SANCTIONS BAN

Wanganui Chronicle, Volume 79, Issue 283, 3 December 1935, Page 9

SANCTIONS BAN

THE ECONOMIC EFFECTS RESULTS IN THREE LANDS With sanctions impending against Italy as tho aggresosr in the East African imbroglio, the probable effect of the exercise of such penalties on three Powers —Italy, France, and Britain—lias been summarised in these three brief statements, says the Christian Science Monitor. Italy. Italy stands to lose several billioß lire yearly in exports by isolation from other League of Nation members when the League imposes economic and financial sancticiis against this country. But Italy feels this logs will be made up in exports to other countries, Italian economists insist. Quoting recent reports, they showed tihe so-called “gold blc-c” countries— Switzerland, Pomnd, Holland, Fiunce, Belgium, and Luxembourg—all members of the League, in it survey hero in 1933, took only 21.9 per cent. <xf Italy’s total exports of 5,980,000,00(1 lire. (The lire is quoted al about. 5d.) The United Kingdom, which would be another sanctioning nation, took. 11.4 per cent., while the non-League members, Germany and the United States, bought 12.2 and 8.7 per cent, respectively. Utiher countries, both members and non-members of the League, bought Italian goods to the extent, of 45.8 per cent. One effect of the proposed sanctions undoubtedly would be the dwindling of exports in Italian foodstuffs, which constitute almost 33 per cent, of tho total exports; but such exports will be needed by Italy itself during the war. On the imports side, economists pointed out t'hat Germany and tho United States always have been Italy’s greatest single sources of supply. The United States has furnished .15 per cent, and Germany 14.6 per cent, of the total imports, which aggregated 7,400,000„000 lire in the quoted survey. The gold bloc countries together furnished Italy witlh only 14.6 per cent, of the total imports. Italians, therefore, do not believe the nation can be starved out for lack of supplies unlc.-s the United Blates, Germany, Japan, and other countries not members of the League take measures against her. France. French economists point, out that Yugoslavia would be c-ne of the greatest losers economically should strict economic sanctions be applied agalnM Italy. If a halt in world trade with Italy is ordered, Yugoslavia will lose her best customers, since the Italians buy more than a quarter of the total exports of France’s Little Entente ally. Observers reported the commercial factor was balanced by Siberian sympathy xvith Ethiopia’s desire to maintain its independence and tihe Croat®’ and Slovenes’ memories of Fiume. France would lose a slightly favourable trade balance in c*se commercial traffic were halted, but French exports to Italy constitute less than onethirtieth of France’s total world exports. Imports from Italy are less than ono fiftieth of this nation’s total imports. During the first six months of 1935, France’s imports from Italy were valued at 210„337,000 francs, and her exports to Italy at 280,456,000 francs. Britain. Great Britain, it is estimated, will lose more than £9,000„000 annually in goods exported to the Mediterranean Power. British miners will suffer most, since more than a third of the total exports to Italy are British coal. Tire British iron, steel, machinery, woollen, and automobile trades also will be affected. Because of tha difficulty of obtaining payment, many British, manufacturers already have ceased accepting Italian orders for goods. Great Britain buys £8,500,000 of Italian goods. In case of stoppage of trade with Italy, it is thought, most of this material could be obtained elsewhere. Statisticians and military observer! believe that if a ban on the export of munitions to Italy could l>e enforced the Ethiopian war might be of short duration. Italy provided only 1.7 per cent, of the world export of arms in 1934; but no matter how large the stocks she has on hand, war wastage—estimated at BX) per cent, monthly in case of aeroplanes would rapidly shrink them, experts say, and she would lack the means of manufacturing fresh supplies. Only the United States, Great Britain, and the Soviet are •elfsufficient in most of their war sities. Italy lacks chrome or®, nickel, platinum, ,rubber, tin, coal, copper, cotton, iron, lead, manganese, petroleum,^wool, zinc.