REPARATIONS BY ITALY

Press, Volume LXXXII, Issue 24906, 20 June 1946, Page 5

REPARATIONS BY ITALY

FOREIGN MINISTERS FAIL TO AGREE DIFFERENCE ON SOVIET CLAIMS LONDON, June 18. “The Foreign Ministers, after two »nd a half hours’ discussion, failed to on the critical question of Italian reparations but more flexibility is evident in the respective points of view than previously,” says Reuter’s correspondent in Paris “The crucial disagreement continues to be about what Italian economic sources are suitable for the payment of the £25.000,000 demanded by Russia and the £50,000,000 sought by Russia for Greece and Jugoslavia. Mr Molotov eventually agreed to rubmit the Greek and Jugoslav claims to a 21-nation Peace Conference, but he insisted that Russia’s own claim should be settled during the present conference. Mr Byrnes and Mr Bevin maintained that Russia’s claims could be made up from Italian assets in former ®emy satellite nations in the Balkans, plus Italian navy and merchant shipping- , .. Mr Molotov insisted that Italian Balkan assets, plus the two 25,000-ton Italian liners, Saturnia and Vulcgnia, which America offered Russia, were insufficient to meet Russia’s claims. He advocated making up the deficit from current Italian production spread over a period of six years. M. Bidault (France) said that Italy i «-Uld pay reparations from production provided the start of the six-year ’ period was delayed for two years. Mr Molotov said that the French fi nd Russian views were so closely that he was convinced they were leeoneilable. Mr Bevin proposed that all the major Powers should abandon their requests for reparations from Italy to neip Italy’s democratic Government, Mr Molotov refused to agree, and Mr Byrnes then proposed that the whole problem should be referred to the 21nation conference, but Mr Molotov again dissented. Mr Bevin objected strongly to both tne French and Russian proposals. He 8 3id that giving any one nation a share in Italy’s production would be giving that nation preferential treatment and it would constitute nullification of the most-favoured-nation Clause, which the Ministers yesterday agreed should apply to the United The Foreign Ministers’ deputies pave added six new economic clauses to the Ministers’ agenda for discussion after the disposal of Russia’s repara* Ws claim. These are:— (1) Compensation for personal inJuries suffered by Allied nationals at tot hands of Italy; . £2) Claims arising in Italy and other enemy satellites; ’3) The status of Italian debts; (*) Italian-owned cables; (5) The status of Italian transport sharing: (o’ The conditions of ownership fpC operation by members of the k n |ted Nations of industrial property toftaly. vJr e ome radio says that th? Jtolian Government has drawn up a ‘«®tnorandum for the Foreign Minis’ll declaring that Italy could not to handing over Trieste but is ' PJpared to discuss the international‘totion of the port, ; League Team’s Win.—The £9£J’sh Rugby League team beat New South Wales by 61 Wints to s.—Sydney, June 19.