Evening star., 1925-11-15
,S5,199,OOO IS PAID
ON DEBT BY ITALY
At PARLEYS CLOSE
Unusual Action CIimaxes
Funding Agreement Long
Before Pact Is O. KID.
BONDS PURCHASED HERE
FOR FIRST INSTALLMENT
Wants Something Definite to Show
Good Faith" Volpi Says,
Explaining Move.


Italy wound ur negotiations for pay
inc her debit To the United States yes
terday. not only hy signing the agree
ment reached Thursday, but by Vir-
iually turning over 10 the United
States. both a cash payment Of more
than $4,000 and bonds representing
the first annual payment of $5.oOO.OO0
which. under the accord. would not be
due until June 10, 1926.
This unusual procedure. of prac-
ticalIy paying the first installment be-
fore the ink was dry on the agree
ment. and long before it could be
ratified either by the Italian Parlia-
ment or the American Congress, was
interpreted as remarkable move by
Italy to demonstrate good faith.
Exactly what took place behind the
closed doors of the debt conference
room yesterday during the short time
when the agreement was signed has
not been revealed in its entirety.
Nolpi Explains Action.
Finance Minister of Italy. Count
Nolpi. at q conference with the press
yesterday afternoon. explained II as
banding over to the American Com
mission a check for s., 900 900. repre-
Eenting the amount of the hrSt pay
nent on principal.
At the Treasury Department it was
explained later. that cash in the sum
OF S199, 1864 was paid. in order to
bring the total principal of the debt,
of the effective date, June Is. 1925,
60 the round sum of S2.O42 200, 900.
Furthermore, it was explained, ar
nj of cd
Through local fina ncial institutions
Cor the purchase of securities of the
United States by Italy. to be turned
over to and held by this government
for payment of the first inStallment
OF the new agreement.
Count Nolpi, speaking through an
interpreter, said his commission had
insisted on the acceptance by America
of the CHECK" for s5 900 900, although
both Secretary of the Treasury Mellon
and Secretary of State Kellogg had
hesitated to accept it at this time.
Follows Practice.
Italy was following the practice
SCI by other debtor powers and au-
thnriZed in all agreements in arrang-
Ing for the purchase of United States
securities TO be used in payment Of
her obligation. but Italy went one
step further. She planned before the
Italian commission left the National
Capital last night for the securities
to be turned over TO this Government
months in advance Of the due date and
before the ratification. BY doing this
the Italians took a step never at
tempted before in the history of
funding arrangement here.
One of the reasons given by Count
Nolpi for handing over of the check
in nd
Italians wanted something definite
10 conclude the negotiations. which
they consider have been highly sue
cessful to both governments.
Concerning the possibility of Italian
industry asking additional loans in
this country. Count Nolki said such
moves would be private matter en-
tirely. But both the Italian and
American Governments knew he
added. that any such loans would not
be large. and would be used entirely
IN new construction. Only those loans
would be asked in this country, Count
Nolpi said, which the Italian govern
ment knew could be repaid. because,
he added, Italy keeps whatever obli
CATION she assumes"
MussoIini Gratified.
The "gra tification" of Premier Mus
Eolini OF Italy was conveyed to the
American commission at the last meet
Ing yesterday. when Count Nolpi
read a cablegram from Mussolini as
follows:
Il desire to express my full appre-
citation of the settlement reached,
which represents a happy concilia-
tion Of interests, as we'll az the
Acknowledgement of the justice of our
case and of our real capabilities.
Please convey To the members of
the American Commission the express
sion of my qualification. vOicing the
sentiments of the Italian people.
The good will shown by the Amer
lean Commission in reaching a settle
ment, evidences their appreciation Of
1taly's efforts during and after the
war.
The conclusion of the agreement
will help make the bonds of friendship
between the two countries still closer.
" will be A powerful stimulus for the
development of economic intercourse
end relations between Italy and the
United States. adding a favorable ele-
ment to general stablization.'
Ratification Forecast.
The agreement. Count Volpi pre-
dicted. without doubt would be rati
fed by the Italian Parliament.
In reply to the Italians, Secretary
Mellen said: You came here to dis
close to us all of the factors involved
in Italy's capacity TO pay. We met
YOU with an open mind and the two
weeks fun discussion of your situa-
tion has brought the two commissions
together upon what we believe is 4 set
tiement fair TO each nation. BY the
agreement We have just signed, Italy
recognizes To her full capacity the
Integrity of her international obiiga-
fions we have eliminated in the rela-
Iions of the two countries a matter
disturbing If left unsettled, and we
have adde's one more stone to the re-
building % EurOpe's financial struc-
ture.
"Will you express to Premier Mus
sOlini our appreciation of the char
Rcter of the delegation which he sent
10 America and of the will to reach
an agreement with which they were
inspired
Mission Leaves City.
The Italian delegation left Wash
Aington last night for two separate
Count and Countess
VDlpI. Undersecretary of State Grandi
I'd Secretary Vitetti Of the Italian
ibAesy planning to go to Buffalo, To
niagara Falls, and the rest of
arty going TO New York City.
3nued on Page 8. Column D.,