865.24/10–845: Telegram
The Ambassador in Italy (Kirk) to the Secretary of State
[Received October 8—5:06 p.m.]
3006. Re my telegram 2810, September 21.9 Radio Bulletin No. 231 dated September 27 reports transfer of surplus property disposal functions from Army-Navy Liquidation Commission to Department. No official confirmation or instructions have been received in this connection.
[Page 1290]As Department and Treasury are aware the manner in which the questions of priorities and financing are handled will determine the possibility of an expeditious and effective disposal of surplus property. Embassy and Tasca consider the following general procedure as providing the most practical method of disposing of such property:
- (a)
- Army should complete inventory of supplies in Italy and determine such items as are to be retained to meet its requirements;
- (b)
- all property inventoried and available for disposal should be priced and transferred en bloc to Italian Government;
- (c)
- an agreement regarding payment for property so to be transferred should be negotiated immediately. This should take place prior to transfer of property to Italy and should provide for payment along the lines indicated by the initial payment of 15 billion [million] dollars payable in lira. For other suggestions in this connection see my telegram 2097, July 25.
The solution above can be accomplished quickly and effectively. It contains the advantage of eliminating time consuming question of priorities including the elimination of the highly unrealistic and awkward catalog system presently employed by Army Navy Liquidation Commission and the use of a bid and sale procedure to dispose of property the price of which had already been fixed in effect by the formula devised by the surplus property authorities in Washington (i.e., f.o.b. price pays 25% less depreciation).
Repeat to Treasury from Tasca, repeated to AmPolAd as 773.
- Not printed; it reported that the surplus property situation in Italy was becoming alarming (865.24/9–2145).↩