Serbs and Croats Last week the Yugoslav Prime Minister and
the Croat leader, Dr. Matchek, reached a " final agreement " in their discussions at Zagreb on the Serb-Croat problem. The agree- ment was believed to provide for autonomy for the Croats, the conversion of Yugoslavia into a federal State, and the formation of a new coalition Cabinet in Belgrade, possibly under the leadership of Dr. Matchek. Publication of the agreement was expected on April 28th, the birthday of the Regent, Prince Paul ; but it remains unpublished still. The delay has caused alarm, for a settlement of the Serb-Croat problem is urgently necessary if Yugoslavia is to present a united national front to the demands of the Axis Powers, each of which is endeavouring to exploit her political isola- tion. The delay is being attributed to Prince Paul, who may be alarmed by the extent of M. Tsvetkovitch's concessions to the Croats ; they on the other hand declare that the agree- ment represents their last word, and its withdrawal may create disorder at Zagreb. Such a situation can only increase the influences which impel Yugoslavia towards the Axis. After the return of the Foreign Minister, M. Markovitch, from Berlin last week, Germany is reported to have made certain economic demands, particularly for supplies of iron ore. No doubt they will form a main subject in the dis- cussions during Prince Paul's forthcoming visit to Berlin.
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