FOREIGN MINISTERS UNABLE TO AGREE

Chronicle (Levin), 20 June 1946, Page 5

FOREIGN MINISTERS UNABLE TO AGREE

Received Wednesday, 7 p.m. LONDON, June 18. The Foreign Ministers, at'ter two and a half hours' discussion, failed to agree on the critical question of Italian reparations, but more flexiliility ivas evident on respeetive viewpoints than previously, says Reuter's Paris correspondent. The crucial disagreement' continues to be the problem of what Italian eeonomic sourees are suitable as tho basis Qf payment of the £25,000,000 demanded by Russia and the £50,000,000 sought by Russia for Greece and Yugoslavia. Mr. Molotov eventually agreed to submit the Greek and Yugoslav claims to the 21-Nation Peace Conferenee, but insisted that Russia 's own elaim he sc-ltled duri:ig the present eonference. klessrs Bvrnes and Bevin maintained that Russia 's elaim could be made up from Italian assets in .former enemy satellite nations in the Balkans plus Italian naval and marchant shipping. Mr. Molotov insisted that the Italian Balkan assets, plus two 2o,000-ton Italian liners, the Saturnis and the Yulcania, which America offered Russia, were insutticient to meet. Russia 's claims. He advocated making up the deficit from current Italian production spread over a period of six years. Al. Bidault said that Italy could pay reparations from production providod the six year period was delayed two vears. Mr. Molotov said that the French and Russian views were s-o closelv akin that he was convinced that they were «reconcilablp. Mr. Bevin proposed that all the. major Powers ahandon requests for reparations from Italy todiolp Italy 's deinocratic Government. Mr. Molotov refused to agree. Mr. Bvrnes* then proposed that the vhole problem be referred to the 21-Nation Gonf'erenee, but Mr. Alolotov again dissented. Mr. Bevin objected strongly to both the French and Russian proposals. He said that giving any one nation a sharc of Ttaly's production would he giving that nation prefereTiti.nl treatment and would constitute a uullification of the. most. favoured nation clause wliieh the Ministers yesterdav agreed shouhl apply to United Nations. The Foreign Ministers deputie.s this morning added six«new* eeonomic elauses to the Ministers' agenda for discussion, followina* the disposa.l of Russia's reparations elaim. .• - •. (1) Coihpensafion for personal injuries suffe.red by Allied nationals' at the hands of Italy. (2) Claims arising from Italy and other former enemv satellites. (3) The status of Italian debts. (4) Italian owned cables. (5) The status of Italian. transport and shipping. ((i) Conditions of ownership and operation hy Unitqd Nations of industrial property in Italy.