Evening star., 1939-09-30
Italian Cabinet
Votes New Taxes
For Army Costs
Rome Stands Reody to Aid
In Quick Settlement Of
Europeon War
By the Associated Press.

~ tue AoBVCiAtOo EIvU3s
ROME, Sept. 30.-The italian
cabinet, meeting with Premier Mus
solini today, voted new taxes to meet
Italy's unbalanced budget and new
military expenses caused by the in
ternational situation"
A levy Of one-half Of ! per cent
on private property was approved,
together with . z per cent tax on
general business turnover.
The property tax is to be levied
on all real estate, goods and secur-
tiles Of all types, except bank de-
posits and personal clothing, owned
by all persons, companies. corpora
tions and societies over the amount
Of 10000 lire (about $500. Churches
and scientific and artistic collec-
tions are exempt.
The business turnover tax is q
nat 2 per cent levy on the gross
income from all business transac-
tions and rents and substitutes for
the present exchange tax.
Fear Conflict In Balkans.
Meanwhile, Italy stood by Ger
many and Soviet Russia as friend
ly power" ready to cooperate in q
quick settlement to bring an end to
the European war.
At the same time, there was not
much hope In official circles that
Britain or France would heed q call
for peace under terms set by Berlin
and Moscow. Diplomats feared,
however, q refusal in the face of
the new German-Soviet accords
might plunge all Southeastern Eu-
rope into conflict.
This might force Italy to take one
side or another. If she Is forced to
tight. . number Of Fascists say, she
will come to the side OF Adolf Hitler
Neutrality Delicate Question.
Whether Premier Mussolini would
be able to maintain Italy's delicate
neutrality remained q major ques-
ton. Fascist circles say Mussolini
alone will make the ultimate deci-
sion, with Italy's own interests in
mind, and they indicate 1t will take
more than Hitler's request for Italy
to Join him. At the same time, they
say Italy's non-participation Is .
part Of the policy Of the Rome Berlin
axis.
Few, II any, doubt that the Italian
people, from Mussolini down to the
humblest worker, want to continue
in peace. Last Saturday, in his first
public utterance since hostilities be-
gan. II Duce told Bologna Fascist
leaders: In q situation like the
present, full Of many unknowns, the
watchword has sprung spontaneous
~ among the masses Of authentic
Italian people-prepare in a military
way to meet any eventuality, sup
port every possible peace effort and
work vigilantly in silence"
Attacks on France StiIled.
The press has been extremely cau-
tious. There Is no longer public
mention Of the German Italian al
lance, 50 often described previously
as the pact Of steel" Newspaper
attacks on France have been stilled.
The cry against Britain, too, has
subsidized somewhat, although Mus
solini's own newspaper, II Poolo
DItalia, has said the British intend
to f1ght Ito the last Frenchman"
The British are said to be eager
for II Duce formally to declare
Italy's neutrality.
So far, the question Of German
supplies through Italy has not
arisen. Fascist writer's have pre-
dicted the British naval blockade
would be ineffective anyway, be-
cause Germany would be able to get
all she needed from Russia.