PAYMENTS STOPPED

New Zealand Herald, Volume LXXV, Issue 22939, 18 January 1938, Page 9

PAYMENTS STOPPED

RUSSIA TO ITALY ALLEGED UNPAID DEBTS RETALIATORY ACTION By Telegraph—Press Association—Copyright MOSCOW. Jan. 16 An official announcement states that last year some Italian institutions and firms did not pay Soviet organisations for goods delivered to Italy, especially oil, in spite of legal machinery for this purpose. The Italian Ministry of the Navy, in spite of repeated demands, has not paid the Naptha Syndicate and one of the largest firms in Italy has not paid its accounts. Russian vessels have been detained without cause at Italian ports, violating the agreement between Russia and Italy regarding State property. Consequently the Soviet has suspended all direct payments to Italian firms, and has the money due be deposited in a special account in the Soviet State Bank. A message from Rome s'ays the Ministry denies that Italy has defaulted to Russia. Soviet circles do not reveal the amount owing. CONTROL OF CAPITAL MUSSOLINI'S POLICY FUTURE OF INDUSTRIES . LONDON. Jan. 18 The Rome correspondent of the Daily Telegraph says Signor Mussolini's interpretation of his dictum of October, namely: "In Fascist Italy capital must be subject to the State's orders," is already indicated by the State taking over the control of shares in all the great industries. Nevertheless, the financial oligarchy still exists, consisting of some 20 families who fill and control the directorates of shipping, textile, metallurgical and chemical trusts and companies. Now an article in II Popolo d'ltalia. which belongs to the Mussolini family, is regarded as significant, as it declares that the State shortly will control the boards of all companies.