Evening star., 1935-11-03
WAR FEARS EASE,
BUSINESS EXERTS
STRONG INFLUENCE
London Financiers ReIuc-
tant to Support Sanctions.
Election NearS.
ITALY GIVEN CHANCE
TO BACK DOWN SLOWLY
British Trade Feels Political Un-
certainty, but Early Upturn
Is Expected.
Dispatch to The Star.

Special Dispatch to The Star.
NEW YORK. November 2.-Cables
and radio dispatches to Business
Week give the following survey Of
business abroad for the week ending
today:
Italians received a shock one day
this week when they scanned the
morning newspapers War became a
reality even to those who have not
fiocked down to Naples to see their
boys of to the parched battle grounds
of East Africa All Italians their
leader declared, will have two meat
less days every week to help conserve
food supplies There were other re-
strictions, and hint that the country
might be reduced to food cards before
the Ethiopian affair is settled.
I'm spite of this new warning that
Italy can acquire larger colonial
empire only after considerable self
sacrifice, the country was much less
tense than it was two weeks ago.
Five Factors Important.
"What eased this tension? Busi-
ness Week sought an answer from its
European correspondents, including
direct word from Rome, and SINNERS
significant developments down to
these FIVE:
"u Sir Anthony Eden. Britain's
young and hashy international nego-
tiator. has been following more or
less personal policy in Geneva. II
was vigorous policy which demanded
that Mussolini comply with British
demands or face the possibility of
war. An important group in London
realized that this ignored the domestic
political situation in Italy and al
lowed the Italians no opportunity to
back down gracefully, This group
preferred to give Mussolini time. and
hoped, with this less vigorous policy,
to avoid war.
"(O The British government Is, Of
course, very much opposed to being
the originator of a war, and having it
break out at election time. especially
since the nation is thoroughly un.
prepared as far IS modern arma-
ments are concerned.
"(O What seems to be the really
important reason for not starting
trouble now was the CITY, London's
tremendously important commercial
and banking center. Leaders recog-
nized the futility of sanctions with
out the complete cooperation of the
United States. Further. they realized
that if the British were to apply sane
tions without the support of the
United States they were likely to
throw away old and profitable mar
kets in Italy without accomplishing
anything
Bankers Issue Statement.
Financial sanctions were applied
and bankers issued a statement char
acteristic Of the attitude Of all British
business toward the entire picture
We are exceedingly sorry to be obliged
by superior orders to stop. all rela-
tions with Italy and thus to interrupt
very satisfactory business relations
which we have been entertaining TO,
= century No government so eager
as the British over its country's bust.
ness interests, and on the eve Of a
general election, can ignore this atti-
tude.
40 There is no doubt that the
favorable French reply to Great Brit.
aims request that French ports De
opened to the British feet in case
they were attacked in the Mediter-
ranean played big part in soothing
and relaxing the British tension and
excitement regarding the situation.
Communism Feared.
"(5) Finally, there was the fea,
that Communism might break loose In
Italy as a result of the strain of q
major war.
What is to happen now? There Is
no doubt that Italy, after this week OF
panic, IS much more prepared te
yield and negotiate. But. for a mat.
ter of prestige it cannot easily re-
linquish the territories 1t has occupied
up to now. Italy must work out its
own scheme. Evidently it is going to
take time. But MusSolini Is SLOWLY
backing down with as little loss OF
dignity-at home at least-as he can
manage.
Britain is more cheerful this week
The election campaign is in full
swing, with the election only two
weeks away. Business is unsettled
now, but there Is q confident belief
that the unsettlement will not last
for long and that the Christmas trade