Show ITALIANS R REACH ACH DEBT AGREEMENT ENT DOTH COMMISSIONS SIGN FINAL AGREEMENT FOR LARGE WAR DEBT FUNDING Charge And Annual Pay Payments ments ment Will Bo Bit Operated On Upward Up Up- ward Scale Both Side Are Satisfied ed Washington The The American and Italian debt commissions have signed an agreement for the funding of Italy's war debt to the United States calculated for forthe the settlements at 2 Terms of the funding arrangement agreed upon after ten of days negotiation negotiation and accepted by the Italian commission as a very generous treatment of the In r the usua usual year two amortization period In tn tho formal announcement of the terms the American commission commis sion slon said it feels they lay as heavy a burden on the Italian people as we weare ore are justified In Imposing and represents Italy's capacity to pay Doth the interest charges which do not begin until the sixth year and the annual payments payment a on principal are fixed on a 11 gradually Increasing scale to meet the debtor nations nation's capa capacity to pay Beginning at one eighth of 1 percent per percent cent for the tho first ten years of the Interest t period the Interest rate Increases In creases creasea during successive year ten periods to a maximum of 2 per cent during the last seven years With the settlement If approved by congress the Italian government to date from June 15 last for the first five years ears the annual payment would be approximately scaling from to during the sixth to the fifteenth years Inclusive o and nd thence Increasing to a of to last seven years Besides a II reduction of back InterI Interest Interest Inter Inter- I est charge In fixing the amount to tobe tobe be paid off the American commission feels th that t it has made even greater concessions in the future Interest charges and the division of ann annual al amortization payments In addition It not only agreed to allow a delay of two years In making a I payment whenever Italy's financial condition warranted but rave gave permission sion sian to pay off the postponed annuities annul ties in the third and fourth years after af ter due with an Interest rate of 4 1 4 1 per cent applying on delayed pay pay ments menta In the tho British and other settlements settlements set set- except the Belgian postponed postponed post post- payments must be liquidated In Inthe Inthe the third year This concession to Italy was made when Its delegates withdrew their demand for tor a safeguard safeguard safe safe- guard clause against unexpected exchange ex change hange fluctuations The Tho American commissions commission's announcement an of the settlement pointed to Italy's relative poverty in natural al re resources and indicated the co con consideration it had given that nations nation's future in the observation n that this depends upon the development of her Industry and the labor of her people eople |