ITALY AND THE BALKANS

New Zealand Herald, Volume LXXVI, Issue 23489, 28 October 1939, Page 10

ITALY AND THE BALKANS

Italy appears to be combining economic with political objectives in an endeavour to restore lost influence in South-East Europe. Along with reports of her attempts to form a neutral bloc in the Balkans conies news of the conclusion of an Italian trade agreement with Yugoslavia and of negotiations witty Bulgaria to the same end. Two factors were responsible for. Italy losing the relatively important position she had occupied in Balkan trade until recent years. The first was the imposition of sanctions in 1935 by the League of Nations, an ordinance observed by all the Balkan States except Hungary. The second was Dr. Schaclit's intensive trade drive in the region on behalf of Germany. Thus Germany's share of Balkan imports has risen in ten years from 20 to 42 per cent, and of Balkan exports from 22 to 45, per cent. In the same period Italy's share of Balkan imports has fallen from 8 to 6 per cent and of exports from 16 to 8i per cent. The striking Nazi advance has, of course, been assisted by the incorporation of Austria in the* Reich, but Italian tribulations over sanctions also gave the Germans a chance to supplant their partners in the Axis. It would be poetic justice if Italy should now seek to turn the tables while her ally is at war. In any case Germany, even before the acquisition of Czecho-Slovakia, had obtained a hold over Balkan trade larger than was compatible with the independence of these six small States. If Italy succeeds in reducing their dependence on" the German market —an aim also being pursued by Britain and France —the force of the Nazi "drive to the East" will be lessened and the cause of peace served.