EUROPE ACTIVE

Otago Daily Times, Issue 23437, 28 February 1938, Page 11

EUROPE ACTIVE

ITALO-BRITISH TALKS PREPARATORY WORK IN HAND GESTURE REGARDING LIBYA (United Press Association) (By Electric Telegraph—Copyright) LONDON, Feb. 26. (Received Feb. 27, at 7.15 p.m.) The British Ambassador in Rome, the Earl of Perth, who is visiting London to receive instructions with a view to the opening in Rome bn his return of the Italo-British conversations, continued consultations at the Foreign Office regarding the Government’s plan. He will probably remain in London until the end of next week. It is authoritatively indicated that Italy is temporarily reducing her forces in Libya in the hope of facilitating the conversations. The Suez Canal A report from Cairo states that Egypt demands a voice in any An-glo-Italian discussions regarding the Suez canal, concerning which Mahmoud Pasha is seeing the British Ambassador (Sir Miles Lampson) to-day. Mahmoud Pasha will direct attention to Article 6 of the AngloEgyptian Treaty, which states; “Should any dispute with a third State produce a situation involving risk of rupture with that State the high contracting parties will consult with a view to a settlement by peaceful means in accordance with the League Covenant any of their international obligations applicable to the case.” ENTENTE SOLID FRANCE AND BRITAIN HAND IN HAND NO RISK OF DIVISION LONDON, Feb. 18. Through thick and thin, France and Britain will stick together on Mediterranean policy. A Whitehall official said to the Sun to-day that there seems to be no risk of that division which broke sanctions down, and let Italy get away with Ethiopia. Knowledge of this close co-ordina-tion largely explains Italy’s disposition to make an approach. France and Britain are working together by land as well as by sea, regarding Spain, and if Italy tried to send large reinforcements to Franco, strong French and British action can be expected. France and Britain are also working together on the stirring up of trouble in Moslem countries. A small instance is given by France’s hint to the Grand Mufti, a fugitive from Palestine, that he must cease his agitation while in Syria. Further, while Britain is strengthening her position at the Suez canal. Aden and Cyprus, France is acting in concert in North Africa, and the British are using Algerian air and naval bases for their anti-piracy patrol. The Financial states that four of the Big Five banks, and several leading merchant and banking firms, are prepared to consider granting new credits to Italy, if and when the political risk is removed. It is not suggested that immediately Italy signed a “ scrap of paper ” money would be placed at her disposal. Italy’s exchange difficulties are largely the result of her aggressive foreign policy, huge expenditure on armaments, colonial and political campaigns, and antiBritish propaganda. This keeps the political risks at a maximum. Once Italy adopted a sensible foreign policy she would gradually become credit-worthy. FRENCH POLICY REVISION ADVOCATED * A SECRET AGREEMENT REVEALED PARIS. Feb. 27. (Received Feb. 27, at 8.30 p.m.) M. Flandin, in the Chamber of Deputies, advocated a revised French policy, including recognition of the Italian Empire in Abyssinia. He thanked Mr Chamberlain for his support of France, but declared that Britain would increase her undertakings to France only when France had shown ability to carry out her obligations by increasing the production of armaments, reorganising her finances and her morale. M. Flandin also revealed that the Stresa pact included secret military agreements, by which Italy guaranteed France against the reoccupation of the Rhineland, which occurred 11 months later. M. Flandin asked why France was always entrenched behind Britain when she was an ally, not a subordinate.