1 DECEMBER 1939, Page 2

Rumania's Stronger Government

The change of Government in Rumania arises in the main from that country's determination to maintain her neutrality, and that is another way of saying her independence. M. Argetoianu's Government was being hard pressed under the exorbitant demands of the German trade delegation, and may have been somewhat handicapped in its resistance by a currency policy which tended to restrict trade with free- currency countries. The accession to power of M. Tatarescu with a Ministry formed on a wider basis indicates not so much a change of policy as a stronger policy based on the firm resolve not to commit Rumania's economy to Nazi domination. It is a normal and a natural thing that a large proportion of Rumania's foreign trade should be with Germany. But Dr. Clodius and his Nazi associates have been demanding much larger if not exclusive supplies, and these immediately, in return for which only deferred, and therefore obviously doubtful, payment was offered. It is even reported that they required the devaluation of the lei exchange rate in relation to the Reichsmark. But Rumania does not wish to sign away her economic freedom under economic or political pressure from Berlin, and has just signified her attitude by an exchange agreement with Egypt. But for a State near Germany to maintain neutrality in these days demands courage, not excluding the courage to strengthen armaments. The formation of M. Tatarescu's Government is a sign of Rumania's resolve not to barter away her freedom. It is unfortunate that the relatively friendly references made to Hungary by M. Gafencu, the Rumanian Foreign Minister, on Wednesday, evoked a sharp rejoinder from the Hungarian Foreign Minister, Count Csaky.