The Four Powers and the Five States
The case for preliminary action by the four Powers lies in the fact that both Germany and Italy are essential markets for the produce of the Danubian States. To .that extent their support for the scheme is indispensable.
• To cut down tariff barriers in the Danubian area to lower levels would result in some increase of trade between the States in that area, but they produce as a whole far more grain than they consume, .and the only way to help them effectually is to secure an outlet for the surplus at remu- nerative prices. If Germany and Italy give their support to the scheme in that form, and this country and France will back loans to enable the most impecunious of the States to tide over immediate necessities, a plan of appreciable economic and political value may be evolved. But if Germany and Italy demand in return preferences for their industrial products in the Danubian markets, or Germany opposes the scheme because it May reduce Austria's dependence on her and make-the achievement of the -ilaschluss more remote, or tliis country makes dilliculties (in the interests of the DdminionS). abOut` a preference for Danubian grain in GerMany and Italy, then the hopes raised by the negotiations of the past
fortnight will inevitably be ,dashed.-.„ Hence the obvious . wisdom: -of. preliminary discussions between : the.: four Great Powers.: * * *
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