740.00119 EW/7–2646

The Italian Ambassador (Tarchiani) to the Secretary of State

My Dear Mr. Secretary, I take the liberty of addressing to you this letter bearing in mind the concern you expressed to me in our last talk about the reparations claims which Greece will advance against my Country in the forthcoming General Conference of Peace.

The Italian Government has deeply appreciated the strong effort made by you and by the American Government since Potsdam in order to affirm the principle that Italy owes no reparation whatever to any nation; such an American stand is fully valued by Italy.

Unfortunately, the unshakable Russian stand and demand for reparations and the acquiescence she finally won, justifies the fear that also Yugoslavia and Greece, in spite of the territorial gains deriving to them from the war, might have a stronger case at the next Conference.

You frankly told me that while resolved to insist at Paris on the old American stand you were particularly preoccupied by the Greek demands, owing to the smaller entity—as compared with Yugoslavia—of her territorial acquisitions.

In this regard, I wish to list here below a few facts and considerations which may be of help to the American Delegation in their endeavor to avert the Greek reparation claims against Italy.

1)
The Dodecanese Islands, notwithstanding their little geographic extent, are very densely populated and constitute for Greece a considerable gain, both ethnically and economically. It must be kept in mind that those islands never belonged to Greece and that following to the war of 1911–12, they were taken over by Italy from Turkey who held them in her possession for centuries.
2)
During the three decades of Italian administration, their population had a huge increase; the value of public and private wealth has enormously augmented, due to the vast expenditures made by Italy for the benefit and development of the islands and islanders.
In evaluating the economic contribution deriving to Greece from the acquisition of these islands, one must keep into due account the whole increase of wealth both in public and private hands.
3)
The Dodecanese Islands constitute a notable source of foreign exchange income, as they were transformed into an important touristic center, attracting about 60.000 tourists yearly.
4)
Regardless of what is stated above, the amount of property pertaining to the Italian Government is very large. As shown by detailed memoranda handed to the Four Ministers Conference at Paris, it amounts to about 176.060.122 dollars.
As concerns the heavy responsibilities deriving to Italy following to the treacherous surprise attack perpetrated by Mussolini and Mussolini alone, against the will and even the cognizance of the Italian people, be it far from me to underrate them. However, I wish to submit to you a few remarks which may help to a fairer appreciation of the whole situation:
a)
Actual fighting between the two countries took place almost exclusively on Albanian soil. Consequently, hardly any damage was caused to Greece by Italian military action, except what resulted from sporadic bombings of the rear lines and equipment. No Greek cities were bombed by the aviation. The Italian troops entered Greek territory only as occupation troops, after the entire country had been occupied by the Germans. Italy did not participate in the bloody attack against Crete.
b)
During the period of the joint Italo-German occupation of Greece the behaviour of the Italian troops and occupation authorities toward the Greek people was absolutely correct. Italy did her best to alleviate the occupation costs weighing upon the Greek people and to oppose the merciless German oppression of Greece. Both these points have been acknowledged to us.

Moreover, Italy, in spite of her very precarious food situation, has done what was in her power to meet the alimentary needs of the Greek population. An honest study of the behaviour of the occupation troops will show beyond any doubt that the responsibilities and the costs of the Italian occupation have been infinitely less heavy than those of the German occupation, though the latter was carried out with fewer armed forces.

It must be added that it was due to a large extent to the intervention of the Italian Authorities if the requisitions by the Germans were not as drastic as originally planned, while the Italian requisitions were kept down to a minimum; it was again due to Italy if in March 1942—following negotiations started by Germany in November 1941—the Nazis receded from the purpose of having all Greek food exported to Germany; moreover, it was the Italian Authorities who favored and aided the re-establishment of barter agreements with countries bordering Greece in order to improve the food situation of that country; also, it was due to them if steps were taken in order to resume, in a spirit of collaboration with the Greek authorities, a mutual control of food items which finally became a weapon in the hands both of the Italian and the Greek Authorities to check the German requisitions.

I apologize, dear Mr. Secretary of State, for having dwelt rather at length on the above remarks, but I believe that a careful examination of these facts and considerations, and, at the same time, of the very grave Italian economic situation, might induce the Paris Conference to recognize that Italy ought not to pay reparations to the Greek people.

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And permit me to close recalling that the new democratic Italy pursues with sincerity the aim of a full reconciliation and close friendship with Greece. Such a close cooperation seems essential to the welfare of both countries as well as to the peace and tranquillity of that important sector of the Mediterranean. May no sequel of economic issues or reparation burdens stand in the way of this auspicated reconciliation.

I avail myself [etc.]

Tarchiani