PAYING WAR DEBTS.

Hawera Star, Volume XLV, 14 November 1925, Page 7

PAYING WAR DEBTS.

ITALY’S OBLIGATIONS. AGREEMENT WITH U.S.A. BY CABLE—PRESS ASSOCIATION—COPYRIGHT. WASHINGTON, Nov. 12. The Treasury Department announces that an agreement has been reached on the Italian war debt. The announcement said the amount to be refunded as at June 15, 1925, is the original indebtedness of 1,648,000,000 dollars, plus accrued interest to date as in other recent settlements. The Italian Government agrees to the repayment of this amount, namely, 2,042,000,000 dollars, upon proportionately the same schedule of annual instalments as in the agreement with Great Britain, except that during the first five years payments are 5,000,000 dollars annually, after which the interest is fixed at one-eighth per cent for 10 years, with increases during successive 10-year periods to one-quarter, one-half, and three-quarters of one per cent, and one per cent, and in the last seven years at two per cent. Under this arrangement the total annual payments will begin at 5,000,000 dollars and reach 8,000,000 dollars m the last year for the original debt. The United States will Teceive during the period of the agreement a total of 2,407,000,000 dollars. The basis of the settlement has been the of principal and full payment of interest in accordance with the capacity of Italy to pay. A commission has made the most exhaustive examination into Italy’s fiscal an economic situation. Italy is poor in natural resources and the visible balance of trade is Food to support her rapidly increasing population, coal, oil, iron and copper have to he imported. Her future depends on the development of her industry and the labour of her people. It is felt that the settlement lays as heavy a burden upon the Italian people _as the United States is justified is imposing, and represents Italy’s capacity to pay. A final agreement is being drafted, and should he signed on Saturday.