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Abyssinia Crisis. The Abyssinia Crisis was a crisis in 1935 originating in the so-called Walwal incident in the then ongoing conflict between the Kingdom of Italy and the Empire of Ethiopia (then commonly known as Abyssinia in Europe). The League of Nations ruled against Italy and voted for economic sanctions, but they were not fully applied.
This incident resulted from the ongoing conflict between the Kingdom of Italy (Regno d'Italia) and the Empire of Ethiopia (then commonly known as  Abyssinia  in Europe). Its effects were to undermine the credibility of the League of Nations and to encourage Fascist Italy to ally itself with Nazi Germany.n January 3, 1935, Ethiopia appealed to the League of Nations for arbitration of the dispute arising from the Walwal incident. But the league's response was inconclusive. A subsequent analysis by an arbitration committee of the League of Nations absolved both parties of any culpability for what had happened.