Evening star., 1925-11-12
Payments for First Five
Years to Be s5,OO0,OOO,
Increasing Gradually to
S7O,OOO,OOO Later On.
ENJOYS ACCEPT u. S.
OFFER UNCONDITIONALLY
Agreement Reached Today After
II Days of Negotiations-Pact
Most Lenient Yet Made by
America-Rumanian Obligation
to Be Taken Up Next.
By III. B. ROGERS.

The Italian debt to the United
States was funded today in an
agreement reached between the
American and Italian commissions
providing for an average payment
beginning at $5,000000 for FIVE years
and running up TO about S70,000000
year. an average of about $36000,-
600 annually.
The S5O00.00O for the first FIVE
years are to be applied to principal
with interest beginning al the sixth
year at onc-eighth OF per cent. The
average interest rate over the period
OF amortization is less than one-half
OF Per cent
The payments for the first 25
wears average about Sl7,G00000 an
nually.
The total value of the payments to
be made by Italy may be reckoned it
was explained. as the equivalent of a
debt Of $500 900. 900 with interest at 5
per cent. This is by far the greatest
concession ever granted by the Ameri-
can commission TO any of its debtors.
The total, il was understood, that
in the neighborhood of s. 800. .00O. 600.
Total. 81 SOC. 100000.
The total debt of Italy Is listed on
the Treasury books, with interest al
) per cent. as about S2,136 900 .O0o.
The principal, however, which con
sisted entirely of cash advances To
Italy, practically all Of which We're
made during the World War, amount
ed TO about 81 600 900 900
The Italians accepted without
reservations the American offer made
yesterday.
The Italians, however, it was
learned are accepting an offer that
they previously had contended would
be beyond their utmost capacity TO
pay. After the meeting today Il
was learned that there was some
timidity on their part as to wha,
kind of reception would be accord
ed the agreement in Rome.
Security Clause Denied.
On the other hand, it was learned.
the American offer which was ac
cepted was only extended to the
italians Yesterday after a long de-
bate. and for the most part the
American commission was split with
a vote of 5-3 in favor of signing the
opposing members conceded to make
the offer unanimous. In fact, all the
offers presented by the American
commission and all action taken by
it TO date was said to have been
unanimous.
There is no security clause written
into the agreement, it was said on
the best authority although the Ital-
ianS We're exceedingly anxious to have
some kind of a security clause written
into it.
The American commission. it was
understood, took the position that if
at any time Italy failed to meet the
terms there would necessarily have
to be a reconsideration.
Shortly after II o'clock Secretary
Winston of the American Debt Com
mission emerged from a joint meet
ing of the entire American and Italian
debt commissions at the Treasury and
made the brief announcement that a
settlement had been reached.
The announcement came after a
morning of activity on the part of
both the American and Italian com
missions and after a subcommittee of
the Americans had called on President
Coolidge at the White House.
The American commission convened
al 10 o'clock at the Treasury and,
after a short session, Secretary of the
Treasury Mellon, Secretary of Com
merce Hoover, Senator Smoot and
Continued on Page ., Column A.