The Waterbury Democrat., 1938-05-04

various ministerial buildings, the Chamber of Deputies, the Senate,
 the post office and other public buildings, the busSes and street cars all gay with Italian national and Fascist emblems.
 Observers Noted Rings Observers called it curious that a number of private buildings flew | huge red Nazi banners With little sWaStikas on tiny white fields. Some buildings displayed only the black sWastika on white background, with total absence of red.
 It was noted also that the Osser- vatore Romano, official organ of the Vatican, completely ignored Hit lers vista token of the Vatican's displeasure because Hitler did not respond to the urging of Mussolini to ask for an audience with Pope Plus.
 As for the diplomatic angle, Ital- ians admitted that Mussolini had lost a great part of his influence in the Danubian basin They added that he intended to hold his po- sition at the Brenner Pass and on the Adriatic sea against any Ger man expansion plans. They offered this as an explanation for the in- creasing cordiality of Italian rela- tions with JugoSlavia. Jugoslavia, it was noted, was the only nation to designate an official mission to at tend the naval maneuvers of Naples +<,tN, i,, attaches will represent other coun- tries.
 Austrian Deal Hurts Aware that MuSsolini is smarting over the annexation of Austria. ob- servers at Rome, the United Press was advised, wondered to what ength he would go to condone an 'Yparsion what price he would ask. They speculated whether he might get concessions in the Danubian market where according to Ital- ians, Germany is steadily increasing it's penetration.
 Most Fascist political quarters, ac- cording to United Press advices, be- lieve that MuSsolini is not prepared UO lOllOW IlIGlCl III tllly tttN SIiLuit which might put Italy against Great Britain and France. Reports of the possibility of an Italian-German military alliance, to further ex- pansion in the Mediterranean and in North Africa in event of war are greeted with no enthusiasm in Italian official quarters.
 MuSSolini, the United Press is ad-
 ..... l.as ICIt for some time that
 t was better to be friendly with Great Britain and France than to De an enemy.
 Seeks Britain, France
 Since the German annexation of Austria Mussolini has been working toward friendship with Britain and France without loosening his ties with Germany. If possible he would like to take up a middle position between Britain and Germany. He could not do this if he concluded military alliance with Germany.
 German sources in Rome say that the axis will continue to function, particularly because of it's basically dIlll IlieIdClCI, anu it's influence might be extended to include Hungary, Rumania and Jugoslavia.
 As regards this the most anxious pc Jple in Rome today were the Czechs. Czech residents felt that the fate of their country might hang in the balance during Mussolini's talk with Hitler today. They ex- pressed belief that if Mussolini even remained neutral, their country might get a breathing spell. They figure that Italian neutrality might be the same as siding with Britain a,d France and that Germany might hesitate to take any action to which Britain and France would react too strongly.