Evening star., 1923-08-02
ITALY PLANS TOPAY
WAR DEBT TOU.S.
Mussolini Declares Obligation
VIII Be Met, But Seeks
Favorable Terms.
BY DAVID LAWRENCE.

By CabIe to The Star.
ROME. August 2.-Italy. uniika
France, has promised to pay her war
debts to America, irrespective of
whether any reparations arc forth
coming from the enemy powers. Italy
| Is weaker, from an economic view
point, than France. but she makes no
conditions about her promise to nav.
The Italian government" said Pre-
mier Mussolini to the writer, has de-
clared 1t will meet the obligations
completely because we have set our
signature down and are not adyo-
Gates of the scrap paper theory.
Naturally, as the United States has
given relatively good terms to Great
| Britain. Italy expects to be given
terms proportionate TO her economic
strength"
J Want Easier Terms
| In other words, the Italians wish to
pay, but they want the terms made so
that the debt can be distributed over
period of years consistent with their
! capacity to pay. They also want in
terest charges that are not burden
some simply because the period of
payment may be lengthy.
Several months ago the idea of Italy
! paying anything on her debt to Amer
| lea was usually dismissed as fantas-
| tic. Overwhelmed with debts and torn
asunder by internal difficulties, the
prospect of paying any foreign debt
! was not worth discussing. The Amer
lcan government, in the last few
! months. however. has been able to
settle its terms with Great Britain.
and this has stimulated American am
! bassadors elsewhere to urge other
countries to follow Great Britain'S y
! example.
| MussoIini is Aided.
| Italy recognizes that first of all she
must regain the confidence of Ameri-
can capitalists and that step in the
direction of paying the war debt
would make a profound impression.
AS an instance of this policy of cur
rying favor with America there has
been good deal of wining and
dining of American business men
who might be presumed to exert their
influence when they get home from
their travels.
Words spoken by the American
Richard Washburn Child supporting
the Mussolini government come as a
natural sequel to the latter's promises
| to pay her debts. There is no doubt
that Mussolini has profited internally
by the words of Child as well as by
the words of President Harding. which
were reproduced in every Italian
newspaper from one end of the Italian
boot to the other.
IfnIy IN
Externally the Italian government
under Mussolini also is playing d
lshrewd diplomatic game. Originally
the Italians were inclined to favor
their latin associates. Mussolini
likes France for sentimental reasons,
as that country harbored him when,
as a. socialist fleeing from the Italian
police, he needed an asylum.
But Frances Ruhr policy has in
tCred 1taly's economic position by
depriying her of coal. Moreover,
Italy being weak in manufactures
wants TO buy cheap and the virtual
,suppre ssion of German trade has COM
PEELED Italy TO buy from countrie 8
where the rate of exchange is higher
Great Britain and even closer to the
! United States. MuSsolini entente with
, Washington will unQuestionably have
an effect on the European situation
! and perhaps on American foreign
; policy a ; well when the hour of reck-
oning on German reparations finally
is reached