THE OIL SANCTIONS.

Ashburton Guardian, Volume 56, Issue 100, 8 February 1936, Page 5

THE OIL SANCTIONS.

THE TRANSPORT QUESTION. EMBARGO WOULD BE USELESS. (United Press Association-Copyright.) (Received This Day, 12.20 p-ni.l , ' GENEVA, February 7. The Transport Sub-committee of the League of Nations reports that an embargo on the transport of oil nould be ineffectual, becase Italy has ample tankers to convey all necessary oil from the United States. She can take from 1,750,000 to 2,000,000 tons j*k. Her normal requirements are 1,100, UUU to The most practical embargo would be the prohibition of the sale ot tankers to States which did not apply the embargo and prevention of the movement of tankers to Italy.

PREVENTION OF SUBSTITUTES. NEGLIGIBLE TART OF SUPPLIES. LONDON, February 6. It is understood that the sub-r.om-mittee of experts has decided arf* c\l embargo against Italy would be elective in preventing the provision oi substitutes which, however, are a negligible part of supplies. Moreover, the consumption of.petrol is oiny 15 per sent ot Italy’s total requirements and it might be possible to replace a portion thereof from alchol coal but Italian plants are inadequate. Therefore while Albanian oil is of poor quality, the transports sub-committee expressed tiie opinion that strict interpretation of article XVI, would prevent tankers owned by members o‘ the League trading with Italy, leaving available German, American and Japanese tankers, but the last nxmod are fully occupied. “The Times” in a leading article says that existing sanctions are working more smoothly and more successfully than was expected, increasing Italy’s difficulty in replenshing foreign currency, exhaustion of which wiil prevent the buying of oil and other essentials. if inquiry shows that an oil embargo is practicable and liicily to accomplish its purpose, the League will not be deterred from apply..ig it by blustering speeches and newspaper outbursts in Rome, the effect of which are opposite to that intended.