SANCTIONS IN DETAIL

New Zealand Herald, Volume LXXII, Issue 22240, 15 October 1935, Page 8

SANCTIONS IN DETAIL

Geneva's decision that sanctions should be imposed on Italy was received generally for what in effect it was, a gesture of immense moral weight and significance. Now that reports from various sub-committees which have been considering details are iappearing, it is evident that in the application of the policy there are many technical difficulties. This might have been better appreciated at the outset had the greater factor, the actual decision to apply the sanctions, not been so important as to obscure the rest. It now becomes plain that to ostracise a nation in the way required ia not a simple process. It would not be if there were universal adherence to the League, as was anticipated when the Covenant was drafted. Even now the difficulties are not wholly due to the existence of non-member or nonassenting nations, though their presence in the foreground is naturally a complication. It is notable that the possibility of suspending commercial credits to Italy was questioned until it was pointed out' that the United States, not a member of the League, had taken a definite stand on this point. Even so, it is likely that many credits would have been refused without any action by the League, since Italy's power to meet her obligations was in question before hostilities were begun. On the other hand, a real difficulty seems to exist over Italian deposits and holdings of securities abroad. It is indicated that any attempt to place an embargo on dealings in these might have a dangerous effect on the whole money market. Such a point must have great weight, for the nations deciding League policy will naturally not wish to injure themselves or any non-adhering country even in their anxiety to bring Italy to book. However, it has been discovered that the control of certain key commodities is relatively simple, and jt appears likely that action will be taken in this direction almost at once. Though the complete economic and financial isolation of the delinquent may not be feasible, the League may well be content with the moral and material effect of what it is possible to do speedily and effectively.