Evening star., 1946-05-11
Byrnes Accepts
Red Reparations
Demand on Italy
Clashes With MoIotov
On Navy as Source of
100000 Charge
BY the Assoeioted Press

PARIS, May 11.-Secretary OF
State Byrnes today accepted the
Soviet Unions demand for $780,
100000 in reparations from Italy,
but added conditions which led
to a clash with Soviet Foreign
Minister Molotov.
This was reported by an American
source
Almost the entire two-hour infor-
NAL meeting of the four-power con-
ference was devoted to the repara-
tions issue as the Ministers continued
their review of disputed points in
italian peace treaty proposals in
efforts to narrow down the area of
disagreement.
Specifies Reparations Source.
Mr.. Byrnes, accepting the Russian
reparations demand, was reported
by the American source to have said
these must be obtained only from:
l. Italian assets abroad.
2. Excess industrial equipment in
former munitions factories.
3. Merchant shipping.
f. Naval vessels.
Mr.. Molotov promptly disputed the
last point. He said naval vessels
were legitimate booty of war and
should be apportioned among the
victorious powers as such, and not
as reparations.
Mr.. Byrnes retorted that booty
could be claimed only by those who
had captured it, and the Russians
had captured no Italian naval YES
sells.
The position of British Foreign
Secretary and French Foreign Min
lister Bidault could not be learned
Immediately.
A new informal session was sched-
uled for the afternoon, at which the
conference was to continue discus
sion of the question of Italy's pre-
war bi-lateral treaties. This discus
sion was begun just before the con-
ference broke up this morning.
Two Russian Concessions.
Two surprise Russian concessions
paved the way for possible break
in the week-long deadlock which
had brought the conference to the
brink of failure.
Mr.. Molotov agreed to withdraw
his opposition to:
/. A French proposal allowing
Italy to retain, as sole trustee under
the United Nations, her pre-Fascist
colonies.
2. An American proposal provid-
ing for the establishment of an in
ter-Allied commission to investigate
and prosecute war criminals within
Italy for certain limited time aft
er the signing of the Italian peace
treaty.
Both issues were held open for
additional discussion today.
French official quarters said they
were encouraged by last nights
meeting in which, they said. Mr.
Molotov took the initiative in an at
tempt to settle the long troublesome
issue OF Italy's African empire.
Byrnes Backs MoIotov Move,
Mr.. Byrnes seconded Mr.. Molotov's
motion on disposition of the Italian
colonies, with the proviso that Libya
and Eritrea be given their indepen-
dence after 10 years.
British sources said Mr.. Beyin
argued for the immediate indepen-
dence of Libya and Eritrea, and then
asked that Britain be given trustee
ship over Cyrenaica, former Italian
colony within Libya.
These sources said Mr.. Bevin cited
Brltaln'S wartime promise to
tribesmen of Cyrenaica that they
would never again be placed under
Italian rule, and that he told Mr.
Molotoy:
"Tobruk is to us what Stalingrad
is to the Russians"
Mr.. Molotov's concessions were
generally interpreted as tantamount
to withdrawal of Russian demands
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