Evening star., 1935-03-24
BRITAIN HOPEFUL OUTLOOK CLOUDED
PARLEYS WILL EASE BY CONTINUED LAG
EUROPEAN TENSION Of DURABLE GOODS
Future Trade Trend De-
pends on Whether Present
Fears Are Ended.
Special Dispatch to The Star.

Special Dispatch to The Star.
NEW YORK, March 23.-Cable.
and radio dispatches to Busines,
Week give the following survey Of
business abroad for the week ending
today:
Nothing in the Hitler
move to put Germany back on de-
fense basis caused any sudden alarm
! in London. 1t did bring to the sur
face a fear which has been growing
in Britain for months, but which has
not been communicated to the
maSses-that conditions in Europe
could easily cause an open outbreak.
This dread has influenced executives
for months, just as it has worried the
higher political authorities.
This is why all Britain will focus
its attention on the coming visit to
Berlin of official representatives of the
former allies, and of the British Of
fetal talks in Warsaw and Moscow.
If some bargain can be struck with
the Germans which will ease i'm
mediate tension. business is likely to
recover some of the vigor of last Fall.
If no compromise is reached, busi-
ness in the near future will be even
more unsettled than it has been dur
ing the Winter. when executives IRE
just beginning to realize the serious
ness of international developments.
This would accentuate the weakness
of the pound would. in fact. start a
flow of funds from both Britain and
the Continent to New York London
rather expects the pound to continue
recent weakness. the dollar is likely
to be increasingly strong. Belgium's
shift to limited gold standard will
not ease the situation.
Company Reports Cheerful.
Against these unsettling factors
are several encouraging bits of news
Company reports continue to come out
in volume and quite uniformly show
improved earnings, larger dividends.
This ranges from the heavy indus
tries to the furniture and retail trade.
Though the weeks developments on
the Continent claimed the limelight,
obvious preparations for the ap-
preaching jubilee celebrations give
heart to the retail trade and to hotels,
theaters, transport lines and restau-
rants.
In addition. foreign trade for the
first two months of the year showed
some improvement. Imports for the
period were nearly $1O,000,O00 lower
than in the same period year ago,
while exports increased by nearly $40
100000. Contracts have been signed
with the Soviets for the importation
of 100000 standards of Sawn timber.
an increase of $4,000 standards over
the amount taken last year.
THE prime minister's health has
improved this week, and it now seems
that he will continue to head the gov
ernment until after the jubilee cele-
brationS are completed in May.
Shortly after that he is expected to
resign, though he is expected to con-
tinue in the cabinet which Stanley
Baldwin will then head"
PARIS.-"Outwardly France ac-
cepted the Hitler announcement calm
ly. There was little in it which al
tered the picture of Germany's secret
arming of which France has been
aware for more than year. But the
threat to the whole Versailles set-up
is source of genuine worry to Paris,
for the French are pledged to protect
numerous satellites carved out OF