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While the staffs of Dictator Hitler and Count Ciano busied themselves drafting a further public announcement, Der Führer said good-by to the Foreign Minister and he was driven to Munich ("The Capital of the National Socialist Movement") for afternoon parades and evening torchlight demonstrations. Son-in-law Ciano laid a wreath on the steps of the Heroes' Temple in which are buried Storm Troopers killed in bloody German street brawls before the Nazis came to power. He laid another wreath on the monument marking the spot on which Government machine guns in 1923 opened fire on the "Beer Hall Putsch" followers of General Erich Ludendorff who marched on unscathed and Corporal Adolf Hitler who flung himself upon the ground, later escaped slightly wounded, only to be arrested and held for eight months in a fortress while he wrote Mein Kampf. In Munich, on this Nazi-hallowed ground, pink-cheeked Hitler Youths saluted Count Ciano and pink-cheeked Hitler Maidens offered him posies. Then with all Munich in carnival mood there was rollicking in the torchlit streets. Initialed Entente-Count Ciano, just before taking off from Munich for Rome, joined Baron von Neurath in handing out the text of an entente which they had initialed for Italy and Germany to signalize agreement last week on these points:
1) Germany, in return for recognizing Italy's conquest of Ethiopia, is to receive trade concessions in the Empire.
2) Germany and Italy will pursue toward the League of Nations a common policy, presumably hostile.
3) Italy and Germany, while not actually breaking off relations with the Radical Madrid Government, agreed last week that the White Government whose troops were advancing on the capital "enjoys the firm support of the Spanish people in the majority of the provinces. . . ." Thus Rome and Berlin hinted their intention to recognize the Whites as the government of Spain as soon as Madrid should fall.
4) Germany obtains Italian support for her contention that Russia should be excluded from the drafting of a new Locarno Pact by Britain, Italy, France and Germany only. Belgium, which has just resumed her historic Neutrality, would also be left out; France would be virtually detached from her alliance with Russia; and the "New Locarno" would be a great step toward setting up the hierarchy envisioned by Il Duce's Four Power Pact.
5) In the Danube countries, Germany and Italy will pursue their present economic and political expansion (TIME, July 20) with an effort not to interfere with each other's schemes.
This week Premier Milan Stoyadinovich of Yugoslavia was reported so "frightened" by the Hitler-Ciano accord that he was about to throw over his country's close ties with France and recognize Italy's conquest of Ethiopia. Since Yugoslavia is the "historic foe" of Italy, such news from Belgrade rang like victory in Rome.
*Hitherto only Austria had extended formal recognition. Hungary has given de facto recognition by extending to the Italian Empire the benefit of her trade treaties with the Italian Kingdom. Turkey has withdrawn her Legation from Addis Ababa, placing its affairs in the hands of the Italian Viceroy.