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Ostentation is out. Sensibility is in.

That`s the word from Milan, where the Italian houses premiered their fall ready-to-wear collections last week, kicking off a string of international shows that takes the world of fashion to Paris, London and New York before it`s all over.

Designed under the shadow of war, Milan`s version of Fall Fashion 1991 is more soothing than shocking. In formal shows and in showrooms, designers introduced clothes with the familiar Italian panache, but with a firm sense of practicality and wearability. Even hemlines showed signs of coming down, although they`re still above-the-knee and sometimes way-above-the-knee, but lower than just-below-the-crotch.

Here`s a roundup of some of the more important collections:

Armani

Giorgio Armani sustained his claim to being the strongest force in Italian fashion with suits that had long, sleek jackets requiring no fancy decoration to make their mark. Skirts a trifle longer than the jackets alternated with dresses and shorts. But it didn`t matter, because you could hardly tell the difference. Everything was reasonably short.

The jackets had shaped shoulders to enable them to fall in a fluid line and were worn with shirts or straight, not floppy, overblouses. Sometimes a V- neck sweater was pulled over the shirt, or a handkerchief tucked loosely in a breast pocket. Stockings were sheer and light, shoes had moderate heels and earrings were small and round. Nothing interfered with the well-bred look. An occasional pink, mauve or red tweed suit varied the parade of Armani neutrals. For evening the designer translated his superb suit looks into dressy fashions. Red or purple plaid suits gleaming with festive gold threads are a sensible way of dressing up.

Even more sparkly jackets and matching vests accompanied black pants. Rather wide ties, worn unfastened and covering each bosom, accompanied some jackets, which the models removed at the end. The effect was decent, but startling. And, of course, in real life it isn`t necessary to take off the coat.

Versace

Versace and Armani represent the opposite sides of the fashion spirit here in Milan. The Versace show was a theatrical event, artfully paced. Known for his flashy colors and complex prints, Gianni Versace opened with black dresses and crisply flaring paper-doll shapes. But his models hardly looked like little girls. Though their crinkled, unruly hair floated past their shoulder blades, their over-the-knee shiny boots and bared necklines gave them a dangerously sexy air.

Later came stinging chartreuse and acid yellow colors along with stretch jumpsuits in curving wrought-iron prints. And for evening, the skating-skirt shapes were shown with incredibly ornate jeweled bodices in patterns that mixed dancing girls, religious motifs, classic columns and musical notes. The boots developed jeweled cuffs. Long black dresses plunged to the waist or were cut away to show jeweled bras. The clothes were far from subtle, but they certainly were effective.

Fendi

Fendi handled the problem of showing furs, his specialty, with some discretion in these days of animal rights. Pointillist and abstract patterns, patchwork effects and lots of reversible coats made it difficult to tell where fur left off and fabric began, or whether it was fur at all. Many furs were shown with denim pants slashed down the outside. Many coats were decorated with fringe or braid.

Karl Lagerfeld, the designer of both the clothes and the furs, denied he was reviving the hippie era. His inspiration, he said, was the ”high bohemian” of Eleanora Duse.

He was especially enthusiastic about his knitted styles, including overblouses and tights, made of chenille and rayon yarn. They were as soft as cashmere and provided an informal foundation for luxury furs, like golden sable.

Ferre

Gianfranco Ferre opened his collection with the kind of slick sophisticated clothes, full of flash and dash, that made him famous. Narrow trousers, ascot blouses and tunic-length coats and jackets were dazzling in black with red accents or all white.

But then he began embellishing his styles with yards of feathers, stiffly lacquered pleated ruffles and elaborate masks for some mythical ball. The move from reality to fantasy was unsettling. But Ferre`s mastery of luxury separates is unsurpassed.

Krizia

The collection that came closest to expressing the spirit of Italian fashion was Mariuccia Mandelli`s clothes for Krizia. She had high moments for both day and evening. Shorts were prominent in both categories. They looked comfortable in tweed with long cable knit sweaters and pert in black velvet with white silk shirts.

For wit, sweaters were emblazoned with cartoons inspired by Dick Tracy.

For a fresh slant on sexy dressing, necklines were carved low in asymmetric curves echoed by the short curved hemlines. Rhinestone belts, buttons and pins provided the glitz. Colored stones in abstract patterns decorated evening clothes.

Consistency was not a strong factor in the showings here, but Mandelli got her act together better than most.

Genny

The Genny collection represents mainstream Italian fashion. The fall styles, what retailers call ”money in the bank,” were brimming with clothes that ”walk out of the store.” In other words, retailers expect to have no trouble selling them.

They are styles for women who are satisfied with the current state of fashion. That means skinny short skirts, snugly fitted jackets and bold brash colors.

Everything is shown with black opaque tights and high-heel shoes, which even when they are laced up the front would never be mistaken for a nanny`s oxfords.

A shift made of alternating squares of jet and silver beads reflects the current obsession with 1960s Op Art. So do the steaming orange, hot-pink and acid-yellow psychedelic colors. Short plaid coats and jackets worn over silk shirts in the same plaid combine several of these stinging shades.

No one at this house worries about toning down the colors or lengthening the skirts, which are as short as ever.

At Genny, short evening clothes are never unassuming. A highlight:

Billowing satin skirts in day-glo colors, which are the simplest of Genny`s evening wear. They are worn over black, scoop-neck, long-sleeve tops and tights.

Byblos

For years, Keith Varty and Alan Cleaver seemed to have a hammerlock hold on young designs here in Milan with their Byblos collection. Now look what`s happened: Their clients are growing up.

The designers now show neat gray wool suits with jackets flaring over pleated skirts for women of any age to wear to work. And they made a serious attempt at making longer skirts acceptable. Their calf-length styles are pleated front and back but have smooth sides. They are in sharp shades like purple, orange and hot pink and, mirabile dictu, they don`t look dowdy. The black leather jackets worn with them help.

The designers keep the franchise young, however, with lots of black shorts under swingy black wool coats or velvet shorts under down coats with jewels marking the tufts. Long argyle sweaters worn as dresses and jumpsuits look snappy. Despite the maturity of some of the designs, the collection is lively and springy.

Moschino

Franco Moschino`s clothes include plastic pistols, jeweled holsters and a knitted shirt that bears the question, ”Ready To Where?” Yet he calls it

”the most boring collection of the Moschino age.”

Despite his protests, visitors found a lot to smile about: a poncho printed with the peace symbol intertwined with hearts, a blouse decorated with an olive branch and a dove, a nude sketched on a black shirt.

About the gun. It`s a symbol of peace, not war, the designer said. Like the circus clown`s gun that shoots flowers, it is aimed at a daisy, he added. Biagiotti

Laura Biagiotti, known for her cashmeres, opened her show with a Highland fling.

Her first models appeared with plaid shawls tossed over one shoulder, dark jackets and pleated skirts or pants. The outfits cheerfully recalled the days when velveteen and plaid were as much a part of fall dressing as navy blue suits symbolized spring.

Other upbeat clothes were the coats and dresses divided into bands of glowing colors, princess dresses in gray flannel or in panels of different sized black and white checks, and long, full taffeta skirts with cashmere twin sets. The familiar styles were as comfortable as a security blanket.

Missoni

Knitted coats, usually reversible, were the high spot of the Missoni collection by Ottavio and Rosita Missoni, who are known for their knitwear. The coats had the muted look of heathery tweeds or were pieced and quilted as intricately as mosaics. They topped pleated skirts and overblouses in patterns that used such typical Missoni motifs as circles, zigzags and broken stripes. Dresses were important throughout but especially for evenings, as they flickered with metallic yarns and tiny mirrors. Some of the knits looked like gold mesh, with cable effects giving the surface a three-dimensional look.

Hems usually stopped a few inches above the knee, but some swingy metallic tent dresses grazed the knees. They looked elegant and comfortable. Narrow stovepipe pants with matching overblouses and cardigans were an alternative to dresses.

There was no attempt to keep colors quiet. Turquoise, orange, green and purple figured prominently.

Dolce & Gabbana

Too much sobriety can be numbing, and Domenico Dolce and Stefano Gabbana made sure this didn`t happen. The principals in Dolce & Gabbana turned fashion inside out.

They gave corsets, panty girdles, and bras new meaning as outerwear. These were paved in rhinestones and big multicolored stones or were made of fabric that looked like Jackson Pollock, one of the best-known artists of the abstract expressionist movement, had dribbled paint on them.

The corsets were decorated with skating skirts made of black fox tails or layers of chiffon. They were sheltered by ostrich boas or fake leopard capes and for the new propriety were worn over black tights and had turtleneck tops. Bracelets of colored stones climbed up the arms.

Where do you wear these things? Late-night clubs or swimming pools, of course. Are these clothes for liberated women or for sex objects? Topic for a seminar. Either way, the show provided a break in a serious season.

Ferragamo

While many of the collections shown in Milan expressed a sense of moderation, Ferragamo`s clothes are getting swingier. Consider the miniskirt made of patent leather and suede triangles pieced together, along with matching coats, jackets and shorts. Or the sheer, short trench coats belted over jeweled dresses. Dazzlers all.

It is basically a miniskirt and shorts collection, with a few knitted cashmere jumpsuits thrown in. There are some nicely flaring jackets over short pleated skirts, but even these represent a change from the classic leather and tweed clothes for which the house is known.

Valentino

Mario Valentino died early this year but his wife, Bianca, daughter Fortuna and sons Enzo and Gianni have brought his craftsmanship in leather to awesome heights.

They have stitched surfaces of smooth leather coats with subtle designs that suggest embroidery. They have made pleated skirts that look supple and graceful. Decorative inlays in two colors are reminiscent of fine furniture. And tiers of matching silk fringe make dresses and coats really swing.

Everything is bathed in luscious colors, from caramel in leather coats to purple and red in suede dresses.

Shapes are simple, skirts are short and the result is youthful luxury.

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