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ITALIAN-GERMAN EXPANSION ROME, Italy, May 8.— Expansion of the Italo-German military alliance to include Hungary as well as Japan was indicated in the flat announcement by editor Virginio Gayda today that in case of war "Hungary will fight with the axis." Gayda, authoritative bell-wether of Premier Mussolinis policies, declared in his Giornale dltalia that the pact constituted a direct reply to democratic encirclement attempts and showed the way to uncertain powers to .join forces with the axis. „