RUMANIA: Ultimatum

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"Aggrandizer" Hitler's empire expanded week to within about 75 miles of the rich oil fields and wheat lands of the Kingdom of Rumania. Scarcely had the Aggrandizer got to Vienna on his swing around the new empire before the Rumanian Minister in London, Viorel Teleas, reported to Foreign Secretary Lord Hali fax that Germany had served Rumania an "economic ultimatum." Its gist: trade all Rumanian oil and wheat for German manufactured goods or expect the consequences.

Rumanians well know the "consequences." German troops could either march in through the mountainous districts of the Carpatho-Ukraine seized by Hungary last week (see p. 20) or Germany could back Hungary in an attempt to seize Transylvania, which until the Treaty of Trianon was a part of Hungary. Better yet, Germany could grab off Hungary first and then move into Rumania herself.

Much confusion resulted from reports of the ultimatum, but at week's end the main results were that Rumania agreed to give Germany temporarily a greater share of her trade while refusing to surrender any political rights. Discussions were described as "progressing amicably," which probably meant that Rumania would be as tractable as she thought necessary, would stanchly refuse to give in if backed by Britain and France. Meanwhile, just in case of trouble, King Carol ordered some 500,000 soldiers to man Rumania's western frontiers.