Evening star., 1925-11-05
WORLD WAR DEBT
PARLEY limited IF
NEGOTIATIONS FAIL
International Meeting De-
cIared Likely if italian Dis
cusSions Are Futile.
S3O,OOO,OOO ANNUALLY
MAY BE ROME'S LIMIT
Definite Offer to U. S. May Be Made
Tomorrow-Terms Are Kept
Close Secret.

While negotiations over Itsiy g
3 600 600 on0 debt tn the United states
proCeeded slowly today without, II was
understood, any definite offers from
either side. indications came from
highly relia bic sources that in case
these negotiations fail. there will be
called in Europe a general conference
on the whole international war debt
problem.
This prospect loomed seriously today
above the Americans and Italians who
are struggling to find a way TO
reconcile the admitted low capacity
hf Italy TO pay with the expected de-
mands of the American Government.
France having failed To reach an
agreement with the United States,
Belgium having not yet ratified the
agreement reached with the Ameri-
can Government and Italy facing ad-
miutedly a problem, the seriousness
of which today seemed increasing
the situation as regards the prospects
for clearing up the international debt
problem was said to he far from
bright.
S3O, 900 900 May BE Limit.
The Italian commission probably
the next day. according to most re-
liable indications. What this offer
will be is being guarded as close
secret by the commission. But. at-
rording to some indications. Italy has
already decided that she cannot pay
to the United States during any one
year a sum in excess of s30.000,0o0.
The actual negotiations at the
present time have taken the form of
IN foae F.f
the two governments. The American
commission was TO have met today
some time. Up to 1880 o'clock there
was in session at the principal con
ference room ? meeting between the
principal members of the two com
missions. Exactly what phases Of
the debt were being discussed was
not revealed prior to it's adjournment.
L. s. opposes Plan.
The prospect of an international
conference to take up the question of
interllied debts in Europe broke to-
day with significance OF the utmost
seriousness. Shoul6 such q confer
enCe be held, it was intimated in some
quarters here, the United States
might be invited to participate in
some manner, at least in the role of
an observer.
The American Government, how
ever. has consistently taken the posi-
tion that inter-allied debts are not a
matter for an international confer
enCe but are a direct concern between
the various creditors and debtors.
President Coolidge and Secretary Mel
lon have both let il be known that
they do not favor any such treatment
of the debt problem.
IT,. tnf I.ar7G fQl IL
the conference on inter-allied debts
would be called probably within
short time and would be under the
auspices of the League of Nations,
of which the United States is not a
member. This sponsoring of such a
conference would of itself further COM
plicate any possible participation by
the United States.
Suggestion Is EurOpe'S.
Suggestions for an interallied con
ference to consider interallied debts
have been put forward many times
since the World War from many
sources. Some European powers have
insisted that such a conference would
lie far more effective in dtsentangllns
the web of debts in which practi-
cally every power participating in the
World War finds itself enmeshed
either in the role of creditor or debtor.
From the beginning the American
Government has opposed such auS-
sestion and has continued on its way
Of dealing through its debt commits
sion with each of the debtors singly.
The capacity to pay, on which all
negotiations by the American Gov
ernment with its debtors have been
based, was applied to France and is
now being applied to Italy. The
Franco-American negotiations failed
TO result in an agreement, although
the last offer by the American Gov
ernment for sort of financial truce
during the next five years. during
which France would pay $4,000, 900
a year interest, is still in the hands
of the French government. 1ndica-
tions have come that France will send
another mission here soon to take up
the matter again. French politics,
however, are admitted to be today
in an extremely precarious condition.
leVe totterine.
French Watching Washington.
There were indications. on the other
hand, in Wa shington. however. that
the French are awaiting with great
interest the outcome of The Italia n
negotiations before deciding To make
any further representa- tons to the
american Government.
The Belgian Parliament has not Yet
ratified the agreement recently drawn
Jur the payment of its debt 10 the
nited States. There have been pro
testing voices in boln Belgium and
France against the terms of their re-
specting pending proposals.
In the absence of official informa
tiun as 10 the progress OF the Italian
American negotiations. it was learned
from unofficial but thoroughly reliable
sources today that each commission is
now jockeying after a fashion in
order TO get the other to make an offer
in figures. The Italians first pre-
sented their economic documents out
lining at great length Italy's capacity
10 pay. with the hope. 1t was learned
that the American commission would
next respond with an offer as to what
il might expect from Italy.
on the other hand. it was under
stood that the American Government
was hoping for a definite proposal
from Italy. The four subcommittees
appointed Yesterday were understood
10 be considering only general phases
~ the negotiations without having
been delegated any specific objective
80 work for. There were reports
yron various sources that the com
,nittees were studying the capacity
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