SANCTIONS

Wanganui Chronicle, Volume 79, Issue 196, 22 August 1935, Page 7

SANCTIONS

COMPLEX PROBLEM Will League 1 ake Action ? POSSIBILITIES DISCUSSED BRITAIN WILL NOT MOVE ALONE (By Telegraph—Press Association— Copyright] Received Aug. 21. 9.50 p.m. LONDON. Aug. 21. The Paris correspondent of the Times says: “Only time will show whether the League Council on September 4 will recommend sanctions against Italy. If it does they will be at first passive and economic, consisting essentially of cutting off such supplies of raw material and credit as have not been cut off already, but the Council will also have to weigh most carefully the justice of the convention that there is no form of sanction that may not mean war. The risks of applying any kind of pressure on a country in the present mood and condition of Italy are obvious. The most effective measure that could be used to prevent the Italian conquest of Abyssinia would be the closing of the Suez Canal to Italian ships, but the Council would first have to vote an executive mandate to the Powers possessing the necessary naval forces, namely, France and Britain. From the naval point of view the task of enforcing such a measure would not be beyond Britain if she made up her mind, but with half a million men under training in Northern Italy, and a French array of only 300,000 designed for quite a different objective, M. Laval may be excused if he exercises the utmost caution at Geneva. On the other hand, there is no question of the British Government undertaking isolated action. The question of the application of sanctions thus becomes a problem of peculiar complexity.’’ CONCERN IN BRITAIN QUESTION OF ARMS EXPORT CONSIDERATION BY CABINET 1 British Official Wireless. J RUGBY, Aug. 20. The Foreign Secretary, Sir .Samuel Hoare, who returned to London yesterday from Norfolk, where he was on holiday, was in conference at the Foreign Office this morning with the Minister for League of Nations Affairs, Mr Anthony Eden, who flew from Paris last evening. Mr Eden’s personal report on the Paris conversations was communicated to the Foreign Secretary, and the situation arising from the breakdown of the Three-Power Conference on the Italo-Abyssinian dispute is under the closest examination preparatory to the meeting of Cabinet to which Ministers have been summoned for Thursday. It was taken for granted by Ministers before they left London on their holidays that Cabinet would be called together before the meeting of the League Council at Geneva on .September 4, but it was generally assumed that Ministers would not be summoned until next week. Cabinet Date Advanced Recognition of the gravity of the situation caused by the failure of the Paris negotiations is, indicated in the decision to advance the date of the Cabinet meeting. A full survey of the situation will be undertaken by the Ministers, ano It is indicated in the newspapers that in particular the question of the export of arms to Italv and Abyssinia will be considered. Before the House of Commons rose, Sir Samuel Hoare announced in regard to this question that whereas the transit of arms across British territory adjacent to Abyssinia would still be permitted in accordance with the international treaty of 1930. His Majesty’s Government had decided that “for the present” they would issue no licences for the export of arms from this country. The reason for this decision was that diplomatic negotiations for a peaceful settlement of the dispute were about to begin and that any other course might prejudice these negotiations. A similar course was taken by France. The negotiations having broken down, reconsideration of the provisional decision is expected. EFFECT ON ’CHANGE GILT-EDGED MARKED DOWN. Received Aug. 21. 5.13 p.m. LONDON, Aug. 20. The Italo-Abyssinian developments are reflected on the Stock Exchange. General drastic marking down lias occurred in prices of gilt-edged industrial securities, especially those recently in speculative favour, as a precaution against liquidation, but there is no great amount of selling, the absence of buyers being more conspicuous than the presence of sellers. ITALIAN GOLD RESERVE AN ALARMING DROP. Received Aug. 21. 11.5 p.m. LONDON, Aug. 21. The Daily Telegraph’s Rome correspondent says that a Treasury statement reveals that the gold reserve has fallen by another £3,340,000 reaching the new low level of £84,000,000.