NO LOANS.

Auckland Star, Volume LXVI, Issue 244, 15 October 1935, Page 7

NO LOANS.

FINANCIAL ISOLATION. 53 POWERS APPROVE SANCTIONS. ECONOMIC BOYCOTT BEING CONSIDERED. United Press Association.—Copyright.—Rec. 12 noon. LONDON, October 14. The Geneva correspondent of "The Times" says that the Financial Sub-Committee of the League adopted almost unchanged the financial sanctions produced by the drafting committee, which consisted of Britain, France and Rumania, based on the report of the committee established on April 16, which recommended that action against a Covenant-breaking State should include the prohibition of the opening of any credits abroad or the authorising of loans. The French delegates doubted the possibility of the suspension of commercial credits, but when M. Maximos (Greece), the chairman of the Financial Sub-Committee, pointed out that United States exporters had decided not to allow further credits to Italy, the sub-committee realised that it could not refuse to take similar action. The sub-committee presented its report to the Committee of Eighteen, which adopted the report recommending a breach of financial relations with Italy. Only slight modifications were made to the sub-committee's findings, which the full sanctions committee will meet to-night to approve. Meanwhile, discussion of economic sanctions continues. Immediate Measures to be Taken. A later communique states that the Financial Sub-Com-mittee's proposal, which the Committee of Eighteen adopted, provides for immediate measures by League members to render the following transactions impossible:— "All direct or indirect loans and subscriptions to loans, bankers' or other credits, issues of shares or other appeals for money for the purpose of obtaining funds for the Italian Government, public bodies or persons or companies in Italian territory. Governments will be requested to inform the committee of the measures they have taken in conformity with the above provisions." The committee examined the draft point by point, and several members asked for explanations of the exact significance of certain provisions, especially regarding branches of forefgn companies in Italy and Italian insurance companies and payments to the Italian Red Cross. The last-named are excluded from the provisions owing to the humanitarian purpose of the Red Cross. Fifty-two Powers approved the financial sanctions. The Committee of Eighteen decided to establish committees to examine the question of a general boycott of Italian exports and the application of an embargo on the sales of certain key products to Italy.