THE Wairarapa Age MORNING DAILY. TUESDAY, MARCH 14, 1933. “SPARKS FROM DANZIG.”

Wairarapa Age, 14 March 1933, Page 4

THE Wairarapa Age MORNING DAILY. TUESDAY, MARCH 14, 1933. “SPARKS FROM DANZIG.”

It has been plain for long enough that the policy of “ relentless nationalism” to which Herr Adolf Hitler and his supporters are committed contains something mote than the germ of a threat to European peace. Suggestions are now being made that Hitler, flushed with his recent political victory, may determine to invade the Polish Corridor, the small but valuable territory including the city and port of Danzig which was taken from Germany under the Treaty of Versailles and now constitutes a free, state governed by a president, a senate and a diet of 120 elected members. If there is anything in these suggestions, good grounds exist for the uneasiness on the subject expressed in Britain, France and elsewhere. The possibilities of the situation are summed up in the reported statement of the President of the Danzig Senate (Dr. Ziehm): 11 Sparks from Danzig may easily start another war conflagration.’ 1 An invasion of the Corridor by Germany would at once involve that country in war, not only with Poland, which enjoys through Danzig an outlet to the sea, but with France. The League of Nations would thus be confronted, if it is not confronted already, with a much more menacing and difficult problem than it has ever yet had to handle. According to a cablegram received during the week-end, the real mission of Mr. Ramsay MacDonald and Sir John Simon to Geneva is to prevent an almost immediate conflagration. This is not necessarily an alarmist estimate of the situation and outlook. Germany has obvious reasons for regarding the existence of the Corridor with dissatisfaction. Apart from the loss of territory and the fact that a wedge is driven between East Prussia and the rest of Germany, Danzig and Poland constitute a single customs territory. These are facts upon which a demagogue like Hitler may play with disastrous effect if he so chooses.

It is to be perceived meantime that events in about Germany during the next few weeks will be of critical moment for the whole world. Whether Hitler is possessed of gifts of constructive statesmanship must be regarded as at best an open question. He certainly has remarkable gifts as a demagogue and appears now to be established so firmly in power that he -could hardly be dislodged at any less -cost than that of civil war. Using his power with wisdom and moderation, he might do much to establish European peace on more stable and secure foundations. The danger appears, however, that he may elect instead to puruse a course of reckless and headstrong folly which will bring his own nation and others to disaster. “I favour an understanding with all other nations, but it can only be reached among equals,” he is reported to have said in one of his latest speeches. A very great deal obviously depends on what he chooses to regard as a basis of equality. DANISH COMPETITION. Both, in this country and in Great Britain, there has been some rather harsh criticism of the raising of the New Zealand exchange on London on account of the handicap thus imposed on British trade. Admittedly, the raising of the exchange rate in January last by fifteen per cent, (from 10 per cent, to 25 per cent.) operates in much

the same way as a protective duty of corresponding amount against British and other imports. Little has been heard, however, of the fact that Denmark in January last made an exchange adjustment which imposed a substantially greater penalty on British trade than was imposed by the adjustment of the New Zealand rate. Since Denmark followed Britain off the gold standard in (September, 1931, her exchange had remained at about 18.15 crowns to the pound sterling. In January last, however, an Act fixing the exchange value of the crown at 22.50 to the pound sterling was passed by the Danish Parliament. In other words, Denmark thus depreciated her currency and raised her exchange on London by about 22 per cent. The change, it was pointed out, would bring correspondingly higher prices in Danish currency for Danish exports, most of which go to Britain in the shape of butter, eggs and bacon, but would decrease Denmark’s purchasing power in the British market. The adjustment of the Danish exchange was accompanied by substantial reductions in taxation on agricultural property and additional measures to assist industry and relievo unemployment. Denmark is our principal competitor in the supply of butter to Great Britain and her annual sales to that countryare valued at more than four times as much as her purchases of British goods. Now that restrictions on British imports of dairy produce are declared to be inevitable, this country and othe? Dominions plainly are entitled to ask for decidedly more favourable treatment than is to be accorded to Denmark. It must be hoped that in the trade negotiations Britain is now conducting with Denmark, equitable account is being taken of all the facts.