Ban on Financial Transac' ins with Italy: Embargo on Arms to Ethiopia Lifted Dissension broke out in the ranks of the members of the League of Nations last Wednesday when the Assembly met in a tense atmosphere to consider the question of sanctions against Italy. After Dr. Eduard Benes, the chairman, had explained the motives which prompted the convocation of the Assembly, the Austrian and Hungarian delegates threw the meeting into an uproar by declaring their respective governments' refusal to participate in any. sanctions, Baron Pflugel, the Austrian representative, said his Government, while iting to reaffirm its good faith and attachment to the principles of the League, was not ina position to aswoelate' itself with. the decisions of other members of the Council, Italy, declared, was a country which, in desperate conditions, had contributed to the national independence of Austria, and, therefore, she had the lively sympathy of Austrians. Austria could not £o back on such friendship.
On behalf of Hungary, M. Velich said they were unable to associate themselves with the decision apply sanctions against a country with which they always "had had tions, Hungary, unfortunate position concerning economic sanc~ tions, for the suspension of all her exports, to Italy would produce an economic upheaval and a severe 'With' the " gathering generally stunned by this development, ther delegates rose to speak, and the President, therefore, adjourned the sitting.
Subsequently, the Assembly nominated the following eleven " count. ries to serve on the ce-ordinating. committee with the Council consider the application of sanc~ tlons:—South Africa, Persia, Yu-
Australia, Sweden, Belgium, "Vene-Holland, Switzerland. The last-named, "however, reserved its reply until it was acquainted with the terms of reference, When the Assembly resumed on 'Thursday, following a spirited defence of Italy's attitude by Baron Aloisi, the chief Italian delegate, M. Benes, the President, announced that the Councis report condemning Italy stood approved, with Austria and 'Hungary as the' only dissentients.
'The sub-committee of sixteen' appointed to deal with the question of Sanctions against Italy, on Friday afternoon unanimously decided te itt the embargo on arms and munitions to Abyssinia and to apply the embargo to Italy, says a Reuter dispatch.
Although the Sanctions Co-ordipating Committee at Geneva has decided tovlift the embargo on shipments of arms to Ethiopia, the United States Government will not follow sui,
Text read from the printed page and cleaned; old type leaves the occasional error.