Evening star., 1935-10-14
War
Continued From First Page.)

the duty Of deciding whether legisla-
ton is in conflict with the Constitu-
ton and might declare sanctions un-
constitutional.
DR.. Ruiz Guinazu Of Argentina,
president of the League Council, said
the country was not opposed to sane
tionS, according to the Argentine
legation, but there would be no par
liamentary session until May. Under
the circumstances Argentina can only
approve Of financial. and probably also
of economic, sanctions subject to &C
ton by Parliament.
1921 Resolution Cited.
Ruiz Guinazu told the committee
that his nation bases its attitude on
q League Assembly resolution of 1921
which authorizes postponements for
certain states of the application of
sanctions in order to reduce to min
imum the losses and embarrassments
entailed.
Other governments were urged to
take legislative action, under the pro-
visions of that resolution, as soon as
possible to enable them to enforce the
sanctions. League officials anticipate
constitutional complications in some
other states.
Numerous delegations in Geneva
have openly expressed the fear that if
financial and economic sanctions
against Italy are not widely and
quickly effective, Great Britain may
propose a peaceful naval blockade
against that country.
The committee of 18 plans to set
up permanent subcommittee to watch
over the application of the financial
sanctions-in other words, to make
sure they really work.
Drastic Sanctions Put of.
British and French delegates de-
cided to put off final agreement on
drastic economic sanctions until other
milder measures at least have been
tried to cut short Italy's warfare in
Ethiopia.
With an arms embargo against Italy
already voted, the League Committee
of Eighteen approved the recommen-
dations by the Financial Sanctions
Committee for an assortment of loan
and credit measures calculated to
make Mussolini uncomfortable finan-
cially.
Britain has been pressing for sharp
er economic sanctions, but delegates
Of smaller states, such as Greece and
Rumania, we're reluctant to deal with
these measures without compensa-
tion arrangement which would reim-
burse them in some form for loss of
Italian markets.
The French presented a view that
such economic projects as Britain's
buy nothing from Italy" proposals
should be postponed for trial of
less serious measures.
Postponement Accepted.
The British accepted postponement
of decision on this matter until
later in the week, with the under
standing that the Committee of Eight
cen would discuss an imports embargo
project and plan for export bans
on certain products, without attempt
ing to decide Immediately which plan
should be tried first.
Diplomats described the resolution
of the Financial Sanctions Committee
as containing these measures:
/. Prohibition of all loans destined
for the Italian government and all
subscription for loans issued elsewhere
on behalf of the Italian government.
2. A ban on banking credits destined
for Mussolini's government and con-
tinuation of loan contracts for that
government.
3. Prohibition of loans destined for
Italian public authorities or any per-
sons or societies in Italian territory,
as well as all subscriptions for such
loans issued in Italy or elsewhere.
Ban on Capital Issues.
4. A ban on all issues of shares or
other capital destined for persons or
societies in Italian territories, as well
as subscriptions for such issues in
Italy and elsewhere.
5. Prohibition of all banking and
other credits destined for persons and
societies in Italian territory, and con-
tinuation of such contracts existing in
favor of such persons and societies.
6. A ban on issue of Solde d'Em-
prunt (paid account certificates) of
loans or shares of capital based on
contracts execution of which has not
ended.
Z. Prohibition by participating gov
ernments of all transactions men
toned in the first six points. whether
effected directly or through an inter-
mediary.
It was pointed out that financial
centers of the world already were
observing extreme reluctance regard
ing loans and credits to Italy. From
this viewpoint 1t was felt q financial
blockade would only recognize for.
mally what bankers already were
doing.