The Waterbury Democrat., 1940-02-21
Scandanavians Seek
 Neutrality, Integrity
Norway, Sweden, Denmark Forced Into Defensive Bloc War-ResOIved to Keep Conflict Out of Domains

I Immediate peace would be the best solution for the Scandinavians, but meanwhile they have drawn together in a common resolve to keep the war in Finland and the war on the vest ern front from spreading into their own sphere.
 Sweden has shown the greatest ef- forts to establish, for the first time in more than century, large mod ern army with complete and up-to- date equipment. The project is a severe strain on national economy, but has been supported almost unan- imously by the Swedish press.
 Norway, likewise considering the future possibility of victorious So- viet army camped on its frontiers, at present shows a tendency to make similar increases and improvements in her armed forces. Denmark, on the other hand, has made no appre- ciable attempts to increase her standing army. The attitude here is that 1t is questionable, with power- full neighbors on all sides, whether Scandinavian rearmament could do more than serve as warning that an invasion, successful or not, would be costly.
 If Finnish resistance continues, however, it may alter this attitude and raise the question of she role militarized Scandinavia could play in 8 war threatening to spread into the peninsula.
 Finland had never formed bloc with the Scandinavian nations. She had, however, close political eco- homie, and military ties with the Baltic states, with @ foreign policy based largely on Friendship with Germany.
 Since the Russian German pact and the Russian Finnish war, there has been practically a rupture of Finnish German relations, accom- panied by strong tendency throughout Scandinavia to consider Finland a member of the bloc.
 Economic considerations continue to hold the center of interest in Denmark, Sweden, and Norway. No common stand had been taken on shipping policies as yet, but 1t is felt that the three nations may soon unite to adopt means of cutting their rising losses in mercantile shipping.
 At present most Norwegian ships headed for England and France travel in British conveys, without any appreciable decline in wartime losses. Swedish shippers are allowed to make individual decisions, and split almost evenly between travel ling in convoy and alone.
 Denmark, however, within easy reach for Germany, subscribers to German claims that a merchant ship travelling in convoy is legi- timate target for attack, and has forbidden all ships of Danish regis try to enter a belligerent convoy. The sharp rise in Scandinavian fuel imports for future emergencies, bringing with 1t an increase in un- favorable trade balance, may be in vain, 1t appears today, with the scandinavian governments dipping into their own emergency reserves to fill public fuel demands.
 Norway and Sweden have been less severely hit by the recent cold wave than Denmark, because of well-developed water-powered elec- trical plants, but much-needed re- serves are not being developed.
 The trade losses, aggravated by both the allied blockade on the sea and the German blockade in the air and under the surface, have in- creased prices of import necessities to the Danish consumer, with furth- CT price increases expected. At the same time exports appear slated for fur .her decline with all belligerents ordering their nationals to tighten their belts in 8 program of sharp wartime restrictions on consump- ton of goods.
 The sharp increase in freight rates increases the difficulties for Scan- dinavia, as their imports are paid for on 8 basis of cost plus insur- ance plus freight.