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Northern Union. Last week Sweden was having an industrial boom under a rush of orders from Germany and Russia. But Germany was paying in 40¢-marks and Russia in overvalued rubles, and so Sweden's boom was only a stepping stone toward a lower standard of living. Trapped on three sides by Germany and with only weak, war-torn Finland on her other side, Sweden was already safely within the German orbit. Though she might turn in desperation to Russia, Russia did not have the strength to save her. In Hitler's Europe her destiny seemed to be that of straw boss of Scandinavia. As such Sweden would be a reasonably strong satellite which might be useful in holding Germany's left flank when the time came for the push to the east.
To the East. There will be an alliance of . . . Hungary, the Balkan States, the Ukraine, the Volga Basin, Georgia.—Hitler to Rauschning.
Last week Budapest denied that its Government had agreed to permit passage of German troops through Hungary in exchange for Slovakia, Transylvania and the Yugoslav part of the Banat. Nobody took the denial at face value. Germany is itching to double Rumanian grain production through mechanization, could offer Magyar noblemen their confiscated Transylvanian estates in exchange for the right to organize them. A strong—but not too strong—Hungary could rule much of the rowdy Balkans for Germany. With hegemony over the Danube Basin, Germany would have the southern hook of her pincers around the part of Russia she covets.
Rumania was on edge all week. Iron Guard Leader Horea Sima, armed to the teeth, was caught at the frontier returning from Berlin, but a dozen of his henchmen escaped. Three days later King Carol decided not to make a public appearance on the tenth anniversary of his return. Rumania was fully mobilized, waiting for war or a coup as soon as Germany could spare troops from the west. In Cernauti (pronounced Chair-nuh-oot'), on the frontier of what used to be Poland. Ukrainian nationalists, financed by Germany, again demanded separation from Russia. But the fact that Berlin brought pressure to bear on Slovakia to oust Magyar-hating Sano Mach as leader of the Hlinka Guard was a sign that Germany did not want trouble in the Balkans—yet.
Italy Ready. Italy's future must always lie in a development centered in the Mediterranean Basin.—Mein Kampf.