Brussels, Apr. 24.
The financial projects of the Government suffered a setback today as the Catholic bloc at an extraordinary congress rejected them by a large majority.
The Government is expected to modify the plans somewhat and thereby avoid a Cabinet cı The Socialist Minister of Finance, M.
Soudan, h y declared that the projects were not unchangeable.
The Catholic bloc in Belgium is an important factor in the governmental coalition, ha deputies in the Chamber. The coalition includes, beside this group, the Socialists, numbering 70, ənd the Liberals with following the merging of Austria in the German Reich, and the average German is stated ' to be quite confident that Herr Hitler will see to it that the matter is settled in Germany's favour.
Semi-official circles in Czechosslovakia, however. cables Route Prague Correspondent, are fearful of granting the "Sudeten" Germans such wide autonomy, as they feel that the'"Sudetens" might in time The plans vetoed by the Catholics were destined to cover a deficit of about Frs. 1,970,000,000 by economiz~ ing to the extent of Frs. 661,000,000 and levying new taxes to raise a further Frs. 1,250,000,000.
The Catholic bloc want the budgetary equilibrium re-established chiefly through important economies on expenditure. The bloc is against any incre: es in taxation—Hava become practically independent of Prague and thus establish a wedge which would first disrupt and then destroy the country.
Germany's official spokesman, in an interview with Reuters Berlin Correspondent today, denied that there was any comparison between Austria and Czechoslovakia. and he empha sised that German troops were marched into Austria because they were invited by the Austrian Chancellor It is noteworthy, however, points tish Garri on Leay Cairo, Apr. British garrison on frontier has withdrawn to Cairo in consequence of the Anglo-Italian treaty. Newspapers here report with special sati ction that the withdrawal of the Italian troops from Libya has out Reuters Prague Correspondent, that if the "Sudeten" Germans were granted autonomy, their lo might request Germa A help in the event of a dispute with the Czechoslovakian Governmer
Text read from the printed page and cleaned; old type leaves the occasional error.