ITALY’S COURSE

Te Awamutu Courier, Volume 55, Issue 3927, 16 July 1937, Page 3

ITALY’S COURSE

THE GERMAN ALLIANCE. FORMED WITH RELUCTANCE. A SPANISH ERROR. At close quarters the contours of the picture .which seemed to clear when seen from London become blurred writes Richard Freund in “The Spectator.” Beneath the fresh coating of Fascist dictatorship the fading colours of old Italy are still visible. Italy one had understood, was one of the corners of the Fascist triangle, deeply committed to a “front” with Germany and, to a lesser extent, with Japan. But there is neither cordiality nor trust between Italians and Germans. Common interest in Spain has lent to the half-hearted agreement of last autumn rather more substance than it was meant to have. But even in Spain the two Powers do not see eye to eye. As for Austria and south-east Europe generally, Italy compromised because she could not hope to keep Germany out for ever. Friction in these regions has not substantially lessened since last year’s truce. No one can predict whether a German assault on Czecho-slovakia would not bring the whole card-house of Italo-German collaboration tumbling down. Italy, it appears, fears nothing more than to be forced into a permanent entente with Germany, which would mean the end of her GreatPower dreams. Some nations acquire power by successful wars; others by geographical or economic advantages; yet others display diplomacy. Italy, now as before the Great War, must manoeuvre for greatness. In short her foreign policy is not, o.' not permanently, run on “ideological'’ lines. When dealing with Britain and France, the Italian Government is apt to stress the German connection; when dealing with Germany, it makes a fine display of the recent “gentleman’s agreement” with Britain. Recruiting For Spain. Recruiting for Spain is carried on almost openly. On the other hand, it is not at all clear what Italy’s policy is with regard to Spain. Obviously, things have not gone according to plan. The original motive of Italian support for General Franco was, 1 believe, alarm over the influence which a Left regime in Spain might have on France. As everyone knows, General Franco expected to win within a few days or weeks. The unexpected tenacity of the Government forces and, their reinforcement by French and Russian assistance, spoiled that calculation. Italy and Germany have been drawn into the Spanish adventure far more deeply than they meant to be. There is no doubt that Signor Mussolini at least, is still determined to help Franco to victory at almost any cost; what is uncertain is whether with expanding commitments the ambitions have risen as well. At home, Mussolini need have no fear of either Communist or other “Left” opposition. Active organisation against the regime is effectively barred by a system of supervision which, contrary to impressions prevailing abroad, has lost little of its oiiginal ruthlessness. There is, however, much criticism, and even resentment, of concrete measures and tendencies. The wholesale dispatch of men to Spain is condemned, sotto voce, by many people, especially women. Alleged corruption and bribery among higher functionaries of the regime is a source of widespread irritation. In the industrial centres of the north many people believe that they are carrying the burden of the Fascist regime while the south gets all the benefits. The Cost of Living. Above all, everybody grumbles at the rising cost of living. It is true that the large bureaucracy of the Corporations, which until recently had no practical purpose, has been put to the task of checking the rise of prices. Maximum prices have been fixed for a number of goods, mostly of the lower qualities; and the staple articles of popular consumption are at least not becoming dearer too rapidly. But goods of higher quality, which the middle classes are accustomed to buy, are quickly rising in price So are industrial raw materials, both imported and home-produced. Cf certain imported materials there is a definite shortage, owing to the official policy of restricting imports in order to improve the foreign trade balance.

There is no sign, however, of a break-point. The strain on the currency is not nearly as great as it is in Germany, and experts, with access to statistics which the public never see, believe that Italy’s balance of international payments need not at present cause undue anxiety. More difficult is the continued financing of State expenditure, both for internal purposes and for Abyssinia.