The Waterbury Democrat., 1938-02-22
Credit Loans To Italy

The Daily Herald asserted today that the government board of trade department already had negotiated credits agreement and that ltal- ian representatives were waiting ir London to sign it. It was asserted that the credit would be granted by means of a guarantee, in the name of the Export Guarantee commit tee, to protect British exporters against any possible loss. The sums of f5.OOO,OOO to G10,000,000 ($25, ,000,- 900 to $5OOO0,000) were mentioned as initial guarantee figures for what was expected to be a substantial stimulus to British exports to Italy
 The credit reports coincided in a warning in the financial news that the government must not expect British bankers either to underwrite any loan to Italy or to induce in- vestors to subscribe to such a loan.
 Protests Over Eden
 There were rumors of wide reper- cussions to be expected from the resignation of Anthony Eden as foE- eign secretary in protest against Prime Minister Neville Chamber lain's determination to seek immedi- ate agreement with Italy.
 One rumor was that the resigna- ton of Sir Robert Vansittart, chief diplomatic adviser to the govern ment, might be expected. Moved from his post as permanent foreign under secretary to take the new job as diplomatic adviser" Vansittart is a close friend of Eden. It was noted that he was the first official visitor to Eden's home yesterday.
 Reports as to Italy'S demands for a settlement were various. The News Chronicle reported that Pre- mier Benito Mussolini would de- mand not only recognition of Italy's Ethiopian conquest but a share in the defense of the Suez Canal and naval equality with Britain in the Mediterranean.
 Trade Circles Discussion.
 Trade circles, discussing reports of possible British credits to Italy said that some exporters, notable South Wales coal men, had urged a government system of guarantee ing export credits to Italy under the trade pact now being negotiat- ed, and that the problem was un- der discussion. But some doubt was expressed whether the government would guarantee the exports because of the political risk. Officials re- fused to talk.
 Continuance of political tension was made evident by the size of the crowd that gathered in Downing street this morning to watch the arrival of ministers for routine cabinet subcommittee meeting, un- connected with the foreign Situa- ton.
 The chief item on the calendar of the house of commons was tht following motion drafted by Arthur Greenwood in behalf of the labol party:
 Motion Drafted
 'That this house deploreS the cir. cumstances in which the late for. eign secretary has been obliged t( resign his office and has no conf. dence in his majesty's present ad' visers in their conduct of foreigr affairs"
 It was taken for granted that th' vote would be party one and tha the government was sure of over whelming support. But 1t took nt chances. A three line whip" wa! ordered sent to all government sup porters-a virtual order to be il their places today for the debate anC the vote. For the government, wer' the conservatives and the small ma tional labor and national libera groups, with the labor and libera parties opposed.
 The government sought not onl. to get an impressive vote of conf dence but to make it appear tha Eden resigned because of 8 mer, personal difficulty on procedure. Blu the delicacy of the situation wa indicated by reports that Viscoun Halifax, prospective foreign minis ter, would handle merely routin matters and that Chamberlain him self would handle Italian negotia tions because he thought it unfai to ask any minister to take the re sponsibility.
 Eden as an Ordinary
 Eden was expected to hand ove his seals of office to King Georg today in formal token of his resig nation, and then take his place a an ordinary member of the con