SANCTIONS ISSUE

New Zealand Herald, Volume LXXII, Issue 22262, 9 November 1935, Page 13

SANCTIONS ISSUE

EFFECT OF IMPOSITION

LOST ITALIAN MARKET ROME'S COUNTER-MEASURES By Telegraph—Press Association—Copyright LONDON, Nov. 7 The sanctions issue now is engaging increased attention in Europe. The City editor of the Times, commenting on the buoyancy on the London Stock Exchange based on Labour's municipal reverses, the decrease in unemployment, and the disclosure of the Government's works plans, asks whether it is wise to ignore the fact that the dispute between Italy and Abyssinia is far from settled, also that the application of sanctions is likely to provide complications which will be troublesome to business. A message from Pariß says the French Exporters' Association and the Producers' Association of Lyons, have both made representations to the Prime Minister, M. Laval, pointing out that French industries are largely dependent upon the Italian market, the loss of which would lead to the closing down of factories or the discharge of hands. They suggest that the Government or the Leaguo should devise a compensatory plan for economic casualties due to the imposition of sanctions. Despatches from Rome indicate that the conversations betwen Signor Mussolini and Sir Eric Drummond have relaxed the anti-British tension, yet the Italians are worried over the effect of the naval understanding between Britain and France on the FrancoItalian agreement. The League's policy has prompted Italian counter-sanctions, which are the beginning of a new economic policy for the permanent diversion of Italian trade to non-sanctionist markets. Italy also is applying anti-sanction treatment to sport. She has forbidden athletes to compete at the Paris championships, and is cancelling sporting events with Britain, France, Australia and New Zealand. She is also appealing to owners not to import foreign racehorses. SYNTHETIC WOOL PRODUCTION FROM CASEIN CLOTHING FOR ITALIANS (Received November 8, 6.25 p.m.) ROME, Nov. 7 Signor Mussolini to-day received the inventor and the manufacturers of casein synthetic wool. They informed him that sufficient was being produced to clothe 30,000 men a month, and a large increase in the output was promised soon.