The Washington times., 1925-05-27
HOPE: IS SEEN IN
ITALIAN DEBT
PARLEY !
Government Officials Hope for
Results from MeIIon.s
Talk to Ambassador
By H. K. REYNOLDS

A slight rift in the. foreign debt
clouds was seen today in the open
ing of a series of conversations
here between the Italian ambassa-
dor and Secretary of the Treasury
Mellon on the funding of Italy's
$2,000,000,00O debt to the United
States. As Italy was looked upon
by the Government as one of the
nations which probably would
mark time until France made a
concrete debt-paying proposal, the
visit of Baron G. de Martino to
the Treasury Department was
hailed with considerable satisfac-
tion in Administration circles.
Discussion is General.
The ambassador made no definite
move, however, toward the initia-
ton of debt-funding negotiations,
limiting his conversation with the
chairman of the American DEBT
Commission to a discussion of the
foreign debt act, under which the
commission is operating, and the
economic problems confronting the
Italian government in connection
with the settlement of inter-allied
debts.
From Secretary Mellon he obtain,
ed assurances of the desire of Prssi-
dent Coolidge and his Cabinet to
deal fairly with all the European
debtors, but was told that the Gov
ernment was determined to push to
a conclusion the present drive sor
the collection Of all outstanding war
debts.
A report on the attitude of the
United States has been cabled 10
expected that he will now let the
matter rest pending instructions
from his government.
Rome Knows Policy.
The Mellon .Martino conference
was not the first that has taken
place between the United States
and Italy on the debt problem, ais
the American ambassador in Rome
took the matter up with Italian Of
ficials at the same time other gov
ernments were advised Of the 7e-
sire of the United States to fund
the foreign debt without undue
delay.
The conversations which took
place subsequently in Rome were
directed by the State Department,
however, while the Mellon MartinO
conference here has resulted in the
establishment OF a definite cOntacr
between the Italian government and
the American Debt Commission.
Further assurance that the coun-
try as a whole is fully in sympathy
with the Coolidge debt campaign
was brought to Washington today
by Congressman William r.. Wood,
CT Indiana, chairman OF the Repub.
lican National Congressional Com
nittee.
Approved in West.
Returning from tour of the
Middle West. Wood said:
The Administra tion's policy of
insisting that the European debtor
nations enter into funding arrange
ments for the settlement of their
81 900, 100000 war debt to the Unit
ed States ig everywhere approved.
The people understand that the
payment Of these debts would re-
suit naturally in reduction Of Fed.
eraI taxes"
The same opinion is held by Sena.
tor Borah, chairman Of the Senate
Foreign Relations Committee. who
has become virtually an "unofficiaI'
member Of the American Debt Com
mission. Both the President and
Secretary of State Kellogg are keep
ing in close touch with Borah. and
he is being advised of all develop
ments in the debt situation. thus
preparing the way for congressional
approval of funding agreements
concluded by the Government.
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