MAJOR CRISIS

Wanganui Chronicle, Volume 89, Issue 226, 24 September 1945, Page 5

MAJOR CRISIS

RUSSIA’S AGREEMENT WITH HUNGARY DIFFICULTIES OF COUNCIL GREATLY ADDED TO Reed. 8 p.m. London, Sept. 22. A major crisis developed to-day in the Foreign Ministers’ Council, which leaders of delegations are desperately making an effort to overcome, says the newspaper Observer’s diplomatic correspondent. The first sign of extreme tension was the cancellation of a morning meeting, after which informal exchanges went on all day, culminating in a plenary session in the late afternoon which lasted some hours. The belief is widely held that the meeting marked the turning point in the deliberations with a prospect that either the negotiations would be more .smooth and more fruitful in the future, or the present, session would be wound up with a frank acknowledgment of failure. The immediate cause of the crisis appeared to be the complete divergence of views between Russia and the western democracies regarding thc state of affairs in South-east Europe, after failure to agree to the Italian peace treaty terms. The schism was further aggravated by the news which reached London of a far-reaching economic agreement between Russia and Hungary without any prior consultation with other Allied Powers. This development undoubtedly seriously affected the atmosphere and adrUed to the general pessimism overhanging the Council. It is widely realised that little can he gained from continuing the Council’s deliberations in the manner of the past ton days. “The Russian-Hungarian pact makes Russia an equal partner in what virtually .are State monopoly con’npnies formed in order to exploit Hungary’s main industries, agriculture and transnori.” says the Sunday Timos' diplomatic correspondent. “The British and American v\w is that the nact raises three main questions. Fjrstly. whether it is proper for one Government of 1 lie Allied Control Commission 1o make such an agreement without the knowledge and approval of the other; sornrpHv. has the unelectod provisional Budapest Government power to make such a deal? Thirdly, are the clauses dealing with transport compatible with the International Agreement on the