Steps and Directions

"When England violates the rights of peoples this appears justified in the eyes of the democracies, as police are justified when they invade private homes and search and sequestrate property in order to bring criminals to justice!"

Thus peevishly--but not too peevishly--Dictator Mussolini's personal newsorgan Il Popolo d'ltalia grumbled last week at a Great Power with whom Il Duce is engaged in economic horse trading. On the books of Italian firms are Allied orders for munitions and other war supplies totaling over three billion gold lire ($157,893,000). These orders are being filled for Great Britain and France even ahead of the requirements of the Italian Army. Il Duce would like the Allies to buy more Italian food, fewer manufactures, but they want to continue to keep Italian heavy industry so tied up with their war orders that few if any Italian munitions can be shipped to the Reich.

"Further Developments." On this delicate point Anglo-Italian negotiations in Rome broke down recently, the British delegation left for home, and the British Navy for the first time blocked the steady procession of Italian ships bearing German coal from Rotterdam via Gibraltar to Italy (TIME, Feb. 26).

This week the conflict went beyond peevishness, developed into a first-class row. Italian Foreign Minister Count Ciano sent to British Foreign Secretary Viscount Halifax a stiff, formal note, warning that "the coal in question meets an indispensable need in the life and labor of the Italian people," criticizing Britain's coal blockade system it declared the blockade "is of the kind to disturb and compromise economic and political relations . . . between Italy and Great Britain," served notice that Britain would be responsible for "further developments." Next day Britain defiantly announced that it had taken into custody two Italian ships carrying German coal. In Rotterdam other Italian ships were still loading coal. Question: would the Italian Navy come after them?

Axis. Great Britain is prepared to supply Italy with British coal instead of German, and Italy must somehow get foreign coal if her industry is not to stop. Normally she imports four-fifths of her coal. German coal could be routed via Switzerland to Italy by rail, but the hard-pressed Reich cannot spare enough rolling stock for that. Last week Dictator Mussolini began warming up again the stale Rome-Berlin Axis.

Culture. The Axis has lapsed to such an extent that defunct was even the Cultural Accord of 1938 under which students, pedagogues, books and films were to have been exchanged between the Axis partners. This was abruptly brought to life last week. With Fascist fanfare every Italian paper blared that a Rome-Berlin agreement had just been reached "accelerating the rhythm of applying the cultural accord." Same day the No. 1 Roman newspundit, Virginio Gayda, who sends up many a trial balloon for Il Duce, tried to scare Great Britain into believing that, if it presses Italy too far, Mussolini may join Hitler in chumming with Stalin. "Threats to destroy Italian Fascism would put Italy on the same bench with the accused [Russia and Germany]," declared Gayda. "Despite their basic differences," he continued, "the three regimes" (of Fascism, Communism and Naziism) may yet startle Europe by "creating a new solidarity."

Delighted Nazi editors were quick to respond with blasts hailing "the firmly entrenched position of the Axis," and in Berlin bigwigs hinted that a Hitler-Stalin-Mussolini get together, anyhow on trade if not on politics, is just around the corner.

Jews. Into effect on March 1 went a set of regulations promulgated last June to solidify Il Duce's personal relations with the Fuehrer -- Italy's anti-Semitic code. This bars a Jew from owning in Italy a residence assessed at over $1,052; from possessing other real estate worth over $261; from owning, directing or managing any enterprise vital to "national defense" or employing over 100 persons; and from engaging generally in the professions--which in Italy are defined to include working as an engineer, pharmacist or agricultural expert. Exempt and permitted to practice the professions are Jews belonging to a family one of whose sons was slain fighting for Italy; Jews who enlisted for service in World War I; and Jews who were early members of the Fascist Party.

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