LETTERS TO THE EDITOR
[Correspondents are requested to keep their letters as brief as is reasonably possible. The most suitable length is that of one of our " News of the Week " paragraphs. Signed letters are given a preference over those bearing a pseudonym.—Ed. TILE SPECTATOR.]
THE GOVERNMENT AND SANCTIONS
• [To the Editor of THE SPECTATOR.]
iia,---Does the present British Government mean business With regard to the application of economic and financial sanctions ? Unpleasant doubts are raised by the following comments in the Financial News of October 29th : " it is perfectly legal to buy an Italian cheque it is illegal for the buyer to endorse it. • This means that the buyer will be unable to re-sell the cheque, though with an open endorsement be will be able to have it collected. It is difficult to see why the endorsement of bills payable at sight is forbidden while their l'ureiiaso is permitted. . . .
"As far as it is possible to ascertain, it is not illegal to buy lire, 'whether for spot or forward delivery. Nor is it against the terms of the decree to deal in foreign exchanges with Italian banks or Italians in general. . . . If a British bank buys spot lire against lerward lire from an Italian bank the transaction really amounts to'swapping a. sterling credit for a lire credit. If done on a large scale this would lead to the granting of facilities, but in the existing tZenditions. it is simply unthinkable that any London bank should engage in such operations on a large scale. It was wise, therefore,. In leave forward exchange operations out, . . . since their pro- hibition would have penalised legitimate business interests."
Clearly, with a subject so technical, and in the whirl of an election, it is very hard for the ordinary intelligent man or Woman to exercise effective vigilance. Yet vigilance is essential. It would be dangerous to the League—and to all that depends on it—if, after Mr. Eden has given an impressive lead at Geneva, authorities at home were to make the applica- tion of the sanctions a farce. May I therefore suggest that
:you do your readers the great service of printing an ilium inat- 1ng expert study of the sanctions measures ?—Yours faithfully,
• 18 Gordon Square, W,C.1. JONATHAN GRIFFIN.
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