It was to be anticipated that Signor. Mussolini would seek to counter the application of sanctions by certain members of the League of Nations by setting up a similar system himself, for that it was his decision, that no foreign goods shall be imported into Italy save under special Licence, amounts to, It is reported that, under the licence system, preference will be given to imports from countries that have not assisted in the application of sanctions, and it is believed in Rome that this counter-stroke will have far-reaching effects. Undoubiedly it is going much further than Geneva has contemplated. for it is within the power of Signor Mussolini to institute what is practically. a boycott against the imports irom certain countries. Signor Mussolini has armed himself with completer powers than has the League and to lake the case of Great Britain alone, it becomes apparent on Agures that the weapon he is forging is a strong one. For the financial year 1933-34, Italian imports from Great Britain smounted to no less than £724.896,- 000, and, if it were possible to exclude all imports from Great Britain, undoubtedly a very heavy blow would be struck. On the other hand, Italy exported to Britain during the same) period £881,595,000. so that if the latter retaliated with a similar system the trade balance of £40,000,000 would be the real sum involved.
That, however, is not the main consideration, the fact is that Italy is far less able to stand severe blows fo her export trade than is Great Britain ud in this proposed game beggar-my-nelghour there appears fo be little doubt az to the actual result. In any event Signor Mussolini adopting a theory, which a large number of British economists have Jong held, that a boycott of Ttalian goods. with the consequent severe Insrease in unemployment and the stop-Page of factories, should be more effective than the' application of me complete sanctions,
Text read from the printed page and cleaned; old type leaves the occasional error.