From August 3 to September 3
SPAIN’S CIVIL WAR
Radicals Dominant in Madrid. — Amid the welter of civil strife in Spain, there were also reports of conflict among the radical parties in control in Madrid, and evidence of increasing domination by the more extreme communistic elements both in Madrid and in Barcelona. Whatever the outcome of the war, it appeared probable that the industrial province of Catalonia might break from the rest of Spain. On August 19, after seizing and nationalizing the larger agricultural and industrial properties of the province, the Catalan generalidad, or government council, declared that it would act independently of Madrid in the conduct of the government and maintenance of public order. The Catalan authorities also took steps to hold the Balearic Islands, after rumors that Italy was interested in adding these to her possessions. French Socialists were reported in August to have resigned themselves to the ultimate failure of the Leftists at Madrid, but to have centered their hopes on the establishment of a socialistic state in the Catalan region.
Arms Embargo Established. —An encouraging aspect of the Spanish war, from the international standpoint, was that, despite the highly divergent interests and sympathies of the European states, all came finally into line in accepting the French proposal for an embargo on the shipment of munitions to either faction. The British embargo, declared August 19, revoked all licenses for export of arms, munitions, and aircraft to Spain or the Spanish possessions. Germany on August 24 set a similar embargo, despite difficulties with Madrid over the seizure of German airplanes and other alleged injuries to German citizens and shipping. The German note announcing the embargo expressed the expectation, though not the absolute requirement, that other nations would adopt “totalitarian non-intervention,” that is, would take due measures to prevent assistance from reaching Spain from either public or private sources. Italy and the Soviet Republic also adopted the embargo on condition that it was applied by the other arms producing nations, and by the close of the month the embargo was very generally in effect. Eleven nations, including Britain, France, and Italy, agreed on the formation of an international committee to control neutral policy.
Adoption of a policy of strict aloofness by other nations was made difficult by the inevitable injuries to neutrals and infringement of neutral rights by both the warring factions. At sea in particular problems developed similar to those which arose during the American Civil War. On August 20 the Madrid government declared a war zone around certain ports controlled by the “insurgents.” To this the United States replied that it could not admit the legality of such action unless an effective blockade was declared and maintained. The attitude of European powers was even more sharply critical, and it was reported that the British had secured a promise of non-interference outside the 3-mile limit. Germany protested the action of a Spanish government destroyer in firing on the German vessel Sevilla discharging cargo at the port of Larache, Spanish Morocco, and on August 20 ordered German naval vessels to resist forcibly any interference with German commerce outside Spanish territorial waters. Similar action was taken by the British government when the British merchant vessel Kamerun was held up on August 19 seven miles off the rebel-controlled port of Cadiz.
American Policy of Hands Off. — Regarding the Spanish civil war, the American State Department early in August notified diplomatic and consular officers that its attitude would be one of strict non-interference, and called on our citizens at home to observe patriotically this “well-recognized American policy.” To a proposal from Uruguay that the American nations offer their friendly mediation in the conflict, Washington officials replied that the prospects of favorable results did not at the time warrant a departure by this government from its well-established policy of non-intervention. In view of the airplane attack on the destroyer Kane on August 30, Secretary Hull intimated that American naval vessels might be withdrawn from the Spanish coast, and that diplomatic and consular offices might possibly be closed.
FRANCE
A Social Revolution. —What Premier Blum described as “the greatest social movement since the foundation of the Third Republic” was carried through during the ten-week session of the French Parliament which ended on August 14. Among the 65 new laws enacted were such revolutionary measures as the establishment of a 40-hour week, vacations with pay, collective bargaining between employers and trade unions, nationalization of arms manufacture, reform of the Bank of France, and government control of wheat prices and sales.
In the field of foreign affairs, aside from the apparently successful efforts of the Blum government to secure acceptance of the principle of non-intervention in the Spanish war, the most noteworthy development in August was the journey to Poland of General Gustave Gamelin, Chief of the French General Staff. This visit, it was believed, meant a revivification of the 15-year-old Franco-Polish military alliance, and the ensuing discussion of plans for motorization of the Polish Army was expected to pave the way for a French military loan. General Gamelin’s visit was quickly returned by General Rydz-Smigly, Inspector General of the Polish Army and virtually dictator of Poland, who journeyed via Vienna to attend French Army maneuvers. The exchange of visits was very generally attributed to the new defense problems created by German army increases.
GERMANY
Army Service Lengthened. —To offset its acceptance of the French plan of an embargo on arms exports to Spain, the German government on the same date announced to the world its decision to extend by a year the period of compulsory military service. This measure, which was at once put into effect, made the total period of military and labor service two and one half years, and will increase the German standing army from 600,000 to about 800,000, though its total strength is estimated at over 1,300,000. The move was resented by the French on the ground that it would bring the German military forces practically to their pre-World War strength, and would tend more than ever to divide Europe into two leagues of hostile nations. Small states will now be inclined to look to Germany rather than France for assurances of security. While to an outsider it may seem a matter of indifference whether they look to Germany or to France, the French argue with some justification that German assurances are dangerous supports on which to lean.
German Progress Eastward. —Germany’s campaign for increased trade and political influence in Eastern Europe and the Balkans has recently been pushed with considerable success. First came the Austro-German accord, with its resultant improvement in travel and trade. Early in August this was followed by the announcement of a trade pact with Lithuania. Like the Austrian agreement, this will provide an outlet for German manufactures in exchange for agricultural products, and it will tend also to ease the sharp tension between the two nations over the Memel Territory. Similar trade exchanges with Greece and other Balkan states, arranged during Dr. Schacht’s recent tour of Southeastern Europe, will considerably strengthen Nazi economic and political influence in these regions. Germany’s aim, apparently, is to establish her relations with the nations to eastward without the dubious assistance of France or French allies.
Locarno Parley Plans. —Despite the disturbance created by the Spanish civil war, and also by Germany’s sudden army increases, British and French diplomats still planned hopefully for a meeting of the Locarno powers some time this autumn, and for a settlement there not only of the Rhineland difficulty but of other European problems. While it was originally intended that this meeting should precede the League Assembly in September, obstacles soon forced its postponement to a later date, if indeed it is to be held at all. Germany, with the support of Italy, made it a condition that the meeting should keep strictly to the problem created by the Rhineland occupation, without linking it up with the security of Eastern Europe. In setting this condition Germany apparently wished to drive an opening wedge into the Franco-Soviet alliance, or at least test its strength.
EASTERN EUROPE
Soviet Plotters Executed. —Perhaps intentionally on the part of the Soviet authorities, popular attention in Russia during August was diverted from the class strife outside her borders by new charges against the followers of Leon Trotsky who were implicated in the assassination of Kiroff in 1934. Following their trials, in which nearly all the accused confessed their guilt, sixteen of these “old Bolsheviki” received the death sentence and were executed within three days. Chief among the culprits were Gregory Zinovieff, former head of the Third International, and Leon Kameneff, the brother-in-law of Trotsky. In Norway, Trotsky himself was placed in strict internment by the Norwegian government, upon his refusal to accept limitations on his activities.
Greek Dictatorship. —Forestalling a 24-hour general strike in Greece, and the alleged danger of a communistic upheaval after the model of Spain, Premier John Metaxas on August 5 persuaded King George to dissolve Parliament, suspend constitutional rights, forbid political party activities, and acquiesce in a form of government more or less of the familiar fascist type. In his acceptance of the change, the King’s hand was apparently forced by the Army; Greek political leaders of all factions protested against it as uncalled for and contrary to the King’s pledges on taking the throne. Metaxas himself, the ablest survivor in Greek politics since the death of Kondylis and Venizelos, received a military education in Germany, and during the World War worked to league Greece with the Central Powers. Recently he agreed to cancel Greek credits in Berlin by the purchase of thirteen and a half million dollars worth of munitions.
UNITED STATES AND LATIN AMERICA
Chaco Powers Resume Relations. — Resumption of diplomatic relations between Bolivia and Paraguay was brought into effect by a formal agreement signed at Buenos Aires on August 24, with the additional signatures of representatives of the six mediating nations—Argentina, Brazil, Chile, Peru, Uruguay, and the United States. The agreement settled also a troublesome dispute over the repatriation of war prisoners, in which Bolivia complained that of an estimated number of 23,000 Bolivians held by the enemy some 6,000 had been kept in Paraguay for forced labor. Another clause of the agreement permits Bolivia to open a road between her Chaco headquarters at Villa Montes and the rich province of Santa Clara de la Sierra. Reopening of legations was expected before the Pan-American peace conference meets on December 1 at Buenos Aires.
German-American Trade Moves. — Negotiations for settlement of trade difficulties between Germany and the United States resulted early in August in a decision on the part of Germany to discontinue the system of payment in barter or “aski” marks which has operated as an indirect subsidy on German exports to this country. The United States thereupon made corresponding reductions in the
countervailing duties which had been placed on German goods. While this may have some beneficial effect on mutual trade relations, experts are of the opinion that there can be no real revival of German-American commerce unless a new trade treaty is negotiated to take the place of the pact abrogated by Germany a year ago.
FAR EAST
Pacific Relations Conference. —The Institute of Pacific Relations, a nonpolitical international association which includes representation from all the nations with interests in the Pacific, held its sixth general conference at Yosemite National Park from August 14 to August 29. For this meeting the American Council of the Institute prepared a number of special pamphlets, including two by W. W. Lockwood on Trade Rivalry between the United States and Japan and The Foreign Trade Policy of the United States, and another by J. R. Stewart on Manchuria Since 1931.
During the sessions of the conference Japan’s foreign policies came in for much criticism. Mr. A. V. Alexander, former British First Lord of the Admiralty, warned Japan that her aggressive trade policy coupled with militaristic imperialism might force a combination of nations against her, such as Germany faced in 1914. Mr. Alexander remarked:
I would say to our Japanese friends that if their objective is purely to raise the standard of life of the Japanese people I am certain that we would be able to arrange conciliation and trade agreements, and generally come to a satisfactory conclusion.
On the other hand, if there is an imperialistic motive behind it, I feel that it would be well for them to be warned that there is very great danger in that. Other nations may allow such policy to go so far, but when it becomes a real menace they combine to remove the menace, as we have seen in modern history. We do not wish to see Japan, already in far too lonely a position, put in that danger.
M. Albert Sarraut, former French Premier, also warned Japan against “education of her people in hatred of their neighbors and a mystical belief in war as inevitable.”
While Japan was criticized as the chief opponent of Chinese progress and unification, the Japanese delegates maintained that, on the contrary, Japanese policy would preserve peace in the Orient and develop China as a better market for all nations. Her delegation, which was headed by former Foreign Minister Kenkichi Yoshizawa, declared also that Japan was ready to join the United States and Britain in a treaty guaranteeing the independence of the Philippines.
In a general review of Chinese foreign relations during the past five years, published by the Foreign Policy Association on August 1, Mr. T. A. Bisson reaches the conclusion that only Anglo-American- Soviet support of the Chinese Nationalists can prevent war. He writes:
Both on the internal and international fronts, the struggle in China is clearly approaching a climax. The Soviet Union’s mutual assistance pact with Outer Mongolia has established a wall of defense along the frontiers of “Manchukuo” which can be breached only at the risk of war. South of the Great Wall, Japan’s steady political and economic penetration has already touched the nerve centers of British and American interests in China. Unified action by the Soviet Union, Britain, and the United States, in the face of this common threat, has still not been achieved. Under these conditions, the forces which impel Japan along the path of “manifest destiny” are shaping the outlines of an ultimate clash with one or another of its major opponents. At the present time, the Chinese nationalist movement constitutes the most powerful barrier to Japan’s advance. The growing strength of this movement, supplemented by concerted Anglo-American- Soviet action, holds out perhaps the last remaining possibility of halting Japan and enforcing a settlement that may yet check the drift toward war in the Far East.
Kwangsi Surrender Terms. —While strengthening the government military forces in Southern China, General Chiang Kai-shek continued during August his policy of seeking a peaceful settlement with the Kwangsi rebel leaders. The surrender terms of the latter, as reported on August 24, called not only for safety and rewards for themselves but also for a general declaration of war on Japan. Such terms, however, would surely prove quite unacceptable to General Chiang.
Japan in North China. —Reports from Japan in August indicated that Tokyo, far from satisfied with the present hybrid political organization in North China, was making ready to establish in the five northern provinces a new set-up, wholly divorced from Nanking. This, Japanese officials stated, must be brought about before Japanese capital could be invested and the region subjected to more complete economic exploitation. It was also essential to the establishment of cordial relations between North China and an “independent” Manchukuo.
According to the Japanese newspaper Asaki, Tokyo is also seeking in London an adjustment of trade relations on the basis of the new situation in the Orient. Britain was represented as willing to recognize Manchukuo in return for Japanese reaffirmation of China’s territorial integrity, the “Open Door,” and respect for British interests in China. For Japan, however, this was not good enough. She insists that the Nine Power Treaty is dead, and that the Western powers must accept Japan’s special position in China. As stated by Kazue Kuwashima, Chief of the East Asia branch of the Foreign Office, “Japan and China must in future be united in the relation of mutual existence,” which might be interpreted in plainer language as a China-Manchukuo-Japan coalition of 500,000,000 people controlled by Japan.