1938: Denmark

German Nazi Agitation.

In common with all other European countries, Denmark was preoccupied during 1938 with the international crisis which developed from the beginning of the year until the climax in September and October. Its concern over the danger of a general war was somewhat heightened by the increasing agitation by German Nazis for the return to Germany of North Slesvig, which had been awarded to Denmark in 1920 after a plebiscite. In the Danish Parliament on April 13, a Nazi party member fired a blank cartridge at the Minister of Justice; and at the annual congress of the party on the following day, National Socialists paraded in uniform, flew the swastika, called for frontier revision, and sent greetings to Hitler. Although the German Government took no threatening steps toward Denmark, some elements in the German minority were restive and from time to time made demands for cultural autonomy similar to those of the Sudeten Germans in Czechoslovakia.

National Defense.

Cooperation of Scandinavian Countries.

As European political relations grew more and more tense after the annexation of Austria in March. Parliament authorized the Government to borrow 60,000,000 kroner for the purpose of hastening its military defenses and of establishing a reserve of raw materials, fuel, and provisions for a possible emergency. In view of Denmark's exposed position, however, the Government set itself firmly against military alliances and large-scale armament, and turned instead to efforts taken in cooperation with the governments of Sweden, Norway, and Finland, to preserve the traditional neutrality of the Scandinavian countries as a group. In meetings at Oslo on April 5 and 6, the Foreign Ministers of these four nations rejected the idea of a Scandinavian military alliance, but agreed that their countries should remain out of rival European coalitions and should make every effort to prevent being dragged into any possible war. To this end, they undertook to lay the groundwork for mutual economic help which, in case of war, might enable each of the countries to maintain its economic independence despite the inevitable attempts of belligerents to restrict and control neutral trade. Moreover, they approved a draft agreement revising their neutrality policies in the light of the difficulties experienced during the World War. On May 27, the four governments signed a final declaration at Stockholm, setting forth their intention to apply similar neutrality rules and stating the rules which each would enforce within its own jurisdiction.

Neutrality Policy of 'Oslo Powers.'

This neutrality policy was given wider application by the seven 'Oslo powers' — including The Netherlands, Belgium and Luxemburg in addition to the four Scandinavian states — which practically abandoned their effort, begun in 1930, to reduce tariffs by international agreement and concentrated their efforts instead on a movement to avoid any participation in possible collective action by the League of Nations. On May 15 the seven states agreed, in view of world conditions, to terminate on July 1 their mutual trade pact of May 1937. At a conference on July 23, Dr. Peter Munch, Danish Foreign Minister, asserted that 'all 7 of our states are definitely determined never to participate in any conflict between great powers.' In September, the governments declared in the Assembly of the League of Nations that under the League Covenant each state was entirely free to decide whether or not to take part in sanctions.

Economic Conditions.

Except for temporary dislocations of trade, the international crisis did not injure Denmark's economic life, and the Munich settlement of Sept. 30 seemed likely to bring still further gains in exports to its chief customers, Germany and the United Kingdom. On the whole, the country enjoyed probably its most prosperous year since 1930. Danish agriculture — which on June 20 celebrated the 150th anniversary of the abolition of villeinage — produced the largest grain crop in its history. Labor benefited somewhat from several new labor laws, but suffered from the continuance of a considerable measure of unemployment despite the high level of industrial production.

Government Reform: Budget.

Parliamentary reform was foreshadowed by an agreement between Government parties and Conservatives concerning the size of the two houses, the schedule of sessions, and voting qualifications. The Government budget, one third of which went to social services, showed a surplus of receipts over expenditures.