CHECK BY ALLIES

Gisborne Herald, Volume LXVII, Issue 20186, 2 March 1940, Page 5

CHECK BY ALLIES

COAL FOR ITALY GERMAN EXPORT BAN ATTITUDE OF BRITAIN ALTERNATIVE SUPPLIES CONCESSION REMOVED (Elee. Tnl. Copyright—United Press Assn.) (British Official Wireless.) Reed. noon. RUGBY, March 1German exports of coal to Italy wR) be subjected tp Allied contraband control as from to-day, says the Daily Telegraph. Hitherto, as a temporary arrangement, this traffic has been allowed to pass through the blockade, the Allies having permitted a period of grace to enable Italy to lind alternative sources of supply. Britain was prepared to supply all of Italy’s coal needs from British mines in return for supplies from the Italian heavy industries, but this was refused. Certain apprehension seems to have arisen regarding the proceedure. It had always been intended that German coal exports to Italy should be subjected to enemy export control and the Italian Government was so informed shortly after the reprisals order-in-council of November 27 was issued. In view, however, of the very serious effect upon Italian industry of the immediate suspension of so large a part of its coal supplies, it was arranged to' allow a breathing space during which other arrangements could bo made. British Offer of Supplies At the same time, the Italian Government was informed that Britain would be prepared to supply additional quantities of coal required by Italy provided arrangements for payment could be made. Special efforts were made during the recent commercial and financial discussions in Rome to provide for additional purchases by this country in Italy, which would enable her to pay for ber coal supplies. Certain difficulties have arisen in the course of these discussions, but it is still hoped to arrive at a satisfactory revision of the Anglo-Italian clearing agreement which will enable Italy to buy such coal as she requires in the United Kingdom. It is felt, however, that there is no longer any justification for delaying the necessary action against German coal exports. Accordingly, any German coal found in ships leaving port after midnight tonight will be subjected to detention under the reprisals order-in-council.