The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1925-06-25
FOR
LOW RATE
AND LDVI
TERM
Mellon, Representing Y. =,
win Hold 10 British Pact Is
Model for All Others

By II. X. RIEYNOI .Ds.
Negotiations to agree upon
terms for the payment 81 the
81, 900 100000 Italian debt Is the
United States opened 1T the
Treasury Department today.
The Mussolini government was
represented BY GiacOmO - Mar.
0tino, Italian ambassador mere.
Mario .Albertil, IN officer Of
Credito ItaIiano. one VI ItaIy's
largest banks; August Rcsse,
counsellor Of the Italian embassy,
and Romolo Angenone, Italian
commercial attache who acted u
interpreter.
The United States was repre-
scented By Secretary of the Treas
ury Mellon, chairman 81 the
Anerican Debt Funding Commits
sion; secretary 81 State Kellogg.
Senator Reed Smoot Of Utah and
Under Secretary 81 the Treasury
Winston.
Discussion 81 Conditions
Today meeting. which marks the .
first formal move on the part Of
Italy to discharge hsr war obliga-
lions t6 the United States was to
be given over 10 general discus.
sion of the entire debt situation.
with the Italian repre- santativee out
lining the financial problems =
their government and its ability 70
pay, and with Secretary Mellon
enunciating thef American policy
with respect to the funding Of the
debts.
Nothing tangible was expected to
BE- accomplished III the first session
except TO give the rep-esenta lives Of
both governments a clear idSa Of
the plans and desires uf the Other.
With the srOund Work for the
negotiations thus established. tile
debt commissioners -an set DOWN to
the discussion OF terms and the
Italian funding proposal can be con-
siderAd.
Moratorium Ii Expected.
In advance of the openine Of for.
NAL negotiations. Ambassador Mar
tino has declined 10 make public
the terms which he viii submit TO
the American Debt Commission. btt
they are understood to snsists above
all, that Italy be ac1Orded q mara
toraum at the beginning on the pay
ment OF principal so lnat the fund
ing agreement will not go into Sc
tuaI operation for ten years or 30
after it Is ratified.
1t IL expected, too, that the
Italians will not fail to ask TOR In
terest rates lower than per ce0t,
despit7 repeated announcements by
this Government that per cent
is the absolute minimum below
which Congress would not 30 in
ratifying foreign debt agreements.
1T has been put up to the Italian
negotiations, however. TO get the
bast terms possible, and they will
be expected by their chiefs at Rome
to ask for everything in sight.
while being prepared tOsdrop back
when there appears to be no. chance
of getting the United States to agree
to better interest rates than those
provided for In the Anglo-Amertcan
debt funding agreement.
This agreement is looked upon by
the Americon Commission as
model
One of the first things to be
taken up in the conference was the
exact amount OF the Italian debts.
The foreign borrowings made
during the war were often effected
hurriedIy and without great for
mality, making 1t necessary since
for agreements to be made in some
cases as to just how much liz due
the United States.
According to- the Treasury. the
status OF the Italian debt is now
as follows:
obligation l,etbe69lgIys
Interest accrued. 4s0,ST4SS4.Sl
Total indebtedness. 2.1ss,S4ass3.57
Payments on principal 1StS6z.St
Payments of INTEREST,". 81 5e3Sb
The Italian debt il the second
biggest unfunded obligation owed
the United States.
France leads with q total debt Of
81, 210 .656, 1897.
the war was the 81, 500. O0O, 900 owed
by Great Britain, but that has been
funded.
After the funding agreement with
Great Britain was completed. there
was a IulI in the debt collecting
activities OF the United States.
few months ago, however, shortly
after Kellogg became. Secretary OF
State, notices went out to MI Euro
pean debtors that settlements were
desired. TT was as result uf this
notice that the negotiations with
Italy have been started.