Evening star., 1938-10-26
BY DEWITT MACKENZIE,
Associated Press Foreign Affairs Writer

Associated Press FOREIGN Affairs Writer.
BUDAPEST. Oct. 26.-Countries of
Central and Southeastern Europe
which lie in the path of Fuehrer Hit
ler's politico-economic march to the
Black Sea are in shocking state of
nerves, and in some instances actual
dread
Having seen German troops goose
stepping across dismembered Czecfo-
slovakia, these small states are fearful
lest their own sovereignty may be in
danger ultimately. not through annex
alton, but because Of fierce political
control which would in effect make
them vassals of the Reich.
This panlcky feeling Is due largely
to the fact no great power has an
nounced its championship of little fell
lows living on the sunrise side of Ger
many. France and England have
withdrawn behind the Rhine, so to
speak, and the Russian bear is quiet.
No Champion in Sight.
This being the case. there is no big
nation to stand in the way of Hitler's
drive to the east to establish German
domination. He can pretty well plant
his flag where he, plesses. X
1t isn't that small countries are
hostile to Germany. They are friendly
enough, speaking in general terms. but
they naturally don't want to lose their
independence. The fate Of Czecho-
slovakia casts heavy shadow across
lands from the Baltic to the Black Sea.
So far as the economic angle is
concerned. all these nations want to
trade extensively with Germany AS
matter of fact they would have to.
even if they did not want to. They
are too small to buy each others
products, which are largely agricul-
tural, and their only big customer is
the Fatherland, on which they depend
for absorption of a great percentage
of their output.
The quid pro quo is that they buy
German goods. Actually Maitland
trades a great deal on the barter sys-
tent will swap my motor cars for
your wheat.
Customs Union Seen Next.
This whole setup gives rise to the
general expectation that Hitler will
try to form customs unions with all
countries in question. That is, there
would be trade pacts providing for
favored-nation treatment to the vir-
tual exclusion of outside countries.
This would hit American trade,
among others. fairly sharp blow,
especially in such items as motorcars
and typewriters. For example, vir-
tually every automobile I saw in
Rumania recently was of American
make.
1t is but step from such sweeping
economic control to political over
lordship. and that is what small coun-
tries are shivering over. They realize
Hitler can apply tremendous pressure
if he sees fit. Hungary is particu-
larly anxious. lying as she does up
against the Reich.
Hungary sells the bulk of its exports
to Germany. The latter country. If
it chose, for any reason, easily could
apply pressure by cutting OF such
imports. and, experts here tell me. such
cessation Of trade would bankrupt
this country.
Scramble for Protection.
Because of all such potentialities in
this historic upheaval, small countries
are rushing against time to try and
create some sort of bombproof shelter
for their independence This doesn't
represent a move hostile to Germany
but merely protective action.
At this writing effort is being made
to form a defensive chain of countries
from the Baltic to the Mediterranean.
This entente, as projected. would in
clude at least Poland. Rumania, Hun
gary, and Yugoslavia and every effort
will be made to secure Mussolini's
adhesion to the bloc or at least his
moral support, since the scheme is
not intended to challenge the Rome
Berlin axis IN any way.
This plan explains in part the desire
of Hungary to secure Ruthenia from
Czechoslovakia. It also Is said to