by March 31; thirdly, that the demands must be accepted without discussion, apart from technical details; and fourthly, that there cannot be dis.cussion concerning Vilna.