CRUCIAL DAY

New Zealand Herald, Volume LXXV, Issue 23133, 3 September 1938, Page 13

CRUCIAL DAY

EUROPEAN TENSION decision expected HITLER AND HENLEIN TO-DAY'S CONFERENCE NO OFFICIAL OPTIMISM By Telegraph—Press Association—Copyright (Received September 3, 12.10 a.m.) LONDON, Sept. '2 Some definite indication whether the tenson in Europe will be relaxed can be expected to-day. Herr Hitler in the forenoon will confer with Herr Henlein, leader of the Sudeten Germans, 'at Berchtesgaten, while the President of Czechoslovakia, Dr Benes, at Prague, is expected to receive Herr Franck and Herr Kundt to hear the Sudeten Germans' reply to his new proposals.

The correspondent of the British United Press at Berlin, however, suggests that the decision will be announced ' to-night after Herr Hitler and Herr Henlein have had their conference.

Another day of political suspense passed quietly on the markets, states the Daily Telegraph. A sharp rise in Czech bonds suggests that war fears are waning, •

The Berlin bourse was firmer with gains of from 2 to 3 per cent in leading industrials. The Times says the spirit of optimism is not reflected officially in Britain, where. the gradual approach to a crucial period lias increased, not lessened, the concern. An official report, issued by the Sudeten officials after an executive meeting, denies that there are differences within the party and reaffirms unanimous support of Herr Henlein's programme. The Sudeten spokesman stated that after his vi A sit to Herr Hitler, which was suggested, by Britain, Herr Honlein will be. back in Prague on Saturday and will probably immediately call a meeting of party leaders.

RHINE DEFENCES ARMY OF LABOURERS THREE,YEARS FOR TASK STRENGTHENING WEAK SPOTS LONDON, Sept. 1 The 250,000 men who are digging tho new Rhine defences will be withdrawn and replaced by a further' batch of the same size, says the Berlin correspondent of the Daily Telegraph. The arduousness of labour, to which many are not accustomed, has caused fatigue and dissatisfaction.

Heavy rainfall has severely damaged the 'work accomplished. The line cannot be fully prepared in less than three years, and at present the work will be concentrated at what are regarded as strategic weak spots.

AUSTRALIAN APPROVAL BRiTISH POLICY ENDORSED CANBERRA, Sept. 2 The Commonwealth Government has informed the British Government that it is completely in accord with the steps it is taking to obtain a peaceful settlement of the xlifficulties in Europe. The Prime Minister, Mr. Lyons, made this announcement after Cabinet had spent some hours last night discussing the international situation.