ITALY WORRIED

Taranaki Daily News, 9 November 1935, Page 7

ITALY WORRIED

ANGLO-FRENCH PLAN SANCTIONS IMPOSITION LEAGUE FINAL DECISIONS ITALIAN COUNTER-MOVE FRENCH BUSINESS FEARS By Telegraph—Press Assn.—Copyright. London, Nov. 7. The sanctions issue is now increasingly engaging the attention of Europe. The committee of eighteen, which is the executive of the sanctions co-ordination committee of 50 League States, took final decisions at Geneva last night for the operation of economic sanctions on November 18. The City editor of the Times, commenting on the Stock Exchange’s buoyancy, based on Labour’s municipal reverses, the decrease in unemployment and the disclosure of the Government’s works plan, asks whether it is wise to ignore the fact that the Italo-Abyssinian dispute is far from settlement, and that the application of sanctions is likely to provide complications troublesome to business.

The French Exporters’ Association and the Producers’ Association of Lyons both made representations to M. Laval pointing out that French industries were largely dependent on the Italian market, the loss of which would lead to the closing down or the discharge of hands. They suggest that the Government or the League devise a compensatory plan for economic casualties due to sanctions.

RELAXATION OF TENSION.

Messages from Rome indicate that the Conversations between Signor Mussolini and Sir Eric Drummond, British Ambassador, relaxed the anti-British tension, yet the Italians are worried over the effect of the Anglo-French naval understanding on . the Italo-French agreement of last January. The League policy has prompted Italian counter-sanctions, which are the beginning of a new economic policy permanently diverting Italian trade to non-sanctionist markets. Italy is also applying anti-sanction treatment to sport. Athletes have been forbidden to compete in the Paris championships and sporting events with Britain, France, Australia and New Zealand have been cancelled. Owners have been appealed to not to import foreign, racehorses. 'lt is officially denied at Berlin that Germany has made a demarche to the League on sanctions. The Government’s neutrality and non-participation are unchanged. The Government, however, will take suitable measures if an extraordinary increase in the exports of food and raw materials threatens the vital inter°st of German economics. The League of Nations yesterday issued a communique stating: “The committee of eighteeen is informed that the German Government, learning that speculators are purchasing goods in Germany with a view of export to belligerents at a large profit, proposes to issue a decree preventing such speculation.” A British United Press correspondent said the delegates regarded the German communication as most important, suggesting that it exceeded the official version and indicated an intention to place an embargo not only on war materials but also on products designated by the League as key products.