Evening star. [volume] (Washington, D.C.) 1854-1972, 1932-09-25
BY FRANK n. SIMONDS.
YHILE the actual results were
| insignificant. the recent con-

YHlLE the actual results were
IA | insignificant, the recent con-
wv ference at Stresa was illus
trative of the fatal clash
between political and eco
nomic interests in contemporary Europe.
The purpose of the assembly was to
seek again for some solution Of the
economic and financial prostration
which at the moment exists all over
the Danubian region and In varying
degree affects all the five states of the
region. Austria. Hungary. CzechoSlo-
vakia. ,IugoSlavia and Rumanla
In this area dwell some SO millions
Of people. quarters of whom were,
before the World War, subjects of the
Hapsburg monarchy. while the balance
lived in the independent states of
Serbia and Rumania. The peace
treaties, in creating CZeChoSlovakia, de-
stroyed the unity of the Austrian half
Of the old dual monarchy, while, in ap-
plying the principle of self determine
ton, they reduced Hungary from a
state equal in size tn Italy to country
smaller than postwar Greece.
Inevitably this dispersal of popula-
tons and territories resulted in a null
tipllcation of frontiers and these FROM
tiers in turn became barriers to the
very outset the change brought ruin to
the Austrian fragment and Vienna de-
Clined steadily Hungary managed to
endure until the great economic de-
preston. but is today little better off
than Austria. Czechoslovakia at all
times Jared best and is still the least
badly of of the five countries. Ru-
mania is in grave financial straits,
while Jugoslavls suffers both politically
and economically.
Seek to Halt Unrest.
For the past 10 years one Of the great
problems of European craftsmanship
has been to find some method Of arrest
ing the rapid economic disintegration
and consequent political unrest in this
DanEbtan region. Particularly in the
case Of Austria the League of Nations
has been active and in Hungary an
American. jeremiah Smith. acted as its
representative in reorga nizing Hungar-
ian, finances. But in the end both the
Austrian and Hungarian undertakings
Of the League have proved unavailing
and both countries are bankrupt.
In the situation which existed after
direct consequence of political anarchy.
The old Hapsburg monarchy has been
an admirable economic unit. Austria
had been the administrative financial
and business center. Bohemia, Moravia
and Silesia, now included in CZecho-
SlOvakla, had been the mining and in
dustrlal area. Hungary had furnished
from its fertile plains the cattle and
wheat.
To attempt to restore something of
the economic association has then been
the major purpose of those who have
sought To solve the problem, but the
political obstacles have been too formid-
able. Thus the Austr1ans from the
start have looked to union with Ger
many, the Hungarians have turned to
Italy. while the succession states. Jugo-
Slavla, Rumanis and CzeChoslovakla,
have made their connections with
Paris, As a consequence, while the
French and Italians have united to
block Austro-German union the Itahans
and Germans have stood together
against any French project and Italy.
alone, has never been able to carry
through any program.
Tariff Union Opposed.
Economically the whole Of the Danu-
ban basin is naturally the field for
German economic expansion as Ger
many is the market for the agricultural
products of the entire region. But since
economic penetration would almost in
vitably he followed by political. France
and her little entente allies have stood
fast against even a tariff union between
Austria and Germany And the at
tempt to realize such a tariff union
project was the starting point of the
crises of last Summer, which produced
the Hoover moratorium.
By contrast, tariff union of the
five states which France has favored
would be politically impossible and
economically Inadequate It would be
politically impossible because it would
be dominated by the three states of
the little entente who are allies Of
France II would be economically In
adequate because the population within
this area cannot consume the agrl-
cultural products of Hungary. Rumanla
end Jugoslavis. Nor can France
absorb any large part of the wheat and
cattle of her allies.
It is with Germany that all five
countries are naturally bound up and
in the case Of Fumania and Jugo-
clavla there are no direct political
obstacles to such an association. But
Rumani3 fears the Soviet union and
thus needs the assistance of Poland,
another ally of tNance, and the back
ing of French finance as we'll. while
.Jugoslavia fears italy and thus turns
to Paris Nlso Moreover, the financial
weakness of both Austria and Hungary
has compelled both to submit to French
coercion. But this submission has been
reluctant and provoked endless resent
nent.
France Anxious.
In the present circumstances there
fore Jugoslavia, RImania and Czecho-
slovakia are bound to France by polltl-
cal interests. and despite their logical
Interests in a German association. The
Austrians have been unable to realize
their natural association with Germany
because of their financial weakness.
Czechoslovakia and Hungary which
are economically Complementary, are
divided by bitter territorial issues. Italy
has exercised much influence in Buda-
pest. but in crises has been forced to
make way for France because of French
financial resources. And similar defeat
has overtaken Italian diplomacy IN
Fumania
But. having sunk more than $500
900 600 in the Danubian area since the
Close of the war. the French are now
ex0ious and quite unwilling to extend
thfir commitments. Just before the