Breakdown

British Prime Minister Neville Chamberlain's new "realistic" formula for assuring peace to troubled Europe, namely, negotiation of agreements between nations to remove causes of friction, last week received setbacks from two sides. Friction between Czechoslovakia and Germany over the bitter Sudeten German question rubbed that corner of Europe raw, and the French and Italian conversations, designed to produce a Franco-Italian pact such as Britain signed with Italy three weeks ago, broke down over the war in Spain.

Keystone of the Anglo-Italian negotiations was Italy's pledge to withdraw her troops from Rightist Spain, at which time the agreement would go into effect. This seemed "realistic" indeed at the time. Day before the pact was signed Rightist Generalissimo Franco's troops planted their flags on the shores of the Mediterranean and both Chamberlain and Mussolini were convinced that further Leftist resistance would be short-lived. But the Leftists refused to quit. And the thing that gave them most heart was the arrival of at least 200 new planes, presumably from Russia (see p. 16), besides a stream of raw and war materials.

Fortnight ago, faced with a report from Generalissimo Franco that additional support was needed to quash the Leftists, pugnacious Premier Mussolini blurted out in a speech at Genoa that he could not guarantee success for the French-Italian conversations because in "the war in Spain, we are on opposite sides of the barricades." Before agreement could be reached Italy demanded, it was reported: 1) that France close her borders to Leftist supplies* and thus probably permit a Franco victory; 2) that France discard her military alliance with the Soviet Union. Possibly for bargaining purposes, he was also said to have asked that Italians in the French African protectorate of Tunisia be given special privileges and that France pledge not to conscript native troops for her armies. Further conversations between Italian Foreign Minister Count Galeazzo Ciano and the French Charge d'Affaires in Rome, Jules Blondel, were temporarily out of the question.

Last week, pugnacious Premier Daladier struck back at Mussolini and behind each of his moves shrewd French observers could see the heavy hand of the French general staff. The French military clique, alarmed at the reports of German batteries emplaced in the Pyrenees along the Spanish frontier, German air bases at Burgos and Vitoria, and Italian occupation of Majorca, has now become more concerned about keeping open the frontiers to Leftist Spain than French Leftist workers.

To newspapermen whom he called to his office, Premier Daladier explained that "France is occupied with looking everywhere and with everybody for a settlement, which, however, demands loyalty, reciprocity and parallel action.'' Thus indirectly he tossed on Signer Mussolini the blame for the impasse of the friendship talks. "However." continued the Premier, "France will persist in proving her close union, her calm self-possession. She can do it because she is strong. Her will for peace is her first guarantee, her strength is her supreme guarantee. No matter what the circumstances, France is fully capable of assuring the inviolability of her frontiers and her empire by herself." As if to add punch to the Premier's pronouncement came two moves in rapid succession. A five-billion franc defense loan, arranged by Finance Minister Paul Marchandeau, was oversubscribed a few hours after the lists opened to the public. An Air Ministry announcement revealed that France will begin her two-year plan of air force rearmament with the purchase of 100 fast Curtiss pursuit planes, ordered in the U. S. last week. And the general staff last week ordered the recruiting of an additional 60,000 native troops in Tunisia, thus bringing France's North African army to a total of 180,000: 1 20,000 natives, and 60,000 Frenchmen.

With events at this crucial stage, Prime Minister Chamberlain moved quickly to save the Franco-Italian agreement from complete discard and to save his own Italian pact from collapse. In Rome British Ambassador Lord Perth called on Foreign Minister Ciano, urged him to continue the talks. In London, the Earl of Plymouth was instructed to call the moribund Committee on Non-intervention into session this week. There Britain will propose that France close her Pyrenees frontier to supplies for a 30-day period, while the committee reaches an agreement on the withdrawal of foreign fighters from both sides. Last week France, anxious to stay on the right side of Britain and thus prevent Dictator Mussolini from driving his desired wedge between France and Great Britain, let it be known that she would accept the British proposals. This temporarily stalled off things, giving Britain another week to hope that a solution to the dilemma might come from the Spanish battlefields.

*Same day diplomatic sources in Rome confirmed this report, Premier Daladier denied it.

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