THE CHINA MAIL, APRIL 22, 1940.
THE WAR AND ITALY
YOU GET The Economic
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HO-HUM - WELL- I MIGHT AS WELL GIT UP AN' PACK EVERY- THING AS. WE ARE LEAVING MIAMI FOR NEW ORLEANS THIS AFTERNOON -
I'LL HAVE EVERYTHING PACKED
BEFORE MAGGIE GITS UP.
Dilemma
When the
war came in spite
of
con-
After seven months of war, Mussolini's efforts to maintain peace,sequently, the Italians have found that the first feeling in Italy was one of re- the way of the neutrals is a hard way. lief that the country had been able' And they are beginning to fear that to stay out. Then the Italians began a neutral can only make money out of to look for business opportunities, this war, if, like the United States, it hoping that as neutrals they could sell has the necesssary raw materials al- goods and services to the belligerents ready. and also take away export markets which the countries at war could no longer supply. The shares of certain heavy industries went up 30 or 40 per cent. The country, which had been on the brink of bankruptcy, dreamed of profits which would enable it to restock raw materials, stimulate the gold re- serves and also carry through its own rearmament. In this latter field, the and army needs modern artillery tanks, while the air arm had to put new types into production if it was not to become outmoded.
and they
The story of services is scarcely more encouraging. Italy has a first class merchant marine, but it is hard to sell or rent ships. When they go under the Italian flag, the danger from mines and submarines makes insurance
By-
OUR SPECIAL CORRESPONDENT,
JOHN WHITAKER
Accordingly, when Mussolini Clano "changed the guard," lopped off the head of. Guarneri who had been the Minister in charge of foreign exchange. Guarneri had been told to hold Italy's dwindling gold re-rates go high, and profits are wiped serves at any price, and as a man of out. A smart Milan industrialist placed probity and character nobody got goods purchased in America on the
when he "Rex"
was tipped around him. He carried out his orders literally. Italian industrialists lothed Sumner Welles would travel on her, him for his hardboiled attitude, which and then cancelled his war risks in- kept them short of raw materials and, surance. But Welles cannot ride every when the war came, Mussolini dis-Italian ship on the high seas, and for political reasons Rome is unwilling
voys.
that
covered that Guarneri had been so hardboiled that neither the air corps for them to travel in the Allied con nor the army has any gasoline stock- ed, Guarneri would not even release gold or dollars for any of the armed services except the navy.
Guarneri was replaced by Riccardi, who had the confidence of the industrialists and who won their applause by letting up both on gold and on autarchy. Riccardi argued that there was no use to keep gold when war materials were wanted. Accordingly he set out to buy raw materials. But, in many instances, he could not get them at all, and in al- most every instance he found the prices too high. It became clear then that the mistake had been made before the war. If Guarneri had bought raw materials instead of holding gold all the summer,. Italy would have made a killing. The country's holdings abroad are estimat- ed at about twenty-five million dollars, while the gold reserve is placed be- tween two and three billion liras. Both would have been multiplied several times had they been converted into raw materials before the war.
But when Riccardi tried to buy in the primary markets, he found that Italy was arriving too late. How could Italy place orders for cotton in Egypt or wool in Australia, when Britain was buying the whole markets of both out- right? How could Italy compete for purchases in America, when the Bri- tish and French were already there with tremendous gold reserves and the urgency of war, which would make them outbid. any; rival buyers? Riccardi's enthusiasm for war terials evaporated into thin air, and the word autarchy found its way back into the newspaper headlines.
THANK GOODNESS EVERY THING.
PACKED » »NOW MAGGIE OUGHT TO BE PLEASED.
ma-
Italy is faced in short, with a very disagreeable dilemma. Either the Ita- lians must co-operate with the Allies, or they will be threatened with a shortage of vital raw materials and ultimate bankruptcy. For, in the first place, Italy cannot keep pace if she must bid against the Allies in the world markets and, in the second, · Italy cannot maintain herself if she alienates the Allies and Torces them to cut down on all seaborne goods coming to Italy through the Mediter ranean, whose entrances are controlled by the British and the French.
That
But Italy is determined-at the mo- ment certainly to remain independent of the Allies. That means there are not going to be any real profits for the Italians. Goods are still being manu- factured for France, but Italy has rup- tured the British contracts. means that the stocks that went up 30 and 40 points are coming down again. That means that nobody is willing yet to extend sizeable credits to Rome. And yet it is a dilemma for Mussolini, because Mussolint and Ciano must ask themselves: if
do
our
lose our independence and gear of economy to that of the Allies, will the Germans not march in against us? These two men know better than most that the way of a neutral is a hard
way,
(Another artlóle follows)
World copyright, 1940, by "China Mall" and Cooperation. Reproduction in whole or part strictly forbidden.
By George McManus
YOU IDIOT. WHAT ID YOU PACK-
OTHER
1940, King Pracines Fyodícios.
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