Evening star., 1936-02-13
OIL SANCTION PLAN
FADES AS j. s. AID.
LIKELIHOOD FALLS
Attacks on Financial and
Economic Measures Now
in Force Feared.
REPORT OF COMMITTEE
GOES TO Governments
Individual Nations Must Decide
Whether to Fix Date for
Embargo Imposition.

BACKGROUND
Three countries. produce about 81
per cent OF ioorld's petroleum sup
ply-RuSSid, United States and
Venezuela. Fourth nation hduing
dominant position in oil field is
Britain, through control OF distri-
button OF production in colonies.
All but United States are members
OF League OF Nations.
Normal production in Italy in
year equals that in United States
in about ttDo hours. Embargo on
supply Mould cripple Italian fight
ing strength, ii all major producing
nations co-operdted.
By the Associated Press.
GENEVA, February 13.-Advices
from Washington that congressional
legislation to authorize an oil embar-
go seemed improbable strengthened
today a general Geneva belief that
application of a League of Nations oil
sanction against Italy appeared un-
likely.
The League committee of experts,
in its report on the possibilities Of en-
forcement Of an oil sanction, had
ruled that unless the United States
participated the proposed extension of
penalties upon Italy for its war in
Ethiopia would fail
Attack on Present Sanctions Feared.
Some League officials pointed out
that if the League applied an oil sane
ton, which was deemed hopeless in
advance, this action might bring an
attack upon existing financial and
economic sanctions by sanctionist ma
ton which are now suffering losses
through their operation of the war
penalties.
A report on the possibilities of en-
forcing an oil sanction, drawn up by
the committee after many hesitations
and repeated changes, particularly
with reference to the position of the
United States and Venezuela, now
goes to the League governments.
Administrations of the individual
nations must decide, through the
Leagues Sanctions Committee Of 18,
whether to fix a date for imposition
Of the proposed embargo.
U. S. Action Uncertain.
In view of uncertainty as to whether
the United States would curb its oil
exports to Italy, an opinion prevailed
that even if the League states saw
political wisdom in decreeing the
sanction, they would hesitate to act
without some assurance that the
United States would limit its ship
ments.
"a compromise neutrality measure,
agreed upon by the Senate Foreign
Relations Committee yesterday, omit
ted a proposal in the original admin
istration bill which would have au-
thorized President Roosevelt to place
quota restrictions on shipments of
war materials" such as oil)
The United States entered the
League consideration in a second i'm
portant discussion.
The oil experts decided that if Italy
drew its Oil from ports on the Gulf
Of Mexico, Italian owned tankers could
transport about 100000 tons of oil a
year.
They estimated that Italy could
charter American or German tankers
to transport the rest of the warning
nations oil requirements, set at about
3,5o0.000 tons year.
Thus, in general League opinion, an
embargo against oil tanker shipments
to Italy could not be effective unless
the League resorted to blockade.
Qtalian sources have insisted an OIL
sanction would bring on blockade
and a blockade, war;
The committee of experts concluded
that If an embargo on transport oi
oil to Italy were decided upon, the
most practical form would be one pro-
hibiting tankers from proceeding to
Italy and prohibiting sale OF tankers
by sanctionist states to nations not
applying the oil embargo.
OIL BAN POWER DENIED. \