Italy and Geneva The Italian military successes have brought the
relations between the League of Nations and Italy to their most critical stage. Signor Mussolini, with much of Abyssinia in his hands and the capital of the country at his mercy, is likely to crown his lawless aggression and his lawless and barbarous recourse-to gas by demanding terms which the League of Nations cannot approve without betraying every ideal embodied in the Covenant. The temptation will be great, and Mr. Eden may be left almost alone in resistance to it. Italy has already made her signature to any future contract valueless, -but that. so far destroys only her own credit. If the League condones Italian action by a despairing acceptance of the .fait accompli then the basis of all future agreements is destroyed, for pledges between States will have been shown to be something that can be torn up with impunity. Italy's military successes may give a very false view of her situation. • The figures published at Geneva show that -economic sanctions, slow to take effect because of the decision that existing contracts should be carried out, have cut Italy's external trade in half and reduced her gold reserves far below danger-point. Her jubilation over the capture of Dessie may yet be premature, for her financial situation even before the war began was deplorable. The League has no choice but to main- tain and intensify sanctions till a settlement embodying no reward for aggression is reached., •
