New-York tribune., 1921-11-13
spseial Correspondence Of The Tribune


ROME. Oct. 10.Although only a
month has passed since the 1talo-Ger
man commercial treaty became effec-
tive, German goods have filled the
shops to the detriment Of Italian-made
goods, as, owing to the low exchange,
the German article can be sold with A.
larger profit and at lower price tban
the Italian make.
The Italians themselves realize that
the German manufacturers had the
goods ready for shipment, awaiting the
signing Of the commercial treaty. As
wholesale prices in italy were still
high, the shopkeepers willingly took ad-
vantage Of the offers of German trav-
cling statesmen. Not only were the
prices quoted half those demanded by
Italian firms, but the terms for pay
ment were so different from the cash
on delivery insisted upon by home
manufacturers. All bills contracted
with German firms are based on the
easy payment system. In three months
after the delivery of the goods the
buyer must pay onc-third Of the bill,
which need be paid in full only in a
years time.
Ever since the war foreign firms
have demanded cash on delivery, which
in many cases prevented Italian houses
from importing French or English
goods. The pre-war system, now put
into force by German firms. has prac-
tically closed the market for French,
English and American goods. Busi-
ness men here say that the German
firms run no risk Of losing their money
or their goods, as in this case, they
are backed by their own board of trade,
which has followed the old system of
making good any loss OF German firms
trading abroad providing they obtain
the necessary permit for doing so.
Italians Do Not Benefit
AS Italian manufacturers do not
benefit by a similar privilege in their
own country, but are rather heavily
taxed if their expectations are sue
cessful, the treaty for them is not the
blessing it is to the Germans. Be-
sides this, the first article in the
treaty, which consists of five parts,
allowing all German goods into Italy,
holds clause by which German Gus
toms will allow fifty-six different
classes Of goods to enter Germany,
"after having ascertained that there
is no need for them in Germany" 1t
is this first article which annoys
Italian manufacturers, as their home
made articles have not been protected
in a similar way.
The second article deals with the
passing of laws for the protection of
certain goods. Both Italy ana Ger
many agreed that in case such laws or
should be given to either government
and that all goods which fell under
the new stipulation and were in transit
should be allowed free entrance and
not stopped at the frontier.
The third article binds both parties
to send with the goods a permit of
origin, which must be accorded to ex-
porters by their respective govern
ments free of charge.
BY the fourth article Italy and Ger
many agree that this treaty, signed on
September j. should last for nine
months, and if not denounced a month
before expiration of the term should
be automatically renewed for another
nine months.
Provides for Arbitration
The last and fifth article concerns
the possibility of differences of opin-
ion which may arise from the interpre-
tation of this treaty. In this case arbi-
tration must be settled by an Italian
and German, appointed by their re-
spective governments, who must meet
and discuss each case. Should they
not agree or decide on another arhi-
traitor. they must place the matter un-
der discussion before the President
of the Swiss Federation.
Although the Italians philosophically
admit that, owing to the present crisis,
they cannot produce many things which
they produced before the war, they feel
that as this is only temporary phase
through which the Italian workman is
passing, their government should, in a
way, have protected many classes of
goods now included in the list of ar
ticlcs which Germany can export into
Italy. Not only does this list, forty
six in number, include oils, both lubri-
eating and mineral, but it covers al
foodstuffs and shoes. The Italian mar
ket is now filled with trimmed hats,
women's clothes, habcrda sherry, en-