750G.00/9–2254: Telegram

No. 283
The Acting Secretary of State to the Embassy in the United Kingdom 1
top secret
priority

1672. Limit distribution. For Thompson. FOA and Department authorize you (London’s 14542) use necessary part of uncommitted portion $20,000,000 previously authorized for assistance Italians to resolve cultural houses problem. Our hope that Italians will still be willing increase their contribution above the 150 to 200 million lire they now prepared make. In any event assume additional US assistance required from uncommitted portion no more than equivalent 350 million lire.

Foregoing decided on basis lack current availability sufficient counterpart Trieste, desire avoid leave such mechanical problems involving US after turnover and wish avoid further negotiating problem with Italians.

Use additional increment FOA funds precludes direct grant to Slovene organizations through AMG and Department considers it preferable contribution come directly from Italians so as obviate US involvement this and other transactions after US/UK withdrawal.

Re quarry and Gorizia frontier problems believe we must do all possible maintain your negotiations on basis broad understanding reached by Murphy in Belgrade. His reports indicate Yugoslavs do not intend insist on either though they may wish take up latter with Italians separate from general Trieste settlement. Importance we already attached to bringing about quick settlement now increased by prospect Italian Foreign Office budget debate about October 4, need anticipate October 8 anniversary and desirability [Page 558] from our viewpoint as well as Italians obtaining settlement by or during nine-power London meeting. Recommend you remind Italian and Yugoslav negotiators as necessary of broad agreements reached by Murphy whenever they insist on territorial points not specifically covered therein.

Smith
  1. Drafted by Freund and cleared with Thurston, Jones, FitzGerald (FOA), and Barbour. Repeated for information to Rome, Belgrade, Paris for Murphy, and USPolAd Trieste.
  2. Telegram 1454, Sept. 22, contained Thompson’s request for guidance on what commitments he could make to Italy regarding assistance on funds for the cultural houses. He asked specifically whether part of the 500 million lire could be used for this purpose and whether the United States could undertake to supply these funds directly to the Slovene organizations through the Allied Military Government if necessary. (750G.00/9–2254)