SITUATION IN MIDDLE EAST.

Taihape Daily Times, Volume XI, Issue 3443, 24 March 1920, Page 5

SITUATION IN MIDDLE EAST.

CAUSE FOR ANXIETY

Received 11.3 (1.111

(Imperial News Servlce.)

LONDON, March 23.

In “the House of Commons Mr Churchill said the situation in the Middle East was very anxious, but so far not so formidable in practice a.s it seemed in prospect. Nevertheless the situation is acute. As regards Mesopotamia there were three causes for anxiety. First, the Turkish Nationalist movement under the Miisiaphzt Kemal; secondly the Arabs who Had been disturbed in the occupation of Syria were now inclined for the first time in many ways to make common cause with the Turkish nationalists; thirdly, the Bolsheviks’ destruction of the anti-Bolshevik forces was proceeding to a very marked extent, and very soon the Bolshevik military power would extend over the Whole of the great region north of the Caucasus and beyond the Caspian, quite unchecked by any Russian forces.

[ DANGERS OF BOLSHEVISM IN k TURKEY. ~ ANXIETY REGARDING MESOI POTAMIA. . Received 12.5 a.m. ' LONDON, Jan. 22. Mr Churchill went on to say that ‘With the fall of the Caspian Sea. ‘which must occur when the ice of the Volga has meltdct, the Bolsheviks could descend the river. The Bolsheviks would then be in close touch with the doubtful Republic of A.nzerbaijan and the Republic of Georgia, also with the hostile forces under Mustapha Kela. On military grounds this junction was formidable. He, thought it probable the Bolsheviks, would use their advantage to spread; their propoganda as widely as pos-l sible rather than follow it up in ai strictly military sense. It, therefore, was obvious that the whole position‘ in the Middle East causes great anx-, iety, and requires the maintenance of} strong forces there. He hoped,‘ how-I ever, it would be possible to effect} economy in that theatre in course of i the year by holding Mesopotamia; primarily through the agency of the. air rather than by military forces. We could not continue holding the country and spending fifteen to twenty million yearly t.hel‘e'on. He saw no reason why British Statecraft should be bankrupt in Mesopotamia when it was so successful in other parts. He instanced the Sondan where there were four white battalions. He was not ‘prepared to propose that we should march about Meslopotamia holding the people down by military force; nor had he ever pretended when we reiceived the mandate we should imme[diately occupy and dominate every I square mile of the couirtry on the first day. Other methods must be devised lit We were to continue to keep Mesopotamia. He instanced the process‘ in West Africa, where British political influence gradually permeated the whole country and brought great areas under successful control. ’l‘h;;t was the line on which they were working now regarding Mesopotamia. Referring to Germany and the state of affairs there, he said events were causing the greatest anxiety from a military standpoint. It ought to be the policy of the Government, by all means in its power, to enable the Moderate German Government to ‘maintain itself as a living entity. lenabling under its aegis and under irs organisation‘ the productive activities and the prosperity of the German people to revive. U.S. LOANS TO ALLIES. PROPOSED REDUCTION OF INTEREST. I 1 WASHINGTON, March 21. Mr D. F. Houston, Secretary to the ‘Treasury, advocates reduction in the Erato of interest. on American loans to the Allies from 5 per cent to 4-1 per cent, and defernicnt of the payment ‘of interest for three years. He also suggests the conversion of loans into } bonds with a currency of twelve years, [deferred interest to be conipoundod.