ECONOMIC AGREEMENTS

Poverty Bay Herald, Volume LXIV, Issue 19376, 14 July 1937, Page 13

ECONOMIC AGREEMENTS

NEED PACING EUEOPE

SMALL POST-WAR STATES

( .Specinl to tin l Herald.) AUCKLAND, this day

The troubled state of Central Europe as the result of territorial, racial, economic and other problems was discussed by Dr. Paul L. Dengler, director of the Austro-American Institute of Education at Vienna, when speaking at the weekly luncheon meeting of the Auckland Rotary Club. Dr. Dengler said that the peace treaties following the Great War had not brought the hoped-for solution to many ancient difficulties that existed in Central Europe. Many of these difficulties had arisen from the fact that numerous peoples had been brought , together under the AustroHungary dynasty against their will. Discontent and bitterness arose and were nursed for centuries.

Following the war Austria-Hungary was divided into seven different countries. That complicated the position economically, for the advantage of the old dynasty had been that the component parts had formed a strong economic unity. To a large extent Austria-Hungary had been self-sup-porting, not requiring to import a great deal, and providing its own market.

Now, however, small markets had replaced large ones. Factories in Austria, for instance, which once produced for 40,000,000 people now provided for only 6,000,000 people.

Surrounded by Enemies The post-war division of AustriaHungary had also resulted in a minority population problem which was accentuated in some States by the fact that the ruling races did not have a majority of the population.

Austria was the only country with practically no minorities.

Further, each State in Central Europe was surrounded by enemies and this involved the provision of military training and taxation. Every one of the new States was fighting for its existence, and those which had lost territory were dreaming of revenge and the day when their lands would be restored to them.

As a means of solving problems which existed Dr. Dengler suggested that regional economic agreements between the various States might be made as a preliminary to settlements on a broader basis. The chief hope, however, must come from an extension of educative propaganda. Discord was chiefly born of ignorance.