Evening star., 1940-01-20
Biggest Arms Budget
Since Last War Is
Approved in Italy
$542. 900. COO to Be Spent
For MiIitory Purposes
In 194O-41 Fiscal Year

~ the Associated Press.
ROME, Jan. 20.-Premier Musso-
linis government today approved
Italy's biggest military budget since
the World War to meet possible dan
gers growing out of the current
European war during the coming
year.
The cabinet authorized the ex-
penditure Of 10.846, 900 900 lire (about
$542, 100000 for military purposes in
the fiscal year beginning next July l.
The enlarged military expendi-
lures represented an actual increase
Of about $75,000,000 over the cur
rent military budget, which has been
progressively increased by emer-
gency appropriations to about $780,
663 200.
The total 1940-41 budget, which
the cabinet approved, was set at
1896 ,000,0OO lire (about $1,745, ,000,-
OO0), with a deficit OF about 6,000,-
UVU,UUU lire \$5UU,VUU,UuU).
Aim Is Armed Efficiency.
A cabinet statement said the large
arms appropriations for the army,
navy and air force were designed to
''meet the undeniable necessity of
placing the armed forces in a con-
dition which will assure the great
est efficiency for any event"
This efficiency would be attained,
the announcement said, 'by series
of important measures which will
be gradually put into effect"
The cabinet decided to issue nine
year per cent bonds to meet the
budget deficit and retire previous
issue of nine-year bonds which falls
due this year.
Government leaders foresaw the
possibility that exceptional re-
quirements of the international sit
uation" might necessitate addi-
tional emergency appropriations
during the budget year. Such ex-
penses, they said, would be met by
appropriate means"
Won't Attend Balkan Farley.
italy, a high authority said to-
day. will be absent from the Balkan
entente conference at Belgrade
February 2, not even sending an
observer, as some had expected her
to do.
The italian decision, along with
reports that Hungary and Bulgaria
also would refrain from sending OBJ
servers, has narrowed the meet
ing's scope. in the view of diplo-
matte circles.
1taly's desire to avoid any con-
tact with the entente of Rumania,
Yugoslavia, Turkey and Greece,
which long has been considered as
under French tutelage, was under
stood to be the reason for Rome's
hands-of attitude.
Premier Mussolini has preferred
to carry out his foreign policy
through direct diplomatic contact
with individual capitals.
Expected to Avoid War.
Italy, while arming for the pos
sibility of war, is expected in for
eign circles to avoid as long as pos
sible any complications that might
involve her directly, or indirectly,
in fighting.
On the other hand, Ettore Mutt,
Fascist party general secretary,
warned Italians Wednesday they
must be ready to take up arms at
any moment. This was intended,
many diplomats believed, to shake
people out Of the feeling that Italy,
while making money from the wars
trade opportunities, had escaped its
dangers.
That Italy considers the dangers
OF the conflict real is shown by the
fact that she is rushing her army
into readiness for spring.
Army leaves are expected to
terminate by April so the present
force of some 100000 men will be
back to more than a million, per-
haps 100000. New guns, tanks
and airplanes will be ready Stocks
OF supplies will be stored up.
Italians in government circles say
1taly's might is intended for de-
tense not adventure