Foreign Relations of the United States, 1947, The British Commonwealth; Europe, Volume III

865.20/5–247: Telegram

The Secretary of State to the Embassy in Italy

top secret
us urgent

Washington, May 15, 1947—4 p.m.

695. Reurtel 1021 May 2¹ you shd see WAR 97658 of May 6.² Dept has concurred in reference JCS paper and final approval JCS and CCS under urgent consideration.

For your guidance re this transfer and air force equipment (Deptel 619 May 1, Fan 749 Apr 29 and WARX 97755 May 8³) difficult financial position Ital Govt fully appreciated. In view overriding importance prompt equipment Ital armed forces Dept considers “scrap price” or “nominal cost” shd insofar as possible be set to conform Ital financial and budgetary limitations, since regulations prohibit transfer without some payment. You shd follow negotiations US mil and FLC with Ital Govt and report any serious difficulties which might block or delay implementation programs.

Marshall

1. In this telegram, not printed, Dunn reported having learned that on withdrawal from Italy the Allies would have made inadequate provision for equipping the Italian army; that it now appeared that the British could not take on such a commitment; and he urged that tanks, U.S. artillery and ammunition now in Italy be made available to the Italian forces (865.20/5–247).
2. Not printed.
3. Not printed, but see footnote 2, p. 902.