Evening star., 1925-11-13
HOPES OF FRENCH
REVIVED BY TERMS
GIVEN TO ITALIANS

Continued from First Page
made by waving interest for the first
five years. during which time $4,000,
600 annually shall be paid on the prin
cipal, and beginning interest at the
sixth year at the low rate OF one
eighth OF ] per cent. This rate con
tinues for 10 years and then increases
for successive 10-year periods TO one.
fourth Of l per cent, one-half OF l per
cent, threefOurths of ! per cent, ]
per cent and the last seven years at
2 per cent.
Under this arrangement, and fol
lowing system of payments on prin-
cipal which follow ''proportionately
the same schedule of annual install
ments over 81 years as the British
agreement, the American Government
will receive the original principal
plus about so per cent Of that princi
pal in interest, or a total amount OF
81, ,407 900 900.
Principal in Full.
The basis Of settlement" said the
formal announcement, has been re
payment OF principal in full and pay
ment Of interest in accordance with
The approximated total payments
will be as follows: First five years
$5,000,o 900 annually on principal only
from sixth to fifteenth year. .i4 900, ,oot
to s1s.o00.00O; from sixteenth e
twenty fifth year. $2o.000,00o TO s26.
100000: twenty sixth TO thirty-ffth
year, $31 900 900 to s3s, ,000. 900; thirty
sixth to forty fifth year, s43 100000 &c
$50 900, 900; forty-sixth to fifty fifth
year, s56 900 900 to $67 ,0000 900; fifty
fifth TO sixty-second year, $73 100000
to $50 900, 900.
Italy's demand for a security clause
in the agreement was refused by the
American commission, IL was ex
planned officially The Italians felt
that such a clause was necessary in
any agreement, in order TO guarantee
that in the future, should they be un
able to meet the payments, the matter
might be reopened. The Americans
had refused such a safety clause &c
the French.
Postponing Of Payments.
There is provision made, however
in the agreement, somewhat similar to
those included in all other agree
ments. for postponement Of payments
on principal should economic ex,
igencies necessitate. In the British
a agreement it is provided that principal
payments may be postponed for two
years, but must be paid on the thlrd
year. including accrued interest. In
the Italian agreement somewhat more
lenient terms were granted. Payments
OF principal may be postponed Tor
two years and may be paid in the
third and fourth year, with interest
at Az per cent.
THE basis Of settlement" said the
formal announcement. has been re-
payment Of principal in full and pay
ment Of interest in accordance with
the capacity OF Italy TO pay.
The American commission an
nounced il had made a most exhaus-
tive examination OF Italy's fiscal and
economic situation" adding: Italy is
poor in natural resources. The visible
balance OF trade is adverse. Food 10
support her rapidly increasing popu'
lation, coal. oil, iron and copper have
to be imported. Her future depends
upon the development Of her indus
try and the labor of her people.
ut is felt" said the official state
nent, that the settlement lays as
heavy a burden upon the Italian peo
Pile as we are justified in imposing and
represents Italy's capacity to pay"
Statement by VOlpi.
A statement was also issued on be
half of the Italians, over the name Of
Finance Minister Count Eolpi. as fol
lows:
The Italian delegation brought
over from Italy g. complete study OF
Italy's economic and fiscal situation
With the American commission the
Italian delegation has gone over its
Recommendations with great thorough.
ness, and / believe that the American
commission has been impressed with
the justice of Italy's case. L feel that
we have succeeded IN presenting a
true picture of Italy's situation to the
American commission in the IL days
we have been with them, but I know
the difficulty Of carrying this picture
20 the 10, 600, 900 people OF the United
States. I trust that the American
public will itself study these matters.
The entire Italian delegation has
been impressed with the fairness OF
the American commission and their
evident desire to do justice to Italy
and to protect the American taxpayer
Recognition has been given to the
present difficult situation and conf
dence has been shown in Italy's fu.
ture. The settlement as finally made
is larger than we thought in the begin
ming we could agree to. Italy has
however. always met her international
obligations, She has done so in this
case. The settlement is a long step
toward the restoration Of economic
peace in Europe"
Italy having reached an agreement
for funding her debt. the belief was
held in Washington today that France
the only remaining debtor owing
America more than a billion dollars
will now surely make another at
tempt at settlement soon, following
the recent Caillaux fiasco.
Although French official circles had
repeatedly stated that another mis-,
sion would come to the United States
to take up the negotiations where
Caillaux left off, last month. there
had been persistent reports to the eff
feet that France was watching closely
the outcome of the italian negotia
tions. with the hope that If Itaiy
failed to fund then France might post
pone still further any attempts to
come to a settlement with the United
States.
French comment on the Italian ne.
gotiations during their progress here
was at times. notably pessimistic as
to 1taly'S hopes for settlement. This
comment was noted by officials here
with some concern. There were re.
ports in Washington that already
there had been talk Of the possibili-
ties OF an international conference in
Europe to consider the question of
interallied debts, in case Italy failed
to fund. France, it was said, would in