ECONOMIC WEAKNESS.

Manawatu Standard, Volume LX, Issue 166, 13 June 1940, Page 7

ECONOMIC WEAKNESS.

ITALY’S PLIGHT. LIMITED RESOURCES. (British Official Wireless.) Received June 13, 11.8 a.m. RUGBY, June 12. Economic observers in London ' consider that Italy’s reserves, both of war materials and food, in spite of the stocks she has been building up, must be reckoned on the basis of months rather than years. As regards oil, Italy in 1938 imported 2.6 million tons for homo consumption, of which over two-thirds came through the Straits of Gibraltar. Moreover, the main source iof Italian aviation spirit was Dutch Curacao and it was carried in Norwegian s tankers. Thus the bulk of Italy’s sources of supply of oil have been cut off.' She will have to compete with Germany ior the limited Rumanian and Russian supplies, and also for the means of transporting such supplies. This is but one example of the most important economic result of Italy’s entry into the war, which, with the resultant closing todier of extra Mediterranean markets, means she becomes a direct competitor with her ally in those markets in South-East Europe hitherto sending so large a part of their exports to Germany, and in which Germany has found almost her only external sources of supply of certain vital raw materials and food.

The result .must lie either that Italy. will fail to obtain the supplies she requires in order to eontimv,. the war or the volume formerly taken 'by Germany will have to be reduced. COAL BLOCKED. With regards to coal, Italian industry largely depends on imported supplies, her annual requirements being estimated at 12 million toils Three million tons came from Britain last year. Supplies from her other principal source, Germany, can no longer come by sea, and much depends on the attitude of Switzerland. It is recalled that the Frankfurt-Basic line, one of the principal routes, is vulnerable to French military action. Italy's normal imports oi iroii ore 'are 350,000 to 400,000 tons annually, and the greater parr comes from Spanish Morocco via Melilla, and the rest from North-West Spain. Italy’s food position cannot 'be too good, relying as she does so largely on imports In this respect her colonies are a definite liability to her — she must even send water as well as food to tne Libyan troops. On the entry of Italy into the war a Royal Proclamation gives a list of articles which will be treated as contraband. The list is practically identical with that which applies to Germany. England and Italy are believed to have reached an agreement for an exchange of certain categories of .sub-jects,-including-journalists in addition to diplomatic personnel, states a Press Association report. About 300 Italians will be permitted to leave Britain.