Evening star., 1938-10-03
CzECH-HUNCARY
ACCORD IS NEAR
Commission to Fix Area Is
Suggested-Negotiations
Are Due Shortly.
By the Associated Press.

PRAGUE, Oct. 3.-Czechoslovakia
today tried to lay the foundation of
a new economic life inside the mar
rover borders of this once prosperous
realm which has yielded to German
and Polish territorial claims and
agreed to negotiate the demands Of
Hungary.
With German and Polish military
occupation of frontier regions proceed
ing quietly. the Supreme Economic
Council originally set up by Premier
Jan Syrovy as a defense organiza-
ton, was considering the nations new
industrial and financial status.
Probably not until the end of the
year will the borders of the new
state-which the premier declared
has the first will to hve"-be de-
termined exactly.
The precise German and Polish
frontiers are to be fixed by plebis-
cites. Prague is ready to start nego-
tiating with Hungary on the dispute
over the 100000 Hungarian minority.
Suggests Commission.
Foreign Minister Kamil Krofta an
swered a new Hungarian note which
asserted the right of self-determina-
ton for the Hungarian minority with
the suggestion that Czechoslovak-
Hungarian commission be named to
settle the dispute. Hungary was said
to have been agreeable and to have
asked that negotiations start at once.
Although the new borders have not
been determined, the nation knew 1t
had lost almost all of its textile in
dustry, which ranks fifth in the world.
Gone, also, was the entire porcelain
industry of West Bohemia, many coal
mines and much of the paper industry.
On the bright side of the picture was
the salvaging of almost the whole iron
and steel industry The Skoda arma-
ment works and the Witkowitzer and
Kladnoer steel plants remained within
the borders of the new state.
Prague and other cities were return
ing to semblance of normal life. Sol
diers were coming home, children were
playing in trenches which had been
dug in parks, and merchants were re-
moving strips of paper which had been
pasted on windows to prevent shatter-
ing during air raids.
The Czechoslovak government an
nounced the German Army yesterday
afternoon completed occupation of
the Southern Sudeten region, known
as zone l under the Munich agree
ment, while the Poles occupied Tes-
chen, a Polish area in North Central
Czechoslovakia.
German tanks and artillery were
moving into Zone No. 2, on the north
western border of Czechoslovakia, and
Weer to cross into the extreme western
end of the republic-Sudeten Leader
Konrad Henlein's stronghold-today
Czechoslovakia troops fell back in
perfect order ahead of the occupation
armies, the ministry of defense re-
ported.
Once the Germans were on the scene,
the regions occupied instantly became
thoroughly German. The Sudetens
welcomed union with Germany in
typical Nazi fashion. But there was
anxiety in the hearts of Jews, German
social democrats and the few Czechs
who had not joined the flood of
refugees fleeing into the interior of
the republic.
10000 Refugees Flee.
Refugees were moving both ways,
Czechs and Jews and non-Nazis mov-
ing out of the Sudeten districts and
Henleinist Germans entering the terri
ritory about to be occupied. Jewish
refugees accounted for 10000 of an
estimated 10000 who sought shelter
IN Prague, Brno and other cities.
Conservative Hungarian statesmen
said at Budapest today that Premier
Bella 1mredi's plan No. was to at
tempt to reach a settlement through,
direct negotiations with Czechoslo-
vakia
Should this fail, it was said. he
would submit Hungary's claims to q
new four-power conference as sug-
gested at Munich last week.
List Of Demands.
A foreign Office spokesman said
Hungary's demands included
"1-Unconditional, immediate re-
turn of all territories which are known
as purely Hungarian regions along the
Southern border Of Czechoslovakia.
2-An immediate plebiscite in all
other political districts of Slovakia
and Ruthenia to determine whether
these populations wish to be in Czech
oslovakia or Hungary.
S-The general right for q pleb!s-
cite Tor Ill other rainorities."