Evening star. [volume] (Washington, D.C.) 1854-1972, 1932-09-25
Elm NEW DEADLOCK
t. AT STRESA CONFERENCE
Farley Proves Illustrative of Fatal Clash
Between Political and Economic
Interests in Danubian Region. =:

the elections 1t had very bad time IN
the Chamber in putting through q
Czechoslovakian loan. France. too, Is
deeply engaged in Poland. and all her
| interest Is in seeing prosperity restored
in regions where her investments are
so large. And, it may be added Amer
lean investments are at least as con-
siderable as French.
| AS long as France, Germany and
italy cannot agree nothing can happen
however and any agreement between
these three countries can come about
only through British Intervention, as
the events at the Lausanne Confer
ence demonstrated. But the British
Who like the French, could only con-
tribute through loans and would not
open up any profitable markets there
| by, will not come in to any such project
At Stresa they refused bluntly to make
new loans. And that practically ended
hope of large accomplishment. If any
such hope ever existed In any quarter
Germany Helpless.
II Germany were financially strong
her domination in all the region from
the Baltic to the Aegean, first financial
and then political. would be inev1tabl
But bankrupt Germany can do moth
ing and Germany is not only bankrupt
but substantially d1sarmed. But the
collapse of the markets of Central Eu-
rope is no small factor in the economic
prostration of Germany itself, and no
real recovery in the Reich is likely
while all the Central European mar
ketS remain closed
! Like these Danubian states, Poland
| is. too. a natural market for German
manufactures as Germany is a market
for the foodstuffs and meat of Poland.
But once more political issues divide
natural business associates And Po-
land. like the states of the Little Entente,
is the ally of France Between Poland
and Germany. as between Hungary and
bitterness passes all eXaggeratlon and
along the frontiers the conditions are
little short of war.
Today trade is carried on IN the
Danubian area chiefly by barter, Ffnan-
cial relations across frontiers have
practically ceased Trade has shrunk
unbelievably In the agricultural coun-
tries like Rumania, Poland. Jugoslavia
and Hungry, the danger of starvation is
slight. So far the Czechs have been
able to endure the strain reasonably
well because Of their admirable bust
ness and financial methods. but even
they are beginning to feel the pressure
acutely
But economic and financial proetra-
| ton has not brought any lessening of
political bitterness. 1t is, too. hard to
see any hope of such diminution of
bitterness in any present time because
any conceivable economic readjustment
would involve political consequences of
grave proportions. If Germany had
her way an economic Mitteleuropa
might prepare the way for political
domination from Kiel to IStanbul
If France could impose her will Austria
and Hungary would be linked up with
their Slav and Latin foes in Central
Europe dominated by French political
and financial influence. Italy. on her
part. prefers to keep the Danubian
states separated and to play one against
the other. hoping for the eventual COL
lapse of French influence and the sub
stitution of Italian.
Hungary Key to Situation.
Today, as always. the key of the stu
alton is in Hungary. AS long as the
states of the Little Entente refuse to
return to the Hungarlans those border
lands wrongfully taken in the peace
treaties and still containing solid blocks
of Magyar people. all real association
between Hungary and her Czech and
Rumanian nelghbors is Impossible. And
as long as Hungary will not play BALI
with the Little Entente. this ccmblna-
ton cannot achieve any economic adj
justment of the Danubian region. But
today neither Rumania nor Czecho-
slovakia would even hear of the small
est territorial Cessions.
Like the Polish Corridor, the BAL
kanized' Central Europe remains
problem insoluble in the present
nationahstic temper of peoples. For
IS years economic decay has been
progressive in the larger part Of this
area, In the past two years the dis
aster has been complete Germany.
Austria. Hungary, Runania. Bulgaria.
Greece. sll the countries between the
Baltic and the Aegean, save Czecho-
slovakia are now actually or virtually
bankrupt But while this ruin Is due
primarily to political causes. no nodi-
flcation of the political purposes of the
various peoples is today conceivable.
And no important political party or
leader in any country urges such modt-
flcation.
Stresa showed Europe as it was much
more exactly than Lausanne. At the
latter city European statesmen were
assembled TO Dury CedQ issue ana
their hope was that a decent funeral
for reparations might inspire gener-
GUS gesture from America in the matter
of war debts. At Stresa Europe was
at home with itself And the result
vas new deadlock and fresh failure.
Exactly the same forces which make
disarmament in Europe impossible bar
the way to economic cooperation. So
far, while misery has threatened to
produce revolution in more than enc
country in Europe. it has nowhere led
to any considerable demand for inter
national as contrasted with national
istic policies.
And the spectacle Of a bankrupt.
chaotic and economically PROSTATE
Germany dema ndlng the right to equal
ity in ornaments with France and to
a revision in frontiers at moment
when these demands can only produce
fresh international disturbance without
prospect of any real gain. is significant of
the whole European situation. Try to
talk business in any capital from Berlin
to Bucharest today and the attempt
will fail instantly. For Europe is still
thinking political to the exclusion Of
all else And. in fact, it is only through
impossible political changes that those
European peoples who are now suffering
incredibly see any hope of economic
recovery.
(Copyright 1922