Office of the Historian

865.00/5–347: Telegram

The Secretary of State to the Embassy in Italy

top secret
us urgent
Washington, May 20, 1947—8 p.m.

726. For the Ambassador. Dept has considered Ital situation in light developments outlined Deptel 622 May 1 as well as info urtel 1031 May 3 and subsequent tels. It is evident any non-Communist govt formed following De Gasperi’s resignation must achieve early, visible improvement economic conditions and demonstrate Ital people it enjoys Western support if further progress Italy along democratic lines expected. Foregoing naturally applies also and in almost equal measure to any new govt in which Communist participation is reduced to minimum.

In anticipation of possible request from Itals as to what US support such govt might obtain, following proposals have been formulated and approved:

1)
General pledge US support for Italy, to be made upon formation new govt.1
2)
Consultations to be undertaken UK and French Govts to urge them lend support Ital Govt and take steps provide Ital people tangible evidence this support, including any possible treaty revision in Ital favor. One move would be immediate admission Italy to Tangier regime.2
3)
Contemplated Italo-US agreements, including commercial treaty, bi-lateral air agreement and trade agreement, to be negotiated soonest possible to derive full psychological value. US to urge Ital Govt take immediate effective steps improve economic conditions.
4)
Every available source economic assistance Italy to be utilized, including post-UNRRA relief.3 Congress to be urged pass promptly enabling legislation for return Ital assets in US, including seized [Page 910] ships;4 Eximbank to be urged expedite availability $100 million earmarked loan; War Dept to be asked expedite final settlement suspense accts.
5)
Surplus mil eqpt, recommended by SACMED for transfer to Ital armed forces, to be made available lowest possible cost.5
6)
Every opportunity to be taken advertise to Ital people US support Italy and US appreciation Ital progress.

Tarchiani told in genl terms of above measures when he called see me May 16, as well as our willingness explore possibility making available additional merchant ships for Italy. He was also informed we contemplate statement of US support for Italy at time treaty is ratified, in addition to friendly statements which I understand will be made in Senate during treaty debate.

In your discretion, you may use substance of foregoing in conversations with De Nicola, De Gasperi or others re formation and future course of new govt.

Marshall
  1. Issued to the press by the White House on June 14. For text, see Department of State Bulletin, June 22, 1947, p. 1214.↩

  2. The Ambassador in France, Caffery, reported in telegram 4171, September 25, from Paris, not printed: “Member of Italian Embassy told us this morning that he had learned from French of our initiative (and French concurrence) in renewed effort to obtain Italy’s readmission in international regime at Tangier now that peace treaty has been ratified.” (881.00/9–2547)

    The British Embassy’s note No. 553 of October 13, not printed, gave the Department official notice of Italy’s admission under article 11 (b) of the Anglo-French Agreement of August 31, 1945 (881.00/10–1347).

    ↩
  3. See telegram 1786, July 1, from Rome, p. 930.↩
  4. Regarding the “Memorandum of Understanding between the Government of the United States of America and the Government of Italy regarding settlement of certain wartime claims and related matters”, see editorial note, p. 956.↩
  5. See letter of July 21, by the Deputy Central Field Commissioner for Europe, p. 939.↩