New Deal?

The diplomatic ace of France, scholarly but dapper and cosmopolitan Andre Franc,ois-Poncet, who was once professor of German at the Ecole Normale, later French Ambassador to Nazi Germany and now to Fascist Italy, last week hurried from Paris to Rome. On him were the eyes of the chancelleries of Europe. He was said to carry to Benito Mussolini from Edouard Daladier a generous basis for adjustment of the outstanding claims of Italy against France--claims which just 13 months ago were voiced in the Italian Chamber with raucous shouts of "Tunisia! Corsica! Nice!" (TIME, Dec. 12, 1938).

During this hubbub the French Ambassador remained grimly seated in the Diplomatic Gallery, and afterward he strongly remonstrated with Count Ciano; but all the same, secret negotiations began. Last week M. Franc,ois-Poncet was back from Paris with these reputed offers: 1) Djibouti, the French Red Sea terminus of Italian Ethiopia's only railway, to be leased to Italy for 90 years; 2) Italy to be allowed to purchase an increased share in the closely held stock of the Suez Canal Co. to insure lower rates for Italian shipping through the Canal, main water route to Ethiopia; 3) Italians in French Tunisia, who are almost as numerous as Frenchmen, to receive increased rights and civic status.

What is Italy to offer France in exchange for such plums? This was naturally kept a close secret by both parties, since it can only relate to Italian moves favorable to the Allies, and therefore displeasing to the Nazis and Russians. Italian public and official opinion follows the Church in its fear lest either Naziism or Communism or both be carried violently into the Balkans or Near East in the next few months. This the Allies must try to stop, and II Duce is resolved to trade on the "nuisance value" of the Italian Navy and Air Force.

Past Italy almost every day sail French supply ships for Syria. Premier Daladier has taken off the retired list and sent to Syria famed General Maxime Weygand, who in 1920 helped the Poles to crush the Red Army offensive against Warsaw. Under General Weygand in Syria today is a French Army of some 20 divisions, with which he may help Turkey or Rumania as he once helped Poland. But the Italian Navy and Air Force could harry the flow of French munitions, troops and supplies for Syria--not that the Italian people would wish these cut off. Presumably, M. Andre Franc,ois-Poncet was preparing the ground with the horse-trading Duce for a more or less secret Allied understanding with Italy.

Last week the British press, constantly grasping at peace straws, again rumored that German overtures may soon be made via Italy to the Allies. There was no confirmation of this in Rome, where II Duce received last week Nazi Gestapo Chief Heinrich Himmler. Herr Himmler was said to have received from Premier Mussolini a "personal message" for Chancellor Hitler, but the Gestapo chief busied himself mainly about technical aspects of the option now being exercised by inhabitants of the Italian Tyrol of choosing on or before Dec. 31 whether to remain Italian subjects or be transported free to Germany.

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