Evening star., 1925-11-08
SECURITY CLAUSE
IN WAR DEBT PACT
IS ASKED BY ITALY
Demand That Blocked
French Settlement Insisted
Upon by Italians.
VIEWS OF CONFEREES
ARE STILL FAR APART
Sessions Will Be Resumed Mon
day. When Rumanian Farley
Also Opens
BY II. Is. ROGERS.

BY II. Is. ROGERS.
Italy has asked Of the United Stats
? security clause in any funding asree-
ment reached on her debt TO his Gov
ernment.
This clause was learned last night
to be one of the principal contentious
of the Italian commission, whose ef-
forts to fund the $4,000 900, 900 debt
will he resumed at a meeting this al
ternoon of subcommittee from the
TWO governments.
Tomorrow morning a Meeting hs-
tween the recently arrived Rumanian
commission and the American cow
mission will formally open neSotia-
tions on the Rumanian debt to the
United States The two negotiations
will then be carried along together.
Insistence of Italy upon a security
clause assumes unusual Importance
at this stage Of the negotiations. a.
it is known that the two governments
seem to be closer to failure than :"
success in reaching an agreement.
There were some negotiators who
insisted last night that there still re
manned much hope, but II IS known
most of the Italians. there exists very
little feeling that success is possible.
The two positions are still far apart,
N spite of long preliminary prepdra-
tions, and elaborate presentation by
Italy Of her economic status and
ability 10 pay. and an entire week
OF negotiations.
Reparations Not Issue.
Italy feels she must have the Sc
curity clause TO guard against un-
3 foreseen and untoward developments
in the future. such as crop failures
or other unfortunate sethaCks. She
wants Il security clause written into
the contract which will Stlpulate
( that should Italy find it Impossible
to meet the terms of the agreement
/ the entire matter will be opened UP
again.
! 4 security clause proposal was one
of the things which wrecked the
Franco American negotiations, Just
preceding the arrival of the ltailans.
/ A,thouch there had been some Amer
ican sentiment in favor Of the secur-
ity clause for France, 1t was the
form, demanded by France and in con-
nection with the other offers from
that country that it was rejected.
Fear Of the failure of German repa-
ratiOnS Denlnu lNe lciNii
r7,and. but the Italians are asking TOR
q similar qualification. not so much
10 protect them in case their small
income from reparations might cease.
but on account of the danger lheE
feel turks in some of the major iaC'
tors of their economic Stualloii'
ReparationS provide much-n@eueQ
but not considerable. quantity oil lta'-
ian income.
some influential American figures
at the Capital are known 70 pc IN
favor of an understanding with ltalN
that their debt question may be open
ed at any time they are unaoie 10
meet the terms of an agreement.
These leaders. however, would NOT
favor a written stipulation in the
agreement.
In some quarters last night one
difficulty in the way OF granting
security clause to Italy was seen IN
the fact that this was refused the
French. on the other hand, II was
pointed out that the economic conoi-
clifton of Italy is recognized by ooth
parties to the negotiations as pelhe
far below that of France
How much consideration has been
,riyen to the demand of the ltallans
60 far is not known. but II IS admlt'et
10 he one of the subjects which VIII
assume major Importance.
Got Scant Aid in War.
One of the arguments being al.
I vanced by the Italians IN deIense ol
their plea for special consloera,ioh
reyoIves around the fact that ltalaN
! troons held the front against the
enemy in the World War without as
] sistance from any American troops.
! ON the Western front in France. II is
declared, the American Government
spent millions of dollars supporting
/ American troops in detendlns tn@
/ common cause. The American 'IoV-
ernment. however, loaned cash 70
italy TO support Italian troops on the
! Italian front. whereas had American
/ troops been placed there with Amerl-
can financial support the present
Italian debt would he nowhere near
/ it's present size. it is pointed out.
Although there were no ofhcial
meetings scheduled yesterday by the
! Italians with the Americans, two oc-
casions presented themselves when
the principal figures met. The finance
minister Of Italy, Count Nolpi, head
of the commission. called at the
! Treasury during the late morning and
vas cIoseted with Secretary Mellon
and Undersecretary Winston for some
time Secretary Hoover also was in
! conference with Secretary Mellon ,iur-
: iOc tho morning. Botn the Alllel-
! ican and Italian Debt Commissions
/ uere guests at luncheon at noon at
the British embassy.
! What matters were discussed at
! these meetings were not revealed.
Earnest efforts are being made, how
! ever. to go over the entire ground. in
order that no possible approach to an
agreement may be overlooked
| L. S. Policy Hands Of"
! Additional intimations that Eurc.
mean conference to consider the ques-
! tion of debts probably will be called.
! in case the Italian negotiations fall.
| appeared last night, when 1t was
learned that the subject has been un-
der discussion by diplomats in Europe
! for several weeks. First indicatio
/ that such a possibility was in prospect
/ came during the past week here in
| Washington and have been the sub
! ject of much discussion. Indications
have come again from high American
sources that this Government would
, continue its past policy of hands
/ off, such a conference. The United
! States would not accept an invitation
| to such a conference were il rendered,
| 1t is understood. Without the United
I States one of the principal creditors
0-ontint1ed ON pa re . Col,n,n ~