Italy and Hungary. But the problem of reparations is not only Franco-German, it is also Hungarian, Bulgarian and Austrian.
It is useful to define the stage which has been reached with regard to these ex-enemy countries. The total of the Hungarian reparations, which is fixed by the Treaty of Trianon, has not yet been determined by the Reparations Commission, and Hungary up to to-day has only furnished limited supplies in kind. The Hungarian Government, alleging the disturbed economic and financial conditions of the country caused by the serious depression of the krone, has recently put forward the necessity to contract a foreign loan, which, if it is to succeed, should be guaranteed by the custom duties, by the tobacco monopoly, and, if needs be, by other resources. Hence arises the necessity for such resources to be freed for an adequate period from the claims of reparations. A Memorandum precisely to this effect has been recently presented by the Hungarian Minister in Paris to the Reparations Commission.
The Italian Government, having examined the question from a technical point of view, has deemed it indispensable to concede to Hungary the temporary relinquishment of certain resources, so that she may proceed to her own economic restoration by means of loans to be contracted abroad. Italy has, therefore, shown herself favourable to the above Hungarian request, with the addition of certain conditions necessary to guarantee her own rights, on which point she is in agreement with the British Government.
Agreement with Bulgaria for Payment. With reference to Bulgarian reparations, Italy, Great Britain and France came to an agreement on 21st March with the Bulgarian Government to facilitate the payment of her debt of 2250 million gold francs fixed by the Treaty of Neuilly, by dividing it in two parts; one of 550 millions to be paid by instalments beginning in October of this year, and the other 1700 millions not to be claimed before thirty years.
Bulgaria has pledged herself by this agreement to reserve for the regulation of her debt the revenues of her customs and has already passed a law to this effect. The agreement has also been approved by the Reparations Commission, with the reservation of our rights for the reimbursement of the expenses of the army of occupation. In fact, negotiations are proceeding with the Bulgarian Government for the regulation of this credit, which enjoys the privilege of priority over other reparations.
Our Government, animated by favourable dispositions as regards all that concerns the settlement of obligations arising from the war, has had no difficulty in accepting such an agreement.
The Loan to Austria. Fulfilling the pledge taken by its predecessors in the Protocol of Geneva of 4th October 1922, the Italian Government has co-operated with the Governments which are signatories of the Protocol, in order that the loan in favour of Austria should have a large and ready success. For this purpose the Government has consented to postpone for twenty years, which is the duration of the War Loan, her credits against Austria for the recovery of damages and for bonds of food supply, has given her own guarantee for twenty-five per cent. of a maximum loan of 585 million gold kronen, and has authorised Italian banks to contribute directly to the loan up to the maximum of 200 million lire, including the sixty-eight which Italy had previously lent to Austria, and which, by the terms of the Protocol of Geneva, should have been repaid in cash.
Putting off for a further period the exaction of Austrian reparation, and giving a guarantee and a direct and substantial contribution to the loan in favour of Austria, the Italian Government has wished to offer her co-operation towards the political independence and territorial integrity of the Austrian Republic to which the Protocol of Geneva refers, and to which the United States of America also wish to contribute, confidently subscribing for the first time to a European loan.
Relations between Italy and Yugoslavia. Italy’s political line of conduct towards the States of the Little Entente and in general towards the States recently created is substantially inspired by the necessity of exacting the respect and the scrupulous fulfilment of the treaties, because, given the present contingencies, only such a policy can produce quick and pleasing results with regard to an economic settlement of the Danubian States which would contribute to the larger one of Central Europe. On several occasions the friendly and moderate policy of Italy has followed such a course with satisfactory results.
With reference to such a policy the relations between Italy and Yugoslavia have a special importance. The clear attitude taken by the Government with regard to Yugoslavia by proceeding to the definite enforcement of the Treaty of Rapallo has strengthened our legal position, and we are able to rest any further development of our policy on a solid basis. The enforcement of the Agreements of Santa Margherita, which has been necessarily laborious owing to the large extent of the field covered, can be said, however, to proceed on the whole satisfactorily. In spite of the initial difficulties encountered in any exceptional régime, the economic system of the so-called “special zone of Zara” is already in force for the evacuation of the remaining Dalmatian territories, and the various organisations for the regulation of all the intricate questions arising out of the Agreements have been constituted.