ITALY: Fiume

The tension between Italy and Yugo-Slavia over Fiume (TIME, Sept. 3, Sept. 24) slackened considerably, and negotiations between the two countries were reported as proceeding smoothly.

The latest proposals emanating from Italy were that Italy be allowed to annex Italian Fiume, in return for which Italy would allow Yugoslavia to annex the Slav section of the Free State. It is suggested that the administration of the ports of Fiume and Porto Barros shall be under a single mixed commission. It is understood that Signor Mussolini, Italian Premier, made urgent representations to M. Pashitch, Yugoslavian Premier, that the whole question of Fiume be settled once and for all, pointing out that the ports had been inactive since the end of the War and that all the commerce, which at one time centered in those ports, had been diverted to other parts of the world.

Premier Pashitch is believed to be willing to accept the Italian proposals. He is, however, in a different position from Signor Mussolini. The Italian Premier enjoys almost universal popularity in Italy, but the Yugo-Slavian Government is in a shaky position, owing chiefly to the hostility of the Croats. Thus the chances of an immediate settlement are considered somewhat tenuous.

In Fiume itself, conditions were quiet, the only notable event being the expulsion of 4,000 unemployed by order of the new Military Governor, the Italian General Gaetano Giardino. This was done in order to save money. No citizens of Fiume were expelled.