The Daily News WEDNESDAY, AUGUST 2, 1922. THE NEAR EAST.

Taranaki Daily News, 2 August 1922, Page 4

The Daily News WEDNESDAY, AUGUST 2, 1922. THE NEAR EAST.

> Ever since the Armistice there I have been ominous signs of trou- > ble arising out of the unsatisfactory compromise that was made when dealing with Turkey. Unhappily the religious factor in the Turkish settlement affected India, and Britain felt it would be ex- ! tremely dangerous to increase the I troubles in India by appearing to I act harshly to Turkey. The com- ! promise of making a neutral zone, ' instead of thrusting the Turks out of Constantinople, was in its intent well-meaning, but iu reality , it proved of no service in bringing about a peaceful and abiding moI dus vivendi, for the reason that I Kemal Pasha rapidly raised a eonI siderable force, known as Kemalists, who practically defied the Allies and refused to be bound by the pact with Turkey. Before long these Kemalists made themselves a thorn in the side of Greece, and there followed open hostilities, in which the Kemalists eventually appeared to have the advantage. A recent cable message states it is impossible to over-estimate the importance of the new situation, in Thrace, and that, even if King Constantine’s threat to occupy Constantinople does not materialise, the events of the last few days re-emphasise clearly the volcanic character of Turco-Greek relations. There ean be no doubt that Greeks in Asia Minor have been massacred and otherwise badly treated by the Turks, but it is extremely likely that it has been a case of mutual petty warfare, rage and pillage, there being little, if anything, to choose between the, two sides. But for the Allies obligation to protect Constantinople and its sacred buildings, it might be as well to let the Turks and Greeks settle their differences in their own way, but that, of course, is out of the question. To allow the Greeks to occupy Constantinople is also unthinkable. There have already occurred conflicts between Greek patrols and Turkish .gendarmerie, the Greeks having crossed the neutral zone. Little reliance can be placed on the Greeks’ assurance that they will not attempt a coup in regard to Constantinople, in face of the fact that they have hurriedly withdrawn 25,000 troops from Angora to Rodoto, while the KemAlists are preparing, in the event of a Greek advance ou Constantinople, to meet them from Asia Minor. It will be seen that all the elements of a very unwelcome military conflict are present in this affair, but as Italy, France and Britain are in agreement as to the policy to be pursued, there does not appear to be any danger .as far as Constantinople is concerned. At the same time the Allies are taking no chances, but have ordered their forces to take up the necessary defensive positions in order to be ready to meet any emergency that may arise. Greek action in proclaiming Smyrna an autonomous State was an astute move, indicating their evacuation of that territory and placating both Moslems and Christians. It is doubtful, however, whether the results of such a manifest manoeuvre will come np to expectations.. Apparently the Greeks are spoiling for a fight, and have assumed a bombastic tone that will deceive no sane statesman. The warning has been given by the Allied Commandant (General Harrington) that any attempt to violate the neutrality of the occupied area will be resisted by force. This is no idle threat, but a clear enunciation as to what Greece must, expect if she lets her obsession outrun her reason. The fact that thirty British warships are assembled in the Bosphorus shows that preparations for an emergency are well in hand. Greece has much to lose and nothing to gain by starting in on a mad and hopeless campaign ag-ainst Constantinople. It may

appear to Greece as incomprehensible that Britain, after all she has .suffered from Turkish duplicity, should be found willing to become Turkey’s protector. That does not alter the fact, and though another war is just what Britain would turn from if possible, yet, having put her hand to the plough, there can be no turning back, and unless Greece realises this aspect of the situation, she will rue the day when her militancy and pique leads her to disaster. A LESSON TO DAIRY-FARMERS. In the course of his remarks to the Hawera Dairy Company shareholders on Saturday, the chairman (Mr. J. R. Corrigan) stated that it was the duty of all co-operative directorates to endeavour to put their companies in a good financial position, and not ro be so dependent upon the banks for their finance. Few who understand the position will dispute the soundness of Mr. Corrigan’s contention. In the past the aim of many of the co-operative dairy companies in Taranaki has been not to reduce their indebtedness to the banks, but to pay out the utmost farthing to suppliers, even when prices were very high and a reduction of a penny or twopence in the pay-out would scarcely have been felt. Warnings as to the advisability of putting their houses in order and getting out of debt fell on deaf ears. The time came, as was almost inevitable, when the banks, with diminishing resources, applied the screw, and reductions were asked for just when the companies were least prepared to comply. It is no use blaming the banks for what was considered harsh treatment. The companies themselves were to blame for allowing themselves to become so involved, and it is refreshing to notice that the fact is now being acknowledged by some of the foremost men at the head of the dairy companies. A prudent commercial business strengthens its finances and general posb tion when times good ; it gets out of debt as far as possible; it creates reserves and makes ample provision for depreciation, so that when the “rainy day” arrives it can successfully meet the position. Unfortunately, the competitive element has entered largely into the conduct of cooperative dairy companies in Taranaki—one contiguous to another, endeavoring to pay out more each season; but manifestly if a company had in the past followed a prudent course—paying off a proportion of its liabilities each year—it would be better prepared to meet competition, either from its neighbors or outside concerns, given, of course, efficient management. It is hoped Mr. Corrigan’s observations will not go unheeded. • Companies have had their lesson during the past year and should profit by it.