Evening star., 1937-07-11
BY CONSTANTINE BROWN.

BY CONSTANTINE BROWN.
FEELING Of disaster tempor-
n arily averted hangs over the
~ foreign Offices OF Europe and
"A this feeling is shared by the
high officials Of the State Department
In Washington and the President
himself. They all hope that a catas-
trophe has been prevented, but the
majority admit that the latest pro-
voked incident-the Japanese Soviet
incident on the Amur River-was not
OF a nature to allay the fears Of
well-informed diplomats.
The Amur River tangle occurred
while the following situation existed
in Europe:
l. The London Non-intervention
Committee was by way of being
1unked because of the German and
italian determination not to accept
British and French war vessels to re-
place their own in the patrolling Of
the Spanish coast. Practically, that
committee-brain child of Anthony
Eden and Yvon Delbos-had but
little value. Its moral function as
demonstration of international soli-
darity'' was considered important. Its
disappearance will allow the Fascist
countries openly to assist Gen. Franco,
and creates the dangerous possibility
of France assisting the other side.
2. France. since the resignation of
Leon Blum, is in the throes of the
most severe financial and social crisis
it has known since the end of the
war. The treasury is empty. Georges
Bonnet, the new finance minister, has
adopted the most unpopular method
OF solving the financial troubles by
temporarily" abandoning the gold
standard, by devaluating the franc.
and by levying new indirect taxes,
which are bound to affect the working
classes Of the country. The credit
OF the government is at low ebb. The
new finance minister does not dare
float a new loan, the failure Of which
would irretrievably impair the nations
credit. The feeling of the general
public towards the financial stability
OF the country was indicated July l,
Wnen the stock market did not show
the upward trend-which usually fol-
lows currency devaluation. Fear for
the future and misgivings over the
ability Of the administration to mend
the financial structure of the nation
is rampant among all classes of the
French people.
More Than 5000 Reported Killed.
3. The internal situation in the
Soviet Union is worse than the out
side world is allowed to know. Reports
from Moscow have shown that three
or four score of prominent officials
have been sentenced to death and
executed. But little has been heard
OF the execution Of top-notchers in the
interior. According to reliable sources
more than 5000 individuals, army
officers, heads Of industrial depart
ments, heads or assistants to managers
OF railroads and other important
officials, have lost their lives because
they were either guilty or suspected
of being guilty Of high treason, against
the state or against the head of the
state.
There IS an effervescence In the
U. S. S. R. which few outsiders are
permitted to glimpse. But. of course,
the real situation is only too we'll
known to the high authorities in Toxic
and Berlin, who are partly responsible
for it.
4. Great Britain is following a
hesitating policy. On the one hand
she started her military program only
few months ago and it cannot be
completed for at least another year.
On the other hand, she must follow
the wishes and the desires of the
dominions During the imperial con-
ference last month the plenipotentiar-
les of the dominions made it very clear
that their countries would stand I'M
f1inchingly by the mother country if
Germany or Italy committed an act
Of aggression toward any nation in
Western Europe. But they would
certainly deny support to Britain If
she allowed herself to be drawn into
conflagration because of Czechoslo-
vakia or Russia. In other words, the
dominions realize that the Rhine is
their frontier, too; but nothing which
may happen east Of that river could
be of serious concern to their people.
This was the situation in Europe
when the japanese shore batteries
opened fire on three Russian gunboats
cruising on the Amur River. The
cause of the Russo-Japanese dispute
regarding the insignificant Bolshoi
and Sennefu Islands was by way Of
being settled at that time between
the japanese and the Soviet govern
ments.
The incident arising from those