LEAGUE'S PROBLEM

New Zealand Herald, Volume LXXIII, Issue 22344, 15 February 1936, Page 13

LEAGUE'S PROBLEM

OIL SANCTION PLAN FEELING AT GENEVA DECISION WITH AMERICA By Telegraph—Press Association—Copyright LONDON. Feb. 13 There has been little reaction yet to the oil experts' report on the question of an embargo against supplies for Italy. Rome officially contents herself with emphasising that the experts miscalculated her needs and resources. Italian military experts at Geneva say the embargo, plan now has entirely vanished. An American comment that the report of the experts merely "passes the buck" back to America finds echo in a message from Geneva to the effect that the general impression there is that America will not move for an embargo but may be annoyed at being saddled with the responsibility of deciding its fate. The Morning Post's Geneva correspondent says it is clear there will not be an embargo, at any rate in the near future, because the two main points of co-operation are not attainable. America Unlikely to Co-operate Much interest is displayed in the English press in the report of the experts. The Daily Telegraph says the really important question is, not whether an oil sanction should ho imposed, but whether, assuming that it ought to be, it could be made effective. Obviously that would depend upon the action of the United States, which at present is uncertain. However, the general opinion that President Roosevelt's Neutrality Bill died at its birth is confirmed bv the action taken yesterday by the Foreign Relations Committee of the Senate, which extended the life of the old but expiring Neutrality Act to May 1, 1937. In this Act therd" is no mention either of oil or of limitation. The chances, therefore, of the United States' exports of petrol being limited to the 1934 figure, which was only 6.6 per cent of Italy's imports, are very slight. What the experts have established is that the decision of the League depends upon the decision of Washington. If America does not restrict exports her shippers probably will take full advantage of the opportunity. In that case, although there is not a thought of a blockade a new cause of friction and ill-will would be immediately created which would react disastrously in all directions. Different View ot the Situation On the other hand the Manchester Guardian's Geneva correspondent quotes an opinion that America is likely to discourage abnormal exports through her fear that the members of the League, otherwise, would transfer their oil orders to Rumania and Russia, which have been faithful to sanctions. In this way the market might be permanently lost to America.

The Guardian says the decision of the Foreign Relations Committee in Washington must not be accepted as final, and states that if the League should decide to impose an oil embargo in any event, it would immensely strengthen the position of those Americans who would not wish their country to have the distinction of nourishing ar unjust war.

The paper adds: "The imposition of a sanction by the League Powers would reinforce the present sanctions. It is a strange reflection that if only the League had acted with determination when those other sanctions were imposed the war might now, according to the calculations of the Technical Committee, have been within a fortnight of its end." Imposition of Sanction TJrged The Daily Herald urges that the League Powers should impose the oil sanction. "The people of the United States," it says, "are watching Geneva, not to see if it produces statistics, but to see if it takes action. Action, and swift action, is the only way to secure America's co-operation. "Even should there bo no American co-operation the oil embargo will make the waging of the war in East Africa more difficult and more expensive. That being so, let us get on with the job at once."