1936-08-31 — Page 6

THE HONGKONG TELEGRAPH, MONDAY, August 31, 1936.

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MONDAY, AUG. 31, 1986.

THE PACE OF RE-ARMAMENT

Probably the main question which is at present dominating the public mind at Home is the (DB-1762)

pare of the nation's re-arming. (DB2146) the need for which has arisen Played by:-American Society of Ancient Instruments. out of an attempt, now proved SCHWANDA-POLKA AND FUGUE (Weinberger) (DB-22231 futile, to induce other Powers to

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agree to a common RHAPSODY ESPAGNOLE (Ravel).

scheme of (DB-2367/81

disarmament. That effort hay- (DB2528/9)ing failed. Britain has fallen far

behind the necessities, and

pro- digious efforts became

nees sary to make up lost ground. Mr. Churchill may be given at times to exaggerated language, but he comes near to the pub- lic temper by his insistent, de- mands that the Government should not tolerate any delay or slackness in carrying through its big defence programme. Cer-

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YORK BUILDING.

N

TOT since Nelson car- ried out his famous coup at Copenhagen has Britain counted for less in a naval and military sense with the Baltic and Scandinavian States. With the Baltic now

a German sea, they are all hurrying to get under the German umbrella.

I have just returned from a six weeks' trip, during which I visited the three Baltic States, Finland and the three Scandinavian nations.

I talked with leading stales- men, business men and men in the street in each of the capitals and in the country, and I found a practically unanimous feeling that safety demanded that they should attach themselves to the German group.

This does not mean that they have become hostile to Britain. On the contrary, they are as friendly to Britain as ever, and they still rely on her economically. The Baltic States live by selling butter and bacon to Britain, and the Scandinavian States by selling not only butter and bacon but timber, paper and other wood products.

They all realise that Britain their best, and, indeed, their only market, and they in- tend to do all in their power to keep that imarket. but they have made up their minds that Britain to-day has neither the strength nor the will to defend them militarily in the event of a war in which the Battle might be- come

Important.

area.

ли

There are two reasons for this attitude.

Now a German sea, with German warships in control...

"GENERAL POST"

in the Baltic

the League fasco over Abyssinia. First, and perhaps strongest, is

There is no doubt that throughout the Northern States the feeling exists that Britain has been. bluffed by Mussolini, and the hard-headed statesmen of the North cannot understand how Britain had felt strong enough to that could have happened if

impose her will on the Duce,.

Two Factors

How far this attitude is due to Italian propaganda It is hard to Bay. Propaganda certainly was a factor and loss of trade another. Some of the Baltic nations, and particularly the one of the group which has no Baltic littoral, suf- fered severely from Sanctions.

Norway had a large trade with Catholic Italian peasant's Friday Italy in dried and salted Ash-the dinner-which was cut off by the application of Sanctions.

Other States also.lost-trado-h

timber, and so on, and these nations feel that they have been let down. They are idealistic enough to have been willing to put

CHATER ROAD.tainly his viewpoint better re-up with temporary loss if the

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flects the nation's feeling than that of Liberals and Labourites who are given to splitting hairs on this matter of vital urgency. It is clear from the review of the situation recently given in Par. liament by the Minister for Co- Ordination of Defences that good progress has so far been made, but some years of concen-

League principle had been vindi- Britain-for their own security. cated. They depended on 11-and

As It has fulled, they are forced are looking for it in the form of to look elsewhere for security, and alliances and understandings, Only two Powers have counted in the Baltle in the past-Britain and

trated effort will be needed be- NOTES OF THE DAY

fore the goal is finally reached.

In the interim, the nation's posi- A cous cf coins was recently tion may give rise to a measure made in all the British banks. of concern, but it is to be hoped of work, All Eash

This Involved an enormous amount was counted, that we may be able to steer and the amount held in each bank clear of serious international had then to be reported to the trouble at least until the coun-ables the Mint to estimate the re- Royal Mint. (Such a prozess en- try's defences are put in order. serves and thus to have some idea There was one point in Sirf the amount of new coln Bkely Thomas Inskip's review which much more coin is now in circula

to be required.) The fact that may not have received the attention than was the case before the tion it merits, namely, that the War is proof of the Increased delay in re-arming has the ad-prosperity of the nation. In 1934 vantage that Britain will be able pounds sterling in silver coin, as the banks held fourteen million to avail herself of all that is empared with seven million pounds newest and most efficient in air-sterling in 1913. The amount of craft equipment, and naval con- figures for 1984 and 1913 being copper had likewise Increased, the struction. Once the programme respectively £2,104,000 and £710,- is carried through, we shall 000. Gold han, slightly decreased have the most up-to-date Air still surprisingly high considering Ainge the War, but the amount is Force and Navy in the world. that gold coins are no longer in There is also the assurance that I circulation. The banks hold fifty- the industrial resources of the gold coin, as compared with sixty. two million pounds sterling of nation are great. The position nine million pounds in 1913. The which we attained at the end of total gold holding of the Bank of the Great War is a sufficient in-and ingots, is two hundred and ten England to-day, including both coin dication of what can be achiev-million pounds sterling fed once we set our minds to the

task and mobilise our resources pansion. The decision to em- at full strength. Tuking all the bark on the re-armament pro-

PHONE 28151. [facts arid prospects into account, gramme may have been belated, Į

It is clear that once the scheme but the manner in which the in carried through, no nution will task is being tackled should be able to ignore Britain's leave no doubt as to Britain's strongth and potentialities for position in the days which lie Fcóntinuous development and ex- ahead.

. Germany. Certainly since the Great War Britain was the domni- it. To-day, Germany undoubtedly nant Power, and perhaps before

Is in control.

The other factor which tends the Baltic Powers to line up with Ger- many is the Anglo-German naval agreement. These Powers feel that when Britain agreed to a German fleet one-third the strength of hers she deliberately surrendered con- trol of the Baltic.

The situation was sunimarised to me by a Danish statesman whom I have known for several years. Five or six years ago, when Denmark was practically scrap-. ping her fleet and disbanding her army, I asked him on what he re-

led for defence.

He replied. "On Britain, She must defend us. We cannot defend ourselves, and it would be foolish to spend our money on defences that would be useless."

-Denmark

A couple of weeks ago I talked again with this states:ian, and he told me:"The carding principle of Denmark's foreign policy is to be on good terms with the most powerful nation in the Balilc, To- day That power 13 Germany. Britain has abandoned the Baltic, and we are busy arranging affairs with Germany...

"Look at the map. The Great Belt, which is the fairway into the Baltic, les between one of the

SIDE GLANCES

BY

JOHN S. STEELE

Danish Islands and the German maliland. We could not hold it for a day against Germany, and no atlier Power could get in. The Baltic is a German sen."

All this raises the question. Why are the Baltic States,so worried about defence at the pre- sent moment?" The answer is that they fear a war between Germany and Russia, in which the States east of the Baltic at least are suro to be engaged.

Lithuania, Latvia, and Estonia are former Russian provinces. They won their independence by hard fighting, and they fear that In the event of a Russo-German war in which Russia was victori- ous they would lose it again.

In Ifelsink! it was frankly ad- mitted that Finland had an under-. standing with Germany, by which In event of war Germany could use the Finnish ports and would sup- Dort Finland with troops necessary.

if

Poland must not be forgotten in this summing-up of the Baltic situation, Although she has only

By George Clark

"The minute I laid eyes on him I knew he was going to fall madly in love with mo.”

Lerungrad

GERMANY

100

Mike

Jay

a very short Baltic lttoral, she is a Baltic Power, for her only outlet to the seu is through the corridor to Dantalg and her own port of Gdynia. She has maintained, and Is minintaining, the closest touch with the smaller Baltic States, and her contact with Estonia, and Latvia is particularly intimate.

་

Sweden

Least concerned of all the Baltic Powers 13 Sweden, which is strong enough perhaps to dofond-her-own- Independence. In token of that she has just adopted a scheme of large scule rearmament, but neverthe- less she is keeping a close watch on Baltic developments, and in the event of a Russo-German war she would inevitably be on the German side.

Economic forces, too, are helping German hegemony.

The British policy of quotas and restrictions 012 Import has hurt the butter and bacon trade.

What is most complained of is the uncertainty which it creates. Denmark, for instance, which was practically an economic colony of Britain, complains that her farmers no longer know how many pigs to raise for the British market. They have one figure to-day and another next week as the quota is changed. The same applies to butter, cheese, and other products.

Norway.

Norway complains of shipping subsidies which hamper her carry- ing trade. The Baltic States are in a similar position to Denmark with their butter and bacon. This has forced them all to seek other mar- kets, and they are finding at least the beginning of a market in Ger- many, which has again begun to buy foodstuffs abroad.

Incidentally, I ran across a strik- ing instance of how a compara- tively trivial economic factor may affect the peace of the world. Den-. mark, as a dairying country, has & quarter of a million worn- out mlich cows to dispose of every year.

about

When Britain was "her only market most of these old cows had to be destroyed. Britain would not have them, and the Danes have the samo taste for tender young beef as the British. About a year ago an agreement was arranged with Germany, by which she took these old cattle. The German workman Is eating cow beef, the German army gets cow leather, and the Danish farmer a substantial addi- tion to his income,

Trade makes friends, and the Darilah farmer now looks' on the German as a potentially important. customer who must be cultivated.

To-day's Thought"

·TO stumble toleo against the - same stone is a proverbial disgrace...

--CICERO..