Evening star., 1940-07-02
By the Associated Press.

BUDAPEST, July 2.-Chances for
peaceful settlement of the issues
between Rumania and Hungary ap-
peared somewhat improved today
with unconflrmed reports that both
Rumanian and Hungarian forces
had withdrawn a short distance
from the border to avoid further in
cidents.
German interest in the troubled
situation was indicated by the
lengthy conference last night be-
tween Foreign Minister Count Csaky
and Otto Won Erdmanndorff, Ger
man Minister to Hungary, before a
session of the Hungarian cabinet.
(Hungary has ordered partial
demobilization and proposed a
demilitariZed zone on both sides
of the Hungarian Rumanian
frontier, according to an an
nouncement on the wave length
of the British Broadcasting Corp.
heard in New York by NJ B. c.
(This move, the broadcaster
was quoted as saying, was to
show Hungary's peaceful inten-
tions and was believed to have
been inspired by Germany
That strain still exists was indi-
Gated, however, by cancellation of
the Budapest horse races. This was
considered a good barometer, since
such step had not been taken since
the first days of the World War.
Bulgars Take Calm View.
Reports from Sofia indicated the
Bulgarian government took calm
view of the situation, with respons-
able circles confident that some
agreement can be reached outside
of war.
(The post World War settle
ment gave Rumania Transyl-
vania, which Hungary claims.
Southern Dobruja, which Bull
garia claims, went to Rumania in
1913, after the Balkan War;
An official Bulgarian explanation
minimized reported frontier Incl
dents between Bulgarian and Ru-
manian troops and spokesmen en-
phasized Sofas desire for peaceful
revisionism with world recognition
that Bulgaria's claims are just.
Prolonged cheering greeted a
statement in the lower House of the
Hungarian Parliament by Deputy
JOSEF Kozi-Horvath that 'the coun-
try is firmly behind any decision of
the government to act"
Tens of thousands of BeSSarabian
refugees are being sent to Transyl-
vania by the Rumanian government
to interfere with Hungarian inter-
ests there he declared.
Hungary on War Footing.
Hungary placed herself on a war
footing to back up her claims to
Pennsylvania but informed sources
said she might consider peaceful
settlement ceding her only part
OF the disputed territory.
Hungary's Minister to Rumania.
Gaszlo Bardossy, was expected to
return to Budapest from Bucharest
today to report on the Rumanian
situation. 1t was thought he would
report on the extent to which Ru-
may NC "lliAii6 w 81 w 2SetSAA
an accord with Hungary.
A repetition of border s'incidents'
which already have brought Hun
garian protest to Rumania appar-
emily was the only thing necessary
however, to send Hungarian troops
marching across the Transylvanian
border.
The protest said that unpleasant
consequences" might follow further
incidents.
Troops Moving East.
Despite the threatening outlook
Informed quarters saw indications
that Germany expects a peaceful
settlement in the fact that large
fleet of German-made bombers was
delivered to Rumania yesterday.
1t was pointed out that Adolf
Hitter would scarcely have permitted
the delivery if he anticipated wal
between Hungary and Rumania, in
asmuch as he assured Hungarian
(See HUNGARY, Page A-31