Evening star., 1938-07-26
ANG[0-U. s, TRADE
LKH|TCH Barred
BY CHAMBERLAIN
Cases of Great Difficulty
Not Entirely Resolved
He Tells Commons,
BROADER COOPERATION
SEEN IF PACT RESULTS
Premier Speaks on Foreign Affairs
for Last Time Before Three
Months Recess,
BY the Associated Press,

BY the Associated Press.
LONDON, July 26.-Prime Minister
Chamberlain, addressing the House of
Commons today on foreign affairs for
the last time before a three-month
recess of Parliament, declared that
negotiations for an Anglo American
trade agreement had come down to
certain instances of exceptional diff
Guilty and they are not entirely re-
solved"
He said. however, there was good
will on both sides and Il hope we
won't have to wait long before we
announce We have come finally tn
an agreed conclusion"
The premier said these trade talks
were an effort to demonstrate the
possibility OF these two great countries
working together on a subject which,
II they can come to terms, may prove
to be the forerunner of a policy of
wider application"
tUnof1cial reports Of the break
down of the negotiations, which
are being conducted here, have
been numerous from London and
Geneva. American officials have
maintained scrupulous silence. Mr..
Chamberlain's speech was the first
Official indication that the trade
talks had reached a deadlock
Prime Minister Chamberlain de.
clared. amid cheers, Let no one
imagine that, though We seek peace
We are willing to sacrifice even TO,
peace British honor and British Vita
interests"
The prime minister was defending
MS foreign policy in the last debate
before the recess.
Our aim Is not the less peaceable
because no one can imagine we have
reason to fear any foe," he declared.
Runciman Mediator,
During the debate the prime minister
announced that Viscount Runciman
former cabinet minister, had agreed
to become investigator and mediator
IN the dispute between the Czecho-
slovak government and its autonomy
seeking Germanic and other minorities
He said that the former president
Of the Board Of Trade would work
independently Of the British govern
ment in an effort to solve the problem
which was disturbing Europe.
This step, Mr.. Chamberlain said,
was taken I'm response to a request
from the Czech government" But
Lord Runciman would not have the
powers of arbitration with which
Winston Churchill wanted him in
vested if both sides of the Czech
minority dispute agreed.
To Churchill, Mr.. Chamberlain re-
piled, I'VE have not yet heard from
the Sudeten Germans"
Discusses Spain.
Turning to Spain. Mr. Chamberlain
announced that insurgent authorities
had agreed to"a British proposal for
investigation of bombings of British
ships which appeared deliberate to the
government.
He said the inquiry would be made
by two naval officers, one to be named
by Britain and the other by the in
surgents. If they agreed an attack was
deliberate, Mr.. Chamberlain stated, the
insurgents would pay immediate COM
pensation. If they disagreed, the mat
ter would be referred to third party
of British or Spanish nationality.
Summing up, Mr.. Chamberlain said
If only we could find some peaceful
solution of this CZechoslovak question
should feel that the way was open
again to further effort in a general
appeasement-an appeasement which
cannot be attained until We can be
satisfied that no major cause Of diff
ference or dispute remains unsettled