Evening star., 1925-06-25
Funding Negotiations Get
Underway at Three-Hour
Conference.
lENIENT TERMS VITAL,
DECLARES De MARITIME
Capacity of Nation to Meet Obi.
cation Must Be Considered, He
Warns-Meet Again Tuesday.
BY the Associated Press


NegOtiatio for the funding of ths
Italian war debt were set in motion
today at a three hour conference be.
tween an official Italian delegation
ana Tour members of the American
Dent commission. The next confer.
ence will meet next Tuesday.
After todays adjournment Secre-
tary Mellon said he could not reveal
whether the discussions were regard
ed as indicative of progress.
Ambassador de Martino, head Of the
Italian delegation, told the American
commissioners that Italy acknowI.
edged the debt and desired a settle
ment permitting payment over a
period of years.
The Italian ability to pay, he said.
should form the basis for the neeotia.
tlons. He did not outline the precise
terms Italy will seek
Settlement Held Brighter.
Secretary Kellogg opened the con-
terence with an address to the Italian
delegates
We do not minimize the difficulty
OF payment of your external debt"
the Secretary said, but we know
that the only way to settle the ques-
tioh. Whlch unsettled might be a
n
cal structure, and a source of fric-
ton in our cordial relations with YOU.
Is to fund the debt now, taking into
consideration Italy's capacity to pay.
! GU VIII have, am sure, the sympa-
thetlc consideration of the debt COM
mission and of the American people"
Replying. the Italian Ambassador
recounted that Premier Mussolini had
instructed him to remind the Amer
leans that Italy would honor it's In
ternational obligations
The PREMIER he said. has taken
into due account the advice repeatedIy
conveyed to me by members of the
American Government The sooner
the better, said Secretary kellogg to
me, and the sooner the better re-
peated TO me the Secretary of the
Treasury. Prime Minister Mussolini
also has wished to take into consid.
| Grafton the sentiment of the American
public opinion, which is anxious TO
nave the debt questions settled
Estimate Limits to Paw.
But the Italian government wishes
10 reach settlement which it NAV
conscientiously be sure to fulfil. We
nave therefore carefully estimated the
UNITS OF our capacity TO pay 1t is
obvious that settlement practically
impossible to fulfill or one which
| might cause disaster to the debtor is
not desirable for either of u.s.
The basic principle of the capacity
| to pay is admitted-I am sure-by the
pracucal mentality Of the American
people and is also accepted, as have
been given to understand, by the
American Government.
we recognize, / repeat our debt
toward the United States, but we ask
that due account be taken of the real
! conditions, economical and financial.
in which Italy finds itself"
Inc Italian obligation is approx.
mately S2.13S, 900 900, and the Italian
government desires that its payment
De spread over period of years. The
length of time to be allowed, there
Iofe, constitutes one OF the important
phases OF the question with which
this and future conferences has to
deal.
1t already was known that Italy
was pressing for a delay in the be-
ginning of actual remittances. Neither
the Treasury nor the embassy would
indicate, however, the duration OF the
| proposed moratorium. but it was said
In some quarters to be 10 years.
Conference Is Secret.
Secrecy is to surround all Of the
| conferences on the Italian debt The
Treasury and embassy already have
reached an agreement that comment
! shall be withheld by all of the par
! Elephants in the discussions. and such
| information as is given out will be in
a formal statement approved by both
| Mr.. Mellon and the ambassador as the
heads Of the two commissions.
The Italian delegation includes the
Ambassador and Signor AIberti,
| director of the Credito Italiano, one
of Italy's great banks; August Rosso.
counselor of the embassy, serving as
the delegations secretary, and Romolo
Angelone, the commercial attache,
who will be the interpreter.