The Birmingham age-herald., 1921-03-10
ITALY PREPARING
 ID L|QU|DATE HER
 DEBT ID AMERICA
To RehabiIitate Internal Finan- ciaI Condition and Resume Production of Staples,
 Says Ambassador
Ky Associated Press

| Washington March 9.---Italy is pre- pairing through rehabilitating her in- ternal financial condition, setting in motion again the machinery of com mercial relations and resuming the pr oduction of staples of commerce util- ized in her foreign trade to discharge her debt to the United States, Rolando Ricci, the new Italian ambassador, said today in answer to an inquiry. The dcbt, according to the last annual re- port of former Secretary of the Treas ury Houston, amounts to $1,631,000, 900. The ambassador in statement said:
 "The following is my precise opinion in regard to the American loans to Italy and the payment Of said loans by Italy;
 Italy must, through revision of the accounts. ascertain the exact amount of her debt and then ask for a convenient period of time within which to pay it. This condition is essential; because, otherwise it would be impos> naEcial condition Which Is in it's turn
 
 her debt.
 WANTS EQUAL SHOW
 'Italy would naturally ask the pre- ferred nations treatment, i. e., Italy would ask that in case of a cancella, tion or partial remittance of debt to ahy other nation the same treatment be granted her Like the United States, Italy entered the war without being forced to do so by any aggres- sion, and while the nations that had been attacked were in very difficult straits, Italy got nothing out of the war except her natural boundaries: and such boundaries Italy conquered with her own military effort, which eliminated with the victory of vittorie veneto.
 Italy has, therefore, a political at titude and a public sentiment which agree completely with the political att titude and public sentiment of the United States. This I think and nope, will facilitate my work here. I ac- cepted the charge of doing this work with this understanding of the situa- tion."
 The ambassador expressed confY- dence in the success of the efforts that are now being made to bring about a complete resumption of the formerly large and important trade relations be- tween Italy and the United States par ticularly the Italian export trade with this country. which would be large factor in meeting the financial obliga- tions of Italy to America. He indi cated, however. that 1t would not be possible at first to apply the proceeos of the sale of Italian products import ed into America directly towards the of the debt to this country.
 INTERNAL FINANCES FIRST
 It is essential, the ambassador point- ed out. that the internal finances of Italy should be set on flynn founda- ton before the country could under, take to settle it's external obligations. Se' eral series of revenue in forme, years he explained, had been lost such as the large sums derived from the tourists. the heavy remittances that had come from Italians in the United States and the revenue from the sales in this country of such Italian staples as fruits. olives, oil and wines.
 As war measure. the ambassador l continued, his government stopped the exportation of oils. fruits and wheat products, such as macaron Int he added that this prohibition was now to be removed So that these staples might again figure as important fac- tors in trade.
 Altogether, he said, the prospects were bright for restoration of com mercial relations on the former basis that would eventually make possible a financial settlement of the existing heavy indebtedness.
 Although no intimation has come from the treasury of a disposition to discuss the questions involved in a rek adjustment of the allied powers to the United States. it is understood to be k by the heads of the foreign embassies here as subject that must very soon be taken under consdera- tion in order that the House ways and means committee and the Senate com mittee on finance may be in possession of facts regarding the probable re csipts of interest on account of these foreign debts as a basis for their own of the amount of revenue that must be raised by tariff and In ternal revenue legislation in this coun- try to meet it's budget.
 Baker Now a Colonel