Evening star., 1937-01-04
LOAN BY ENGLAND
TOTALLY EXPECTED
Trade Agreement Also Seen
Possible Result From
Mediterranean Pact.

oAS "A h3hSO"0
Italian inpasion OF Ethiopia In
October, 1885, led to financial and
economic sanctions against her by
League of Nations, under En0ldnd's
leadership until they pere abdn-
doned last July after successful
conclusion In Africa.
Possibility OF ,odr between' Italy
and Great Britain revealed In re-
action # former to sanctions, and
Italian assistance for Rebel Gen.
Francisco Franco in Spain has
ciashed ,tOith England's insistence
upon strict neutrality by oil
potDers. Conclusion OF "0entle-
mans agreement" Dds announced
Saturday from Rome whereby
status quo in Mediterranean wiI
remain unchanged.
BY the Associated Press.
LONDON, January 4.-Financial
quarters viewed British loan to help
develop Ethiopia and a new Anglo
italian trade agreement as possible
results today Of the Mediterranean
accord.
Publication of the terms of the
treaty between Great Britain and
Italy and the notes accompanying
disclosed Italian guarantees to keep
hands of" Spanish territory at Great
Britain's behest.
The pact, which also ended animosi-
ties over sanctions against the Italian
campaign in Ethiopia, was signed in
Rome Saturday.
Informed sources believed the Brit
ish government, which previously had
frowned on any foreign financing,
now was more favorably disposed
toward a plan to send money to italy
to permit British investors to par
ticipate in Italian development Of
East Africais resources.
Italy Short Of Gold.
Some circles expressed the opinion
an "unwritten" part Of the Meditera-
mean "handshake" covered q loan to
Italy.
Rome has been seeking q solution
to an apparent shortage of gold in
foreign exchange, ascribed to heavy
expenditures for the Ethiopian cam
paign.
1t was believed the loan question
would be examined at proposed semi
formal trade talks. The conference,
it was said, would divide economic
spheres between Italy and Great Brit
ain the same way diplomatic and
military spheres we're delineatet
through the Mediterranean under.
standing.
Trade circles said British commerce
was eager that Italian interests cen.
tered in Ethiopia be prevented from
making inroads on Egyptian trade
with other parts Of Africa.
It was said strings might be at.
tached to an italian loan insuring the
economic status quo in the Mediter-
ranean.
British interests have shown eager.
ness to revive foreign trade with Italy
which was throttled by sanctions. Sev.
eral trade missions already have gone
to Italy seeking orders. especially ir
coal
Other Subjects for Talk.
Well-informed sources also said
trade discussions might include foreign
exchange restrictions. frozen CONNER.
cial credits and currency stabilization
Publication of assurances by Count
Galeazzo Ciano, Italian foreign min
lister, ia response to a British note
disclosed "the integrity of the present
territories of Spain shall in all cir
cumstances remain intact and unmQdi
fed" so far as Italy Is concerned.
Neither before nor since the out.
break of the Spanish civil war. Ciant
wrote. has the Italian government zen
gagged in any negotiations with Gen
Francisco Franco whereby the statu.
quo of the Western Mediterranean
would be altered, nor would it engage
in any such negotiations in the future.