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. NEW- PACTS MAY RENEW - OLD BALANCE OF POWER Italian, German and Russian Treaties Seen Inspired as Move Against French Ambition. BY RAYMOND LESLIE BUELL, Research Director, Foreign Policy Association. URING the last few weeks fears have increased that a new sys- tem of opposing alliances is coming into existence in Eu- rope. Such a system was one of the causes of the World War: unless 1t is scotched, such a system will be the cause of a war in the future. ‘The peace treaties of 1919-20 divided Europe (outside of Russia) into two camps—the camp of the victorious al- lies, led by France, and the camp of the defeated powers—consisting of Ger- many, Austria, Hungary, Bulgaria' and ‘Turkey. Within the camp of the de- feated powers, the demand for a re- vision of the peace treaties has become more and more vocal. What is more, the past unity of the allied camp has disappeared. As early as 1928 Fascist Italy deserted the status 0 program of France and came out for a revision of the Hungarian fron- tiers. In his famous speech of October 27, 1930, Mussolini declared: “Our pol- icy of revision of the treaties . . . aims at avoiding war. The revision of the peace treaties is not prevailingly of Itallan interest, but interests the whole world.” Says Italy Acts in Self-Interest. Coremny and, Hingary, Sialy 1 acting an lungary, ly is ac in self-interest. Italy wishes more ter- ritory for its surplus ropum.lon; she demands a position of equality with | France—she demands that the French | haglun:ny over Europe come to an end. | pted by such motives, Italy | made a treaty of arbitration and con- ciliation with Germany in December, 1926, and a similar agreement with Hungary in April, 1927. In May, 1928, Italy buried the historic differences with | Turkey in a treaty of neutrality and | conciliation. ‘The fact that the Austrian Tyrol had been ceded to Italy in the peace treaties for a time was an obstacle to an agree- ment with Austria. But with the ad- virtually the whole of Europe became involved in the World War, and if an- other war comes the whole world will become similarly involved. The evil of the alliance system, however, is that it increases the prospect that a given dis- pute will lead to war. Today if one excepts the Saar there are no terri- torial disputes between France and Germany, and there are few concrete disputes between France and Italy. Nevertheless, as a result of the al- liance system, the controversies between France and Germany and between France and Italy, far from being local- ized, have been enlarged to cover the entire continent. The difficulty of find- ing a peacetul solution for a dispute, say, between Bulgaria and Jugoslavia, is greatly increased if Jugoslavia is bound by alliance to France and Bul- garia to Italy. These new alllances have been de- | fended on the ground that they merely supplant the League of Nations system —that is, the aid of an alllance will not be invoked by a party until after| the League of Nations has failed to solve a_controversy by peaceful means. From the legal standpoint this view of the post-war alliance may be correct. Sees Gulf Between Two Views. Politically, however, there is a fun- damental gulf ketween the alliance and the League principles. The balance of power principle regards nations as di- vided in fundamentally antagonistic groups. It looks upon all international disputes in the light of this principle— it views any solution of a dispute as advancing the interests of one group against another. In contrast, the League conference principle regards nations as belonging to one co-operative community, and it believes that disputes between nations may be solved upon the basis of justice without doing injury to the ultimate interests of any single power. Tech- nically, alliances may come into opera- tion only after the outbreak of war; but actually they dominate the peace- vent of Herr Schober as head of the| Austrian government in September, | 1929, and the growth of Fascist untl-“ ment in Austria, there has been an im- | February, 3 and arbitration between these govern- ments was signed at Rome. ‘The marriage last October of Princess Giovanna, daughter of the King and Queen of Italy, to King Boris III of "Bul- garia was obviously of diplomatic im- rtance. This agreement may pave e way for a political understanding between Italy and the last of the de- feated powers. So far as the published terms reveal, Italy has not actually concluded any | e | agreements have been concluded for a | common political purpose, and France | and her ‘:léle; -uspe:t um“ theyl are accom, y secret terms providing for Ng?)nrocfl military aid. i ‘While this shift in Italian policy away | from the allies and toward the former | Central Powers has been confined so| far largely to words, nevertheless, a | shift has taken place which threatens to disturb the equilibrium of Europe established in 1919. A second power to ufidm weight on ‘Turkey. Last September Dr. Tewfik Rushdi Bey, foreign minister of Turkey, visited Moscow, where he was given an Especial meutrality treaty with Hungary in Jan- uary, 1929, Turkey and Hungary, ra- cially related powers, have been on cor- dial .~ And the recent visit of Count Bethlen, Whliml mmlnutzr uld:l!ul:' gary to Angora, has been regar y some observers as the first step in the reconciliation of anti-Communist Hun- At the "hry commission for ok n Sy, ot £ gate, M. Litvinoff, has repeatedly sup- the German thesis of immediate disarmament—a policy which has led Prench critics to suspect a German- Russian understanding. And in the midst of the last session of the pre- paratory commission, M. Litvinoff sud-| dently departed for Milan, where he en- gaged in secret conversations with M. Grandi, the Italian minister for foreign affairs. Following this interview, the Popolo d'ltalia_declared that the “specter of an Italian-German-Russian bloc has arisen with an imposing reality.” To this bloc may be added a Greeco- -Bulgar-Magyar _group. The union of 300,000,000 mdlv&dual; Mving under these seven governmen “would give serious cause for thought to badly intentioned persons.” Paris Fears Oriental Bloc. Tt is significant that neither Germany nor Italy has joined the outcry against the so-called dumping policy of the Soviet ernment. The fear of an “Oriental alliance,” consisting of the three great powers of Russia, Italy and Germany, together with lesser powers in the Balksns, is now haunting cer- tain circles in Prance. 1f this Oriental bloc comes into existence, it will be due in a sense to ‘the policy of the French government. For it was France which took the lead | st the conclusion of the World War in resurrecting the alliance system. It was the hope of the authors of the covenant that the League of Nations’ conference system would displace thp‘ discredited principle of balance of | wer. w!!naer this theory disputes arising between nations should be settled uvon their merits; nations should trust their security to arbitration and to sanc- tions enforced by the world against an aggressor state. But the withdrawal of the United States from Europe and the fact that the League was only| coming iInto existence, together with | other factors, led France to revive the | it tem. | = thgumm treaties gave France many | territorial and financial advantages | which she believed could be maintained only by a policy of force. In Septem- ber, 1920, Prance made a military al- lance with Belgium: in February, 1921, she made a similar alliance Wwith Meanwhile the states of Central , Czech , Rumania and via, had entered into a series of agreements establishing the little en- tente. The purpose of this entente was to prevent the return of the Haps- to Hungary and any_forceful slteration in the Central European peace settlement. ‘The interests of the little entente and of France in maintaining the Versailles quickly June, 1924, France signed with Czechoslovakia; in June, , France '-nd nulm entered into ent prom! mu- 30 I case of atiack. in Novem- , 1927, & similar convention was between France and Jugoslavia. has supplied many of her al- Nes with military missions and with financial credits. By means of such alliances Prance enjoys a hegemony over Europe. It is this hegemony that Russia wish Germany, Italy and to overthrow. If one surveys the continent of Eu- find that the nations the World extent to perhaps Mprdm time diplomacy of the parties to the al- liances, and thus aggravate interna- tional controversies. One illustration of the baneful oper- ations of the new alliance system may be found in the minority system. At the peace conference Poland and the states of Central Europe were required to sign _treaties protecting minorities within their borders. The object of these treaties was to prevent a type of persecution that had been one of the auses of the last war. Under the best of circumstances, the enforcement of the minority treaties, for which the League Council is respon- sible, would have been difficult. But the difficulty has been increased by the nce system. France is allied to the principal powers having minority obli- | gations, and these powers know that because of their alliance France is inevitably put into the position of de- fending them at the League Council. Consequently they have not felt obliged to observe the minority treaties as they would have been in case France were in a position to look at the mi- norities question from an objective point of view. Fortunately new alignments are com- ing into existence in Europe that strike at the heart of the alliance system. In some cases treaties of friendship between two powers have been over- laid by a new treaty with a potential rival. Thus Turkey concluded a treaty of friendship with France in February, 1930, following its agreement with Italy. Moreover, in 1930 five conferences of European agrarian states were held for , | the purpose of arriving at agreement upon common economic problems. It is significent that these confrrences in- cluded not only the little entente ! countries, but also the former enemy powers of Bulgaria and Hungary. The presence of M. Flandin as “observer” at the second Bucharest conference in- dicates that France is attempting to in- fluence this development. Because of its gold supply, France is in a position to grant liberal agricul- tural credits to Eastern European coun- tries. Nevertheless once the agrarian states of Europe establish their inde- pendence from the industrial countries of Prance, Italy, Germany and Britain, it is unlikely that they will submit to any form of outside political advice. A second movement cutting across the old-style alliances has recently arisen in the Balkans. In October, 1930, a Balkan confersnce was convened at Athens under the auspices of the In- ternational Bureau of Peace. The con- ference was entirely unofficial; never. theless it laid the basis for co-opera. tion among countries which had for- merely been antagonistic. ‘The Balkan conference was followed by a remarkable diplomatic achieve- ment—the conclusion of a treaty for arbitration and naval limitation be- tween Greece and Turkey. Eight years ago Greece wished to annex Constanti- nople and Asia Minor. The conclusion of this agreement of October 30, 1930, between M. Venizelos and Mustapha Kemal indicates that this old period o;dlnfeslve hostility has come to an end. Treaty Bars Navy Race. In the naval limitation protocol the two parties promise not to lay down any new war vessels without advising the other six months in advance in order that the two governments, by means of a friendly exchange of views, | may prevent a race in armaments. This type of agreement may serve as a basis for a Franco-Italian accord. In view of the past friendship be- | tween Bulgaria and Turkey, the con- clusion of the October agreement has paved the way for an understanding between Greece and Bulgaria. If these two powers, together with Turkey, can effect a re-approachment, the hope for Balkan peace will be measureably in- creased Anxicty over this area will mot be removed, however, until the problem of Macedonia, which has embittered par- | ticulariy the relations of Bulgaria and Jugoslavia, has been solved. Already one or two agreements with this ob- Ject have been concluded and it is hop-d that the new atmosphere cre- ated by the first Balkan conference :J;my lead to a more fundamental solu- on. For generations the Balkans have been the birthplace of European wars, Russia and Germany fought for su- premacy in this area before 1914. Within recent years France and Italy have been engaged in a similar strug- gle. If the outside world will let the Balkans alone, it is not improbable that they will solve their own diffi- culties, and thus deal a vital blow at the whole system of alliances in, which the Balkans have been enmeshed. Pundamentally, however, the corrcc- tive lies in strengthening the League of Nations system of arbitration and conference—a systtm where interna- tional disputes are not examined in the light of alliances but upon their merits, . |and with a desire to advance the inter- ests of the world as a whole. Divorce Wave Follows Rumanian Job Cutting ‘The ax has fallen in Rumania with a new government decree ordering a 22 per cent budget cut. On: of the provi- sions of the decree hits married couples in government service. It orders the husband (or wife) with the higher sal- ary to immediate layoff. This has ult—an increase a curious res: in divorce! No fewer than 1,800 couples brought suit for di month, PASSFIELD’S PALESTINE WHITE PAPER ATTACKED The New Prophets Science Looks Into the Universe for Glimpse of Future of Cosmos BY THOMAS R. HENRY. CIENCE looks into the future. Its prophets stand on the moun- fleeting glimpses through the clouds of the vast confusion of an infinite succession of tomorrows. Some of these prophecies were voiced | before the American Association for the Advancement_of Science at Cleveland last week. The seers looked far with the telescope of exact, objective ob- servation, and further 'still when the landscape beyond was illuminated with lightning flashes of intuition. Foremost among the prophets stands Dr. Robert A. Millikan. Few men liv- ing have penetrated so deeply into the intricate mechanism of that super- machine—creation. But is it merely a machine—funda- | mentally no different, for all its far- flung universes, from the toy tractor which Santa Claus left under the tree | Christmas eve. The child winds up his toy with & key, thereby putting into it a supply of energy, and it moves across the floor until this energy is exhausted. Then it stops and cannot move again until more energy is put into it. Such, by law inexorable and eternal, is the fate of every machine. There is no iperpetual motion—either for toys or j creations. There is no eternal life in mechanics and there is no natural res- surection. = The machine—whether it be made of metal or star dust or protoplasm—can do no more than ex- pand the energy that is given it. So says the seconda law of thermo- dynamics, a8 it is applied to the uni- verse. Heat always passes from a hotter bedy to a colder one. There are no conditions whatever under which it will a lower temperature to a higher. Con- sequently, say the mathematical as- | tronomers—speciffically Sir Arthur Ed- long sweep of time the heat energy of | the universe will eventually become equally distributed through all the {’natdter dm the universe and creation will | e dead. law of thermodynamics. But Dr. Millikan takes a different view. There is a difference, he holds, between the cosmos and other machines. For the last dozen years the man whose magical ingenuity first isolated the electron has been studying a strange sort of radiation, of a wave-length far shorter than the shortest of X-rays, which is bombarding the earth from space. It wiil go through six feet of lead. It is the same at all hours and in all places. Obviously it does not come from the sun for it is as great by night as by day. It might come from the stars—but Dr. Millikan’s mathematical analysis does not lead him to think so. It 4s born, he believes, in the vast reaches of space—and how? Every luminous body is sending out BY HENRY W. BUNN. HE following is a brief summary of the most important news of the world for the seven days ended January 3,-1931: * k£ X GREAT BRITAIN.—As the year drew toward its close Britain faced the possibility of great strikes in two major industries—coal mining and cotton tex- tiles. For some time merely temporary agreements had governed in the coal- mining industry, and that for the South Wales fields, which employ about 150,- 000 miners, was due to lapse at the year’s end. The other day a general stoppage was averted through reluctant acceptance by the miners of the “spread- over” system, the wage question being referred to negotiation, with no present reductions. The owners continued in- sistent on wage reductions correspond- ent to reduction of working hours; the. miners would not hear thereto. At the last moment government officials rush- ed to the mine fields. But intervention was vain; neither side would budge. As the New Year was rung in the strike order went out. However, fresh negotiations now in progress seem to offer good prospect of a settlement. A long strike would be { terrible, indeed. The safety men con- tinue at their posts. My understanding is that the Lan- cashire mill owners propose that the workers shall be required to operate six, eight or ten looms (at the owners’ dis- cretion), instead of the present maxi- mum of four; on & new wage basis, to be sure, but mot, presumably corre- spondent to the addition in number of looms. Some 200,000 workers are in- volved, the old agreement expiring yes- terday. Thz total of registered unemployment on December 22 last was about 2,408.- 000, having increased by 109,000 within seven days. The figyre at the be- ginning of 1930 was about 1,303.000. During 1930 exports fell off about 20 per cent in the comparison with 1929; imports 14 per cent; taxation rates were increased in the course of the year, yel revenues sadly fell off; a serious budget deficit impends. o All .the major industries—textiles, iron and steel, coal, engineering in sun- dry sorts, shipbuilding—slumped sadly throughout the year because of the de- cline of exports; major causes of the lat- ter being the depression in this caun- ry, the rather curious economic dislo- cations in Australia, the turmoil in China and the Indian developments, in- cluding anti-British boycotts. Agriculture, so long neglected, had its worst year of several decades. The government promises remedial legisla- tion, but its tentative proposals in that sense are not very promising. The 1930 achievement of the Labor government in the foreign, common- weelth and imperial flelds, was none too satisfactory. The London Naval Conference—I leave appraisal of that to others. The Egyptian negotiations broke down completely. As to Palesting —*“Paucas Palabras” is the word. Brit- ish participation at Geneva was unim- pressive, to put it sweetly. The imperial conference was a flasco in an almost incredible degree. The round-table con- ference on India may turn out a suc- cess—Heaven knows that success is de- sirable, is necessary—but its few weeks’ record to date is not too reassuring. The coming session of Parliament promises to be a bit'er one: bitterest of all, perhaps, will be the fight over the bill proposing repeal of the trades dis- pute act. On the other side, it is reassuring to note that 1930 saw the opening of six new legitimate theaters in London (architecturally satisfactory, 'tis said), and that Sir James Jeans' book, “The Mysterious Universe,” has & tremendous sale. The opening in London of a great Persian art show strikes a vivid pic- turesque note. The New Year honor list includes 4 peers, 5 baronets and 30 British knights, while 20 knighthoods are dis- tributed among the dominions, India and the colonies. Among the new barons is Sir Ernest Rutherford, the great authority on radium: this being, it 1s said, almost the first peerage conferred for eminence in scientific re- search. It was about time, consider- ing the number of peen{u conferred for indifferent achievement in business, and literature. tains of experience and catch | pass of its own natural tendency from | dington and Sir James Jeans—in the | It is the blackest chapter in | all the books of prophecy—that second | DR. ROBERT radiation—heat, light of the visible spectrum, and the shorter ultra-violet and X-rays that are beyond the range | of the human eye. This means, accord- ing to the physical law of the funda- mental identity of energy and matter, | that, since radiation is energy, luminous bodies are dissolying into light. Given | time enouflh and there will be no sun left. It will be scattered through space in dight. It's substance will have re- | turned again to the void of space-time | out of which it was created. Some day |all the countless billions of suns wiil | have gone into the everlasting nothing- | ness. “The cold hand of death, reach- |ing out of the void. is upon them. Every motion of living is a part of dying. Norman Angell is among the new knights and Willmott H, Lewis, Wash- iny correspondent of the London ‘Times, was created a knight commander of the Order of the British Empire. Lord Melchett, the great British in- dustrial leader, is dead at 63. He was chajrman of Brunner Mond & Co., Ltd., and of Imperial Chemical Industries, Ltd., which great combination disposes of .capital to the tune of about $380,- 000,000. He was perhaps the guiding spirit in the formation of the National Council of Industry and Commerce, aimed at co-operative effort of capital and labor to find a way through the desperate maze. H: was educated at Cambridge and Edinburgh and for a short time in his early days practiced as a barrister. His father, Dr. Ludwig Mond, of a poor Jewish family in Cas- sel, Germany, went to England in 1862 and five years later was naturalized as a British subject. His lordship gave liberally of time and money to Zionism. He rendered impor- tant service in the war as commissioner of works, etc., and used his industrial power munificently. He was a fellow of the Royal Society and has been called “the British apostle of rational- ization.” His_ conversion in 1926 from | free-trade liberalism to conservatism | caused a great sensation. He was an ardent advocate of that policy con- EN years ago, in the midst of the depression of 1920-21, I made a talk before a thousand men representing one of the coun- try’s basic industries. For weeks they had heard nothing but bad news from their salesmen. Their only mail was cancellations. It was a tough assignment for a speaker. I showed these hopeless gentlemen a photograph of a vacant lot, a big corner, a couple of hundred feet square, gx ltéhe very center of New ork. I said to them: “Doesn’t it strike you as strange that here in the heart of the greatest city, where land is worth thousands of dollars a front foot, there should, be this vacapt lot?” They were only mildly in- terested, but I took a deep breath and ploughed ahead. “I'll tell you why that lot is vacant,” I continued. “It was part of a farm. Just a hun- dred years ago the farmer died; his will gave definite in- structions to his heirs. They were at liberty to do as they wished with his other prop- erty, but this particular cor- ner of his favorite pasture was _to remain forever unincum- bered with buildings as a rest- ing place for his bones and the bones of his wife. “Stop and think what this means,” I said to my down. hearted a “Only a A. MILLIKAN, But these cosmic rays of Dr. Milli- kan's—they don’t exactly fit into the pattern. Methematically it has been difficult to place them in the process of dying. They do not fit into the equa- | tions for the dissolving of matter. They fit much more closely, Dr, Millikan finds, into the requirements of a formula for the reintegration of energy into matter—into the birth of worlds rather than their death. The energy which leaks from the stars in the form of radiation, he finds reason to believe, is becoming matter again in the void of interstellar space—possibly forming the simplest of,all atoms, hy- drogen, which in turn Is built up into | more complex atoms—and into worlds, | stellar systems and universes. templating close economic relations | among the members of the British com- | monwealth of nations, of which Stanley Baldwin is the cr:ng l‘polmln. ; * FRANCE.—Marshal Joffre 4s dead. For a long time he suffered from an in- | lammation of the arteries of the lower | limbs, and on December 19 a sudden aggravation of the condition necessi- | tated amputation of the right foot. | Serious complications set in at once, | and the bulletins forbade hope. —But for six days the magnificent fighter fought off death wi characteristic obstinacy. He displayed that same quality of stoicism which was so im- portant and happy a feature of his con- duct of the supreme French command in the earlier days of the war, a quality almost as serviceable as the authentic genius of a Gallieni or a Foch. No doubt Gallieni was the genius of the first Marne, but, after all, it was Joffre who made the fateful decisions, and he will rightly go down as the supreme hero of the most important of battles. His “Don't worry” will ring through the corridors of time. Death came on the eve of his seventy-ninth birthday. Of the great countries France con- tinues least affected by the planetary depression. Forelgn trade has appre- ciably fallen off, and the domestic trade of 1930 was stagnant in comparison THE VACANT LOT- BY BRUCE BARTON hundred years ago . . . only a little more than one life- time this island was farms. Moreover, the people who lived on it assumed that it always would be farms. Now look at it—a city of 6,000,000 people. “Yet you men sit here in the midst of it and assume that because business has slowed up a little America is never. going to buy any more shoes, any more houses, any more automobiles. Don't be like the owner of that farm. The country which was pastures only three generations ago is going to continue to step ahead. This is the time to make plans for a bigger future.” ‘They looked at me as much as to say: “Here is a bright young man trying his best to cheer us up. But, of course, he doesn’t know what he is talk- ing about.” ‘The other day by a curious coincidence I was invited to address the same convention in the same hotel. I made the same speech. “You thought I was talking through my hat 10 years ago,” I said to them. “But just look at the last 10 years. Every man in this room has done more business than he would 111‘)&2\60" dreamed possible in I told them about the va- cant lot again. They looked Tande. - But I ‘Subpect ‘tha y a most. of qu:h nm that I was talking through my hat. ‘This is difficult to conceive if the lutely fihx;nffll. He S sol leat energy, precipi- tated into the vast cold of space, would tend to dissipate to nothing. ‘The cosmic_ray energy points to the oppo- site. Certainly this law holds for the earth and the stellar system, but per- haps it doesn’t hold for the outer limits of space itself. ‘The child, playing with the toy auto- mobile, is a divinity so far as that par- ticular mechanism is concerned. It dis- sipates its energy in motion and stops, in accordance with natural law, The child winds it up again and it repeats the process. But whose toy is creation? Who, in the face of the second law of thermodynamics, is winding it up again? That essentially is what the process of rebullding matter out of energy amounts to. “Here,” says Dr. Millikan, “perhaps is a bit of experimental finger pointing in ;hg direction of & Creator still on the job.” ‘The laws of mechanics hold for toy automobile and island universe. But outside the creation appreciable to the toy is a mysterious, all powerful force —an incarnation of that strange quality Life. In the universe of the nursery he is, above th aws of physics. Even so, In the universe of the nursery he is above the laws of physics. Even so, thinks Dr. Millikan, in the vastness of space and time is a force as far above finite comprehension as is the living child to lifeless molecules of the toy. * kK X Next among the prophets is Dr. Har- low Shapley, director of the Harvard Observatory, explorer of the farthest frontiers of space-time. He is the dis- coverer of universes and universes of universes on the borders of human sensory perception. It is only a few years since we all lived in a very small Creation—made up of only a few-score billion stars, of which the sun and its planetary system was one. It all seemed vast—too vast for the imagination to encompass. But now what a pitifully little thing it seems—this milky way galaxy. No more than a few specks of dust in the vastness of creation. It is but one unit in a community of galaxies which itself is only one among many communities. Mankind has from one of the little country of Creation to the big city—and a clumsy, gawky fellow he is as he stands staring at the tall build- ings. He is almost ashamed to admit that he comes from so insignificant a place—a veritable Squash Center of the cosmos. It is Dr. Shapley who has been dis- covering these new universes and great clusters of universes in wholesale lots. He has enlarged a million-fold the out- look of man. Peering down the vista of the infinite- ly little, Dr. Millikan finds hope and ressurection and God. Looking upon the infinitely great, Dr. Shapley proves (Continued on Fourth Page.) with 1929. Owing to the unprecedented poor pre: 's Was 8 per one), and the vintage was the it as to both quality and quantity of many years. The latest general index of in- dustrial production was 136, as against 141 & twelve-month back. Unemployment, though small in com- parison with other great countries, be- gins to be appreciable. But, all things considered, France is most fortunate. There is, indeed, something fantastic about her fiscal exuberance. The new year begins with the political situation obscure and rendered somewhat mias- matic by the Oustric financial scandals. The new left government holds on most us terms. Though com of Ld.‘ufindl on the votes unified , true-blue rip- snorters. The reactionary develn&mnm in Germany and the impossibility of accord with Mussolinian Italy have un- happily clouded the toward the millennium. * ok k% GERMANY.—German export held up better during 1930 than the export of any other great exporting country, the decline in value being less than 10 per cent, in volume less than four. Complacency on this head is tempered by the consideration that the holding up of export was not merely contrasted by depression of the home market, but was in no small measure attributable thereto. desperate cl f t | race and and left represent very popular reaction; but there is reason for confidence that the republic will continue to be safe ity recognition of the fact that inter- national credit is of supreme importance. A considerable flight of capital ensued upon the election returns, but much of it has returned. Import, of course, falling off greatly, there was for the year a hand- some favorable balance of foreign trade; all to the good from the viewpoint of reparations and that of international credit generally, if not in other aspects Justifying jocundity. Germany has now supplanted Great Britain in second place among ex- porting countries, the United States being first. ‘The new year opens gloomily enough for Germany, but ot as gloomily as for Great Britain, probably not l: iloomlly as for Italy. * * ITALY.—Our information from Italy is always meager, so one may not confidently estimate the d:gree of Italy’s share in the general slump, but I am inclined to think that Italy has suffered less than Germany, but that her position is more us. To be sure, the total of unemployed (around half a million), though about normally lnl’rze, is considerably below the German standard of living, enough, has been The | half as great' as that of 1920. improved, d imports have declined sadly, and the decline of import mostly attributable to the bumper wheat crop of 1929, while this year’s crop was poor, a fact that willin due course manifest itself unpleasantly in the snt has been sub- treaty. ‘The population ‘There of 920,000, is Rome is now about a greater a Its Text Is Called Misrepresentation of - Undertaking to v Set Up Jewish Homeland. NOTE.—The author of the following one of the tati o le at the Versaille of le at the Versailles Peace Conference and helped ing up the documents for the preserva- tion of Jewish rights in Palestine. He is at present consultant in negotiations to effect a withdrawal of the_polick outlined In the British White Paper o October 20, negotiations which still are under way. BY FELIX FRANKFURTER, Professor at Harvard Law School. EWISH longing for a renaissance of Jewish life in Palestine is of Turkish misrule. The creation of & legally Jewish homeland in Palestine entered the realm of inter- national politics as a result of the first Zionist Congress in le, August, 1897. And a long tradition of tolerance and -will toward the Jew made Great ritain the special hope of Jews in realizing the Zionist program. ‘The World War converged these dreams and hopes, and from the out- set Jews looked to the international fulfillment of their national long- ing as one of the consequences of the war. Barring the return of Belgian territory, no arrangement that came out of the war was more openly arrived at than the grovlslons for assuring the establishment of a Jewish national home in Palestine. Publicly, not secretly, with the con- sent of the allied powers and the ap- oval of the President of the United tes (subsequently approved by a unanimous Congress, and not by under- hand private bargaining, Great Britain signed the following bond and called the whole world to witness: Agreement by Britain. “His Majesty’s government view with favor the establishment in Palestine of a national home for the Jewish people, and will use their best endeavors to 550:!";:%“'{2; lcralevemenz of that ob- ject, understood that nof shall be done which may m!ud.\em civil and religious rights of existing non-Jewish communities in Palestine, or the rights and political status en- Jjoyed by Jews in any other country.” This is the famous Balfour declara- tion of November 2, 1917. The Zionist organization formally submitted = its program for establishing a Jewish na- tional home to the peace conference, in 1919, in terms which Emir Feisal, head of the Arab delegation, approved as “moderate.” The Balfour declaration and the program which it implied were intrusted for execution to Great Britain, as mandatory, by the allied ;:&;xz\;erence at San Remo on April 25, ‘The mandate did not recognize Great Britain as conqueror but as trustee for the world, and therefore the mandate was to be approved by the Council of the League of Nations. The council of the league did so approve the Pales- tine mandate on June 24, 1922, and it was officially recognized by the United States by convention with Great Brit- ain, signed December 3, 1924. Respect Arab Rights. ‘The mandate explicitly recited the Balfour declaration and charged the mandatory, Great Britain, with put- wifltl?weflm Tbulw:%:!d- leclaration made part ib- lic law of nations, and f.harebyp“t.he establishment of the ufihnmen became an international obliga- lands and non-Jews also dwelt in Pal- estine, out of an abundance of caution the Balfour declaration and the Pal- estine mandate put into words what in any event would have been clearly im- plied. The duty to facilitate the estah- lishment of a Jewish national home was not to affect the status of Jews in other lands, nor was it to prejudice “the civil and religious rights of exist- mi‘m non-Jewish communities in Pal- estine.” No one denies that the presence of an existing Arab population made the establishment of a Jewish national home more difficult than if Palestine had been wholly empty. But whatever the difficulty of the , it was assumed with open eyes and full knowl- edge of its complications. Dro- tection of the existing non-Jewish population was not intended to cancel the positive, creative obligation of the Balfour declaration as now written into international law. The obligation is clearly defined in the mandate. “The mandatory shall be responsible for placing the country under such po- litical, administrative and economic conditions as will secure the establish- ment of the Jewish national home, as laid down in the preamble, and the de- velopment of self-governing _institu- tions, and also for safeguarding the civil and religious rights of all the in- habitants of Palestine, ve of religion.” (Article 2.) View of Immigration. “An appropriate Jewish agency shall be recognized as a public body for the purpose of advising and co-operating with the administration of Palestine in such economic, social and other mat- ters as may affect the establishment of the Jewish national home and the in. terests of the Jewish population in Palestine, and, subject always to the control of the administration, to assist and take part in the development of the country.” (Article 4.) “The administration of Palestine, while ensuring that the rights and po- sition of other sections of the popula- tion are not prejudiced, shall facilitate Jewish immigration under suitable con- ditions and shall . encourage, in co- operation with the Jewish agency re- ferred to in article 4, close settlement by Jews on the land, including state lands and waste lands not required for public purposes.” (Article 6. *“The administration of Palestine shall take all necessary measures to safe- guard the interests of the community in connection with the development of the country and, subject to any inter- national obligations accepted by the mandatory, shall have full power to |also provide for public ownership and con- trol of any of the natural resources of the country or of the public works, services and utilities established or to be establisned therein. It shall intro- ‘There was more than the usual dependence on Since Jews dwelt also in other Bil duce s land faeisive cult intensive cultivation of the land. Public Works Considered. “The administration may 4 to construct or operate, um fair and equitable terms, any pul 3 works, services and utilities, and to de- velop any of the natural resources of the country, in so far as these matters are not directly undertaken by the ad- ministration. Any such arrangements ;hul yhmvldfi that no véol!" d’::rlbuud y such agency, directly or indirectly, shall exceed a reasonable rate of inter« est on the capital, and any further gerom.s shall be utilized by it for the nefit of the country in a manner ap- pfleld by the administration.” (Arti~ cle 11.) What is meant by “Jewish national home?” It has thus been explained by one authority: “A national home con- notes a territ in which a pefi without receiving the rights of poli sovereignty, has ne eless a recog- nized I ?onuon and receives the op- portunity of developing its moral, social and intellectual ideals.” The British government in 1922 thus defined the - conception: “. . When it is asked what is meant by the development of the Jewish na- * tional home in Palestine, it may be answered that it is not the imposition of a Jewish nationality upon the in- . habitants of Palestine as a whole, but the further development of the exist- ing Jewish community, with the assist- . ance of Jews in o parts of the world, in order that it may become & center in which the Jewish people as a whole may take, on grounds of re- ligion and race, an interest and a pride. There by Right. “But, in order that this community * should have the best prospect of free development and provide a full mvot- tunity for the Jewish people to flu its capacities, it is essential that it should know that it is in Palestine as of right and not on sufferance. That is the reason why it is necessary that the existence of a Jewish national home in Palestine should be internationally guaranteed that' it should be formally Trecognized to rest upon ancient historic | connection.” : If words are not meaningless, if a purpose expressed is not a sham, then the obligation of Great Britain under the mandate is to exert her en- , deavors toward the achievement of those elements of culture, c * and social life which we know as a nation. And a nation : and land on which they toil live. A national home for Jewish people in Palestine means wholly dif- ferent than individual and isolated Jews living as they had lived and might live in Poland or Rumania. A national home means civilized integration of a people or it means nothing. And with the aid of the Jews of the PR ] land. They have pout th: despoiled and nm!ecdted land. Above Sea. And all great benefit to the Arab masses thrive and multiply in contrast to brethran in neighboring Arab lands. Criticism of Regime. But the beneficent achievements of * the Jew have been misrepresent d the ‘British. administration. s faiied | ns > poor and illiterate hi & MAdANfGE $A TSR keeping Je immigratis propor- tionate to the country's capacity of 4 economic absorption, as clearing inti- mated in the White Paper of 1922. Thr ~ commission is inclined to ask whether the obligation to encourage close set- M tlement by the Jews on the land does - not—as a measure for the preservation | of social order and economic equilib- * rium—imply the adoption of a more active policy which would develop the , country’s capacity to receive and absorb ts in larger mi m,sm"' »'lthm 5 a policy seems to have been mmmmmmmm;:mu: em- eir cl against the . Palestine government, that it has net fulfilled, by actual deeds, the obliga- * tlon to encourage the establishment of the national home, :L‘r‘orfied hl};D the fact ent has shown itself unable to - vide the essential condition for "the ’ development of the Jewish nationa) e—security f _ ly for persons and prop. mwmt Program Executed. 1 1 commission ho that the necessity of contin p:.ctlnz as an ; umpire between the hostile factions, will not prevent the Palestine govern- ment from g to carry out a * constructive program in the interests ‘ :fo the penc’ezt;xl masses of the poj n more vigorously than hitherto.. It, entertains this hope not only because " such action is necessary for the com- * plete execution of the mandate, buf because it believes that there is.. no better means of bringing about general pacification than to encourage and organize in every possible way’ effective co-operation between the vari-s ous _sections of the population. . orders for the Army and Navy. Whereas | mands of the in 1929 supply to the services was only 32 per cent of that to commercial uses, in 1930 it was 75 per cent. On the other hand, the major air transport lines did more business than in 1929; ‘miles flown and pounds of mail carried about the same, but passen total- gers ing about 255,000, against 165,000 for 1929. ‘The total production throughout the world of the Ford Motor Co. in 1930 was abouf 1,500,000 cars and trucks, as u:‘%mm in l&‘ Thwa was _grea as P LI P * ok kK BOvV- t, by Harmodio Arias as provisional President, was established by a revolutionary junta. The dis- patches give the impression of a fan- tastic business g ties were 10 killeg,” United 8 e ‘more &) of the undeniable material advantages that Palestine has derived from the efforts of the Zionists. Moreover, by enhancing the moral authority of the mandatory government as the natural protector of the holy places, it would™ have enabled them to dispel the L hensions felt by the Arabs on account., of the intention which they attributed &mnmummumnmnu-' ... b ‘“The policy of the mandatory would not be fairly to criticism unless aimed at Jewiats mac! it of t' thet