SANCTIONS BAN

Waihi Daily Telegraph, Volume XXXIV, Issue 8847, 26 November 1935, Page 4

SANCTIONS BAN

ECONOMIC EFFECTS ON POURS RESULTS IN THREE LANDS ITALY—PRANCE—BRITAIN As the sanctions against Italy as the aggressor in the war against Abyssinia were put into force by the League of Nations on Monday last no doubt readers will be interested to hear what the effects of the exercise of the penalties will be on three of the leading Powers concerned —Italy, Prance and Britain. Summarising the position the “Christian Science Monitor” says:— ITALY Italy stands to lose several billion lire yearly in exports by isolation from" other League of Nations members with the imposition of economic and financial sanctions against this country. But Italy feels this loss will be made "up in exports to other counties. Italian economists .insist. Quoting recent reports, they showed the so-called “gold bloc” counties —Switzerland, Poland, Holland, France, Belgium and Luxembourg all members of the League, in a survey here in 1933, took only 21.9 per cent, of Italy’s total exports of 5,980,000,000 lire. (The lire is quoted at 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.

Other 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 the total exports; but such exports will be needed by Italy itself during the war. On the imports side, economists pointed out that Germany and the United States have always 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 with only 14.6 per cent, of the total imports. Italians, therefore, do not believe the nation can be starved out for lack of supplies unless the United States, Germany, Japan, and other countries not members of the League take mea.sures against her. FRANCE French economists point out that Yugoslavia would be one of the greatest losers economically should strict economic sanctions be applied against Italy. If a halt in world trade with Italy is ordered, Yugoslavia will lose her best customer, 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 with Ethiopia’s desire to maintain its independence and the Croats’ and Slovenes’ memories of Piume. France would lose a slightly favourable trade balance in case commercial traffic were halted, but French exports to Italy constitute less than one-thirtieth of France’s total world exports. Imports from Italy are less than one-fiftieth of this nation’s total imports. Dui'ing 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 exported to the Mediterranean Power. British miners will, suffer most since more than a third of the total exports to Italy are British coal. The British iron, steel, machinery, woollen, and automobile trades also will be affected. Because of the 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 observers believe that if a ban on the export of munitions to Italy could be enforced the Ethiopian war might be of short duration.

Italy provided only 1.7 per cent, pf the world’s export of arms in 1934; but no- matter how large the stocks she has on hand, war wastage—estimated at 100 per cent, monthly in the ease of aeroplanes—would rapidly shrink them, experts pay, and she would lack the means of -manufacturing fresh supplies. Only the United States, Great Britain and the Soviet are self-sufficient in most of their war necessities, Italy lacks chrome ore, mica, nickel, platinum, rubber, tin, tungsten, coal, copper, iron, lead, manganese, petroleum wool and zinc.