London, June 6.
The Allied contraband control policy at Gibraltar was being reconsidered by the British and French Governments yesterday in view of he breakdown of Anglo-Italian contraband negotiations last week.
it was felt here that the Allies would probably tighten restrictions against Italian shipping in the Mediterranean, which up to the present nave been slight, according to semiofficial sources. Ilalian ships have not been haled by the contraband control recently.
Meanwhile, London banks reported that during the past for might Italian balances in England have been transferred to the United States and Switzerland, leaving only irreducible minimum balances in England for day-by-day transactions, This development is in marked contrast to Italian policy last September at the outbreak of the European War when Italian institutions were reported to have no unsecured credits in London, Coal exporters in Newcastle reported yesterday that shipments of coal to Italy have been resumed, Shipments were suspended last week when Anglo-Italian negotiations broke down in Rome.
Coal sales by South Wales exporters to Italy, however, have not been resumed on the grounds that heavy French demand is absorbing the entire output.—United Press.
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