Evening star., 1939-01-29

WILL xu0Ul Id. out dSAAC AAOAAA CAA&D,
and frequently rendered economic a!
powers felt they had obligations toward
their proteges and did not squeeze them
economically and politically. The other
section of Yugoslavia-Croatia, Dali
malta, Slovenia, Bosnia and Herzego-
vina-belonged to the Austro- Hungarian
Empire.
Hungary lost her freedom centuries
ago and found salvation in forming
dual state with Austria. Because OF the
pugnacity and energy of the Hungarians
AS compared with the Austrians-they
frequently played first fiddle in the dual
monarchy. However, the army was Aus
trian (Hurgary was permitted only a
local militia without artillery and diplo-
matte affairs and empire finances were
directed from Vienna.
Trianon Treaty Resented.
The defeat of the central powers in
1918 made Hungary for the first time in
many years truly independent coun-
try. The Magyars smarted under the
harshness of the Trianon treaty. They
bitterly resented the territorial losses
which reduced the new kingdom to a
skeleton of the old monarchy. The mill
tary limitations imposed by the treaty
were hard to bear; so were in appear
ance the clauses which prohibited the
restoration of the Hapsburgs. But ac-
tually there was little love for the old
dynasty. The resentment of the Hun
garian population sprang primarily from
the fact that restoration was forbidden
by an unjust treaty.
Aside from these restrictions, however,
Hungary was free within her borders
She could trade with whomever she
desired; could treat her nationals of
whatever race or creed in her own man.
ner.
All this has gone. Germany's pene-
tration toward the East has transformed
two independent states into vassals.
There is little love for the Germans
and their system of government in either
country. The man in the street is out
spoken in his criticism of the Reich. The
men in high Offices are usually silent;
they grin and bear it. But given an op-
portunity, they say plenty. Both coun-
tries have known the domination of the
Turks. In Belgrade and Budapest I
heard the same tale: THE Turks sent
governors and soldiers here. But as long
as the yearly tribute was paid and there
was no open rebellion we had little to
complain of. They were poor governors;
they exacted heavy taxes, but when paid
they left us alone. The Germans seem
Unsuitable. They don't govern us. They
merely send instructions from Berlin.
Modern diplomacy permits them to
squeeze us under the pretext of trade
arrangements. But these trade agree
ments are more onerous than was the
yearly tribute paid the Turks"
Customers Have Disappeared.
Since the annexation of Austria and
the partition of Czecho- -Slovakia, Hun
gary has been cut off from the rest of
the world. Yugoslavia has an outlet to
the Adriatic, but there she must reckon
with the second member of the axis,
Italy. Hungary and Yugoslavia lack gold,
but produce large surplus of agricul-
tural products and certain raw materials
which Germany and Italy require. Be-
fore Munich" both had several GUS
toners in Central Europe in addition to
Germany and Italy. But Czecho-Slo-
vakia, deprived Of her main industrial
centers has now become an agricultural
state, while the trade with Austria has
been transferred to Germany. Beggars
cannot choose OF the total foreign trade
Of Hungary during 1888 so per cent went
to Germany and a. per cent to Italy. In
1899, it is expected that more than 80
per cent will be absorbed by the axis
Yugoslavian exports to Germany, Aus
tria and Sudetenland in 1938-until No.
vember-amounted to 81 per cent; i'm
ports from what is now Greater Germany
amounted to 54h per cent. The Italians
are taking some 16 per cent of Yugo-
slavian products and selling them less
than IL per cent.
This heavy concentration of trade
with the axis is causing hardships in
both the ,Danubian states. The Ger
mans and Italians purchase Hungarys
and Yugoslavia's food products and raw
materials at the world market price.
But since they pay in kind with finished
products which have no standard mar
ket price, they fix much higher charges
than obtained for similar merchandise in
France, Great Britain or the United
States. And the Danubians must pur-
chase their manufactured wares from
the axis because they, too, can pay only
in kind. The result is marked increase
in the cost Of living. Merchandise must
be sold at high prices because it is so
purchased and foodstuffs of which there
were plenty in the old days are becom-
ing scarce because they are exported in
large quantities to the relationships who
are buying not only for immediate needs
but to swell war stores.
To boot, neither Yugoslavia nor Hun
gary can obtain from the totantarian
states all the manufactured products
they want. Belgrade needs new war
equpment-tanks, airplanes and guns to
modernise the army. For nearly three