The Waterbury Democrat., 1946-05-03

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Continued from Page i) ing yesterday, the deadlock held on the Italian peace treaty issues. The only apparent difference was plain CT speaking.
 The ministers continued today their search for an agreement on Trieste and the 1tallan-YugOslav frontier. Delegations from both countries were on hand to state their cases.
 The ministers deputies met at il 9. m. G a. m. E.D.T.) to prepare the procedure for an afternoon session of the ministers. Byrnes spent the morning at the Hotel Meurice, headquarters of the Amer ican delegation. He saw no visitors.
 There was a determination among the western powers, particularly the American. delegation, not to yield an inch to the Russians, even if it means the breakdown of the confer ence.
 The four ministers scheduled plenary session at P. M. (11 A. M., EDT.) at which Premier Alcide de Gasperi of Italy and Vice-premier Edward KardeIje of YugOsIayia were to speak.
 Feeling among the delegations was increased by the first small informal session late yesterday in Secretary of State James F. Byrnes' private office. The bluntest speaking thus far was heard there as Byrnes openly challenged the Russians on separations, economic stripping of defeated countries and armistice terms with the Balkan Axis satel- lites.
 Only few days ago the Amer ican delegation spokesman belit- tied the idea of lewiston in the Italian armistice as unnecessary if the ministers agreed to peace treaty draft. yrneS' action yes- terday was regarded by some dip- lOmats here as the opening wedge toward later signature by the United States and Britain of sep- arate treaties with Italy if the Council fails to reach agreement.
 Agreement has been reached on only two minor questions, although the conference is eight days old.
 The hearing granted to Italy and YugoSlavia was another step in hunting a solution to the boundary dispute between those two countries. Both delegations invited to express views on a report submitted by the four power boundary commission.
 An American member of the boundary commission said the Rus sians favored boundary that would include in Yugoslavia "every single person who speaks Slovene or Croat, although 1t would leave 550,- GOO to 100000 Italians under Yugo- slav rule"
 He said the American-sponsored line would include an even larger of Yugoslavs under Italian rule because of the inordinately large Yugoslav minorities in the larger cities, which are neverthe- less overwhelmingly Italian.
 ByrneS told Foreign Minister V. M. MOlotOv rather sharply yester- day that the United States has no intention of passing out Amer ican dollars to defeated countries like Italy to be used by them for paying reparatiOns to Russia. MOlOtOv reiterated Russian de- nnands for $3OO, 900 900 repara- tions from Italy. Byrnes suggested that MOlotOv submit a plan by which Italy could pay without be- ing deprived of her economic means of existence.
 The ministers reached agreement on a minor issue earlier by deciding to hand the Adriatic Island of Pela- goSa to YugoSlavia while guaran- teeing Italian fishing rights, and allowing Italy to retain the denili- tarized island of UianoSa.
 Premier Olafur Thors of Iceland arrived in Paris yesterday on what he called social trip. He refused to see reporters and sent out word bhat he would not make political contacts during his stay of four or i've days. Russia recently has been American requests for Iceland to grant postwar bases to the United States.