Evening star., 1935-12-29
BRITISH WORRIED
BY WAR PROSPECT;
TRADE FORCES UP
Failure of Laval .Hoare Plan
ReviveS Fear of Trouble
With Italy.
BUSINESS IS BU0YANT
AS YEAR NEARS CLOSE
Record Christmas Spending, Good
Rail Traffic and Further Drop
in Unemployment Seen.
snscial pispatch to The Star.

special DlSpfISu 10 Inc SNoi'
NEW YORK, December 28.-Cables
and wireless dispatches to Business
Week give the following survey OF
business abroad for the week ending
today.
LONDON.-"The British are con-
cerned over the serious turn Of the
peace negotiations, With the failure
of the Laval-Hoare plan. and the ap-
pointment of Capt. Anthony Eden to
the post of foreign minister, Britain is
again faced with the possibility OF
trouble with Italy. Prime Minister
Baldwin's prestige is at low ebb, and it
is generally believed that he will re-
sign in the early part OF next year.
leaving Neville Chamberlain to lead
the national government. The coun-
try's fiscal policy will not be affected
by this change.
Except for this problem, the year
is ending buoyantly with record
Christmas spending, good rail traffic
and reduced unemployment"
Paris Celebrates Gayly.
PARIS.-"In spite of the internal
political tenseness, and the certainty
that France will be confronted with
serious development at home and
abroad during the first half Of 1885,
Paris is celebrating the holidays gayly
and is spending freely for gifts and
amusements.
Things have been going badly for
Premier Laval. The failure of the
Laval-Hoare peace plan; the appoint
ment Of Capt. Anthony Eden to sue
ceed Sir Samuel Hoare; the new in
terest in sanctions; the British move
to assure themselves of supportyin the
Mediterranean-all these things indi'
cate to the thinking Frenchman that
the Laval government is not likely to
last much longer than is necessary to
vote the budget, and that is expected
to be accomplished before the holiday
political truce is over.
"If-and when-the government Is
overthrown, it is expected that it will
be followed by another Of the same
coalition type"
Reich Faces Food Shortage.
BERLIN has had hap
pier Christmas seasons.
The food shortage is the problem
which Is worrying housewives most
but government officials and bushes:
leaders are no less perturbed by the
growing international tensions ir
Europe and the fear that serious
trouble is going to develop early ir
the new year.
THE seriousness Of the food crisi;
is emphasized by the governments
threat to punish German farmers
who are refusing to sell their surplus
now. This applies particularly to the
dairy farmers now whose refusal tc
deliver milk has caused the officials
in Berlin to start bitter campaign
to force them to continue routine
sales. The shortage Of milk in itSeli
is serious; without adequate supplies
of fat and butter. housewives declare
bitterly they must have what mill
is available locally.
'It is the food shortage which 1:
making the foreign exchange situa'
tion worse than it has been even ir
this last trying year. Faced with
serious unrest at home because Of tht
inability to supply cities an increas.
ing number Of food items, government
officials are struggling with one mair
problem-the building of export trade
to create exchange with which to buy
food abroad and the filling of tht
gap in public expenditures through 6
revival Of industry due to larger for
eign demand. If Europe can avoit
war in the Spring, natural economic
recovery in many countries may come
to the aid of the Germans"