The Waterbury Democrat., 1935-09-26
Covenant Imposed By Council;MeansLosses
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II OAA 0bO
 covenant would be mad retroac- tive to September 4, the day the council first met in the dispute Ever since then, 1t had been try ing to find a means of avoiding today's grave action.
 q can not believe the path of conciliation is closed" he said Generalization is always possible un- til the report under article XIV paragraph (providing for rec ommendations) is adopted"
 Smaller Nations Speak | Dr. r. +. Munch of Denmark, speaking for smaller nations in the council, said:
 Tt is clear that in this situation the council can not remain in- active. I welcome with greatest satisfaction the declaration just made by the president. The pro- cedure he proposed seems to hold out the best means of safeguarding peace and the principles on which the league is based"
 While this was going on, Italian delegates stood outside in the lobby or drinking at the league bar. A member of the delegation said: T believe 1t is an encouraging ] sign that the committee of five is maintained, thus leaving the path to conciliation open." Committee To Meet
 The council adjourned. It's com mittee of 13, or committee of the whole, will meet tomorrow, to start its report and recommendation and discuss Ethiopia's appeal that a mission of league observers be sent to it's frontiers to see who is responsible for any incidents" or for an attack
 All the time, the council itself will be technically in session, bound under its own act of today to intervene officially if the situ- tion becomes more acute. This is a clear warning to Italy that the league is determined to use all pos- sible means to arrange a peaceful solution and to fulfill its pledge to protect it's members from aggres- sion. And now the council has bound the league to proceed with | II hCNCo6oi ~ ANoS pO remembered that pnalties can be officially considered until Italy at- tacks and 1t judged guilty. The United Press learned that in a secret meeting which preceded its publis one today the council | indicated that any offer made to | Italy from now on will be sugstan- tially less generous than that in the l peace plan which Italy rejected laGt Saturday. 13 Councillors
 It took the 13 members of the council-a1l but Italy-one hour and 10 minutes to agree to in- vo.:e the covenant in dispute, which it has been openly said. risks the life of the league itself and a terrible war.
 The councillors are: Argentina, Austria, Chile, Denmark, Ecuador, France, Great Britain, Poland, Portugal, Rumania, Spain, Tur- key and Russia.
 The paragraphs of article XIV under which they decided they must act, in the interest of world peace and their pledges to protect member nations from attack, are:
 "3-The council shall endeavor to effect a settlement of the dis pute Ca dispute referred too the counciD and, if such efforts are successful, 8 statement shall be made public giving such facts and explanations regarding the dispute and the terms of settlement there- of as the council may deem appro- priate.
 H-If the dispute is not thus settled. the council either unani- mously or by a majority vote shall make and publish a report con- taining g. statement of the facts of the dispute and the recommen- dations which are deemed just and proper in regard thereto"
 Momentous Article
 Then comes the momentous ar- ticle xV5:
 "1-Should any member x re- sort to war in disregard of its covenants under articles XII, XIII or XIV, 1t shall ipso facto be deem- ed to have committed an. act of war against all other members of the league, which hereby under take immediately to subject 1t to the severance of all trade or finan- ciai relations. the prohibition of all intercourse between their nationals and the nationals of the covenant breaking state, and the prevention of .tll financial, commercial or per- son intercourse between the na- tionals of the covenant breaking sta.e and the national of any other state whether member of the league or not"
 | Bonds Recover
 London, Sept. 26.-(UP).-Brit- ie'l bonds recovered sharply on , nows that the League of Nations council would act firmly in the Italian Ethiopian crisis today, and the undertone of the entire mar ket improved. U. s. Represented Geneva, Sept. 26.-(UP).-The United States was represented to- G.y at the council table of the League of Nations.