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Show Italy Feels the Pinch of Sanctions L e v - r- - .- ; a- s - ' t i -5 .i'- - ( i: i --!V:. .ss? jV; W .. .,; , I -. ......... , .........ii Xjixjiicji " i U " v ; -1 - v i -; Oil! The precious fuel shown gushing forth from the earth at the right is the biggest need today of Mussolini, Mus-solini, shown in inset. How young Italians take pride in turning over their valued private possessions to the gov. ernment to help it beat the pressure of sanctions may be seen at the upper left. Lower left are Romano and Anna-Marie, children of the dictator, turning over their personal jewels to the government. By WILLIAM C. UTLEY CAN oil sanctions stop the war? The answer seems to be "yes" if the league can succeed suc-ceed In cutting off all oil shipments to Italy. Estimates of the experts recently assigned by the League of Nations to make a survey of the situation sit-uation indicate that six or seven months of a complete oil embargo would bring II Duce to cease his operations In Ethiopia. Many qualifying factors may alter al-ter the situation. As a matter of fact, the longer the League of Nations Na-tions ponders the advisability of applying ap-plying oil sanctions the longer the delay the longer Italy will be able to hold, out after sanctions begin to be enforced. For she is reported to be storing oil at a rapidly increasing increas-ing rate; the way in which American Ameri-can oil shipments to Italy have more than doubled normal proportions propor-tions Is an indication of what Is happening between Italy and other nations. Even Rumania, one of the staunchest supporters of the sanctions sanc-tions idea, is increasing her petrol shipments to Italy. Normally, Italy uses 1,500,000 tons of oil annually. With the war operations, now going forward in Ethiopia, she now is burning it up at the rate of 2,500,000 tons. Of her normal importations of 1,500,-000 1,500,-000 tons annually, Rumania furnishes fur-nishes about 35 per cent, Russia 22 per cent, Persian sources (controlled (con-trolled by Great Britain) 12 per cent, Latin-American sources (also controlled by Great Britain to a large extent) 14 per cent, the United Unit-ed States 10 per cent and all other sources 7 per cent During the past year, when Italy Imported 2,500,000 tons, Rumanian shipments leaped to 41 per cent of the total; Russia shipped 16 per cent, Persia 15 per cent, Latin-America Latin-America 15 per cent, the United States 6 per cent and other sources 7 per cent. Because of the delay in the application ap-plication of oil sanctions, it Is believed be-lieved that Italy can go along through the rainy season and pick up her military operations in autumn. au-tumn. Fresh Supplies Are Problem. The temporary let-down in fighting fight-ing will make possible the saving of considerable oil, and will thus stretch out the period of Italy's "reprieve" "re-prieve" a few more months. How long after that time Mussolini can keep going depends upon his success iu securing fresh supplies. The answer to this lies largely with the nations who are not members mem-bers of the league. The United States has not yet made up its mind whether its new neutrality act will contain the provision that exports to belligerent nations must not exceed ex-ceed their normal proportions. One of the tilings holding up the league embargo, of course, Is the fact that member nations are waiting until it can be determined what kind of action ac-tion will be taken by the non-member nations. If Italy can keep buying oil from non-member nations, the members will face the possibility of losing a good share of their oil business for a long time to come, if not permanently. perma-nently. Some of them are trying to console themselves Into thinking that immediate losses will not be very important because a settlement settle-ment may be effected within the next few months. Italy Is attempting to ameliorate Its own situation through the adoption adop-tion of substitutes for oil, and the building of new factories, Installation Installa-tion of transformers, and similar preparations are well under way. The process, even when It gets moving mov-ing well. Is a costly one, however, and It la doubtful whether Italy's i solution to the problem of oil sanctions sanc-tions lies In that direction. Some estimates place the total annual saving In oil by that means could be only about 110,000 tons. Limit U. S. Export. If the United States does adopt the kind of neutrality law advocated advo-cated by President Roosevelt and Secretary of State Hull, the League could then be assured that Italy would not receive more than 200,-000 200,-000 tons of oil annually from American Ameri-can producers. If American shipments are unlimited, un-limited, the League has another card which it could play, however. Most of the oil tankers in use are owned by British and Scandinavian interests. American shipments might be materially cut by denying the United States the use of these tankers. tank-ers. Meanwhile, Italy has been adding to her own fleet of tankers. According Accord-ing to the League transport subcommittee's sub-committee's estimate, Italy now has S2 ships which total " approximately 350,000 tons. There are tankers in tlie Italian navy which might be included, in-cluded, and which would add another 70,000 tons. It has been estimated that Italy might herself be able to transport some 2,000,000 tons annually annu-ally from ports on the Gulf of Mexico. Mex-ico. Undoubtedly, if sanctions on oil are declared, the League would declare de-clare a prohibition on the sale of tankers to Italy, thus preventing her from building up her tanker fleet any more than she has already done. Also, it is probable that the League would forbid the movement of tankers sailing to Italian ports. To accomplish this and to prevent the shipment of oil in containers carried by other types of vessels, it would probably be necessary to declare de-clare naval blockades. This is too much like war, and the League Is exceedingly wary about invoking the blockade. There is little likelihood that new tankers would be purchased by American Interests to carry on a wartime trade with Italy. The policy pol-icy of the administration Is too clear against aiding a nation at war at any time. The usual amount of regimentation regimenta-tion of a people under a dictatorship dictator-ship has multiplied many times since the 53 nations declared economic eco-nomic sanctions on Italy. The government has declared Import Im-port monopolies on hundreds of items, from meat and fish to things like moving picture films. To protect pro-tect the gold reserve the National Institute for Foreign Exchange was authorized to control all transactions transac-tions involving the precious metal. Citizens or corporations may not sell or exchange gold until they have offered it to the government, which, agrees to return it In the same amount and quality within a year, with interest at 5 per cent. Royalty Sets Example. Italy's king and queen set an example ex-ample by sending their wedding rings to Mussolini and the populace quickly took up the idea, thousands upon thousands of persons turning over their own gold rings and receiving re-ceiving iron rings in exchange, in colorful and, Indeed, pitiful ceremonies cere-monies throughout the country. After the depletion of the gold reserve re-serve to a point somewhat under $400,000,000, the Treasury department depart-ment has Insisted that It has maintained main-tained most of that reserve through Increased taxation, the floating of bond issues, the wedding rings, new loans, the conversion of government govern-ment credits and the realization of foreign credits held by private citizens. Prices of foods and other items in common use skyrocketed after Italy had . felt the pinch of sanctions sanc-tions for a little while. Gasoline rose from 85 cents to $1.20 a gallon ; wheat went up 20 lires a quintal Coal, soap and textiles followed. Factories shut down because there were no raw materials to manufacture, manufac-ture, or because of the prohibitive prices on raw materials. Appeals were made to the emotions emo-tions of the people. Boycotts were declared on goods coming from sanc-tionist sanc-tionist countries. Great engines of economy and conservation of sanctioned sanc-tioned articles were set in motion. There were and are plenty of the meatless days and wheatless days that we Americans knew during the war, except that the Italians probably prob-ably observe them more rigidly and more frequently. The populace was encouraged to eat more fish and poultry, that beef, pork and mutton could be conserved or sent to the boys in the African trenches. Newspapers News-papers and periodicals even refused to accept any more contributions from authors of the sanctionist countries, and textbooks from those countries were removed from the schools. To meet the needs of the poorer people, who were hardest hit by the rising prices which followed fol-lowed the application of sanctions, commissions of doctors and dieticians dieti-cians issued pamphlets on the maintenance main-tenance of proper diet and living conditions under the difficulties. The people were not to be denied bread, for the fine wheat harvest of 1035 was 21 per cent greater than that of 1934. In the last five years the total area sown In wheat has been increased hy about 400,000 acres. Another 150,000 acres were added during 1935. Policy of Secrecy. The Treasury department eventually event-ually began a policy of secrecy as to its exact status, and it was believed be-lieved that this status was none too good, in the face of tlie fact that publication of all statements of the Treasury department and the Bank of Italy were suspended. The Italian deficit last year was about $1G0,-000,000, $1G0,-000,000, with nearly half of this accounted ac-counted for by the campaign in Africa. Af-rica. It Is not In foodstuffs, but in raw materials that Italy faces the most dangerous threats of sanctions. Italy Imports nearly 2,000,000 quintals quin-tals of cotton annually three-fourths three-fourths of It from the' United States as against a production of only 9,000 quintals at home. She also Imports five times as much wool as she produces, but much of this Import can he canceled by the substitution of silk, rayon and other materials. The nation imports practically prac-tically all of its requirements in seeds, rubber and, of course, oil. The home production of oil probably probab-ly does not exceed 1 per cent of her normal needs. Italy's needs In timber are not facing any serious threats, for she can still import practically all she needs from Austria. Austria is also helping in fortifying Italy against the pressure of sanctions' on minerals. min-erals. Needs of scrap iron are diminishing di-minishing as the result of national drives to corral all the old Iron in the nation. Italy's own production of iron ore can be Increased about two-thirds its normal needs. With other minerals It Is not the same. Italy must Import all of her tin and nearly all of her copper, from sanctionist sanc-tionist countries. Aluminum may be substituted for some of these products. prod-ucts. The nation is fairly rich in aluminum. She Imports ubout half of ter lead. She must Import about ten times as much coal as she produces, pro-duces, about hnlf of the total Ira-port Ira-port coming from sanctionist countries. coun-tries. Her own coal Is of poor quality. qual-ity. S Western NswatMLiww Unlos. |