763.72/1391

The Ambassador in Italy ( Page ) to the Secretary of State

My Dear Mr. Secretary: As you will have seen by my telegrams, I have for some time past been closely occupied in endeavouring to relieve the situation here touching the interference with our commerce with Italy, Switzerland and, to some extent, with other countries to the eastward, also. The situation of our commercial relations can be said to be almost deplorable. As my telegrams have shown, the Embassy is in receipt continually of complaints from American representatives in Italy and from Italian business houses as well, of the frustration of their efforts to carry through deals of great importance and value, and in these complaints unite persons who assure me, and I believe truly, that they are endeavoring to secure orders for the Italian Government and in some cases actually as their representative. This obstruction takes the form of interference with telegrams and of other means of impeding trade, and I confess that my efforts to get the matter solved does not meet with the success which I could wish. The Royal Decree promulgated in Italy on the 13th of November, prohibiting the exportation of many important lines of goods, including cotton, hemp, leather, rubber, oil, et cetera, has been a great obstruction as Italian shipping lines are inclined to refuse to accept bills of lading, even into Italy, where they think the goods may be subsequently sold outside and much more so where the bills of lading are through bills of lading for houses in Switzerland. Switzerland itself has suffered greatly from this stoppage of articles of vital necessity to her, and has addressed, I am informed, a strong note to the Italian Government, and, as instructed by you, I have rendered such assistance as I properly and judiciously could, by personal interviews with the Italian Minister for Foreign Affairs, and by using such arguments as I thought might prevail.

It has not been easy to place the exact responsibility for this state of affairs. Italy declares that she is compelled to prevent the reexportation of these articles under the provisions of the Royal Decree above mentioned; because otherwise England and France,— more particularly the former,—threaten to cut off articles of vital necessity to Italy.

My English colleague seems to think this reason thus assigned is pushed far beyond its proper application. But it would seem that Italy must have some ground for her attitude in as much as the action of England and France in holding up her ships and preventing [Page 718] the importation of the articles specified in the Decree as prohibited from re-exportation, has caused great feeling among the people of Italy and is undoubtedly at the bottom of the change of sentiment which has been going on for some time. This change of sentiment has lately become quite marked. At first it was almost insensible; but within the last two or three weeks, the mental attitude of the people here and, to some extent I believe that of the Government, has undergone a decided change, and the change is, so far as I can judge, extending to other neutral and hitherto friendly countries as well.

This judgment is based on the expressions of such representatives of those countries as I have seen, or on press reports from them, and these countries include Switzerland, the Scandinavian countries and Greece.

Newspapers here which have been all along almost enthusiastically friendly to the Allies, are now changing their attitude to one of sharp criticism. A very important paper, the Giornale d’Italia has had several articles protesting most earnestly against the action of the Allies in holding up Italian ships, and suggestions are made that the Allies are not actuated only by their fear of their enemies being helped through the arrival of these cargoes; but are no less afraid of their friends being helped.

It is said that some of these articles are written by persons very close to those in authority and at least express their views.

The arrival of former Chancellor Prince von Bülow to take the place of Herr von Flotow as German Ambassador has of course caused great comment in Italy as well as outside and rumors regarding the reason for the change vary all the way from the simple statement that he is known to be one of the ablest and most experienced statesmen in Germany, to the suggestion that he has come for the purpose of proposing terms to Italy so advantageous that she will espouse the side of the allied Emperors.

There seems to be nothing in the latter idea, and I question if the intervention of any single person, however able he may be, will influence Italy’s course greatly. It looks as though she had taken her course and proposed to follow it, with the single idea of furthering her interests. For the present this seems to be along the line of strengthening her position of neutrality, at the same time that she provides for future eventualities by increasing and thoroughly equipping her army. For the present, certainly, the people appear much calmer than they were a month ago, and the Government seems to have acted with great wisdom in securing the confidence of the people who now seem willing to await the Government’s decision.

One constantly hears references to some possible movement in the Spring,—the date usually given being the last of March. This may [Page 719] be due in part to the reported instruction by the Government that schools shall endeavor to compress the whole session’s work into the time between now and the middle of March and to the extension of the Moratorium to that date.

I think that the attitude of England and France in holding up ships in the Mediterranean is regarded as an attempt on their part to force the hand of the Government, and I am sensible of a certain feeling of resentment because of this attitude.

There appears to be what I might term a growing idea that the time may come when other countries, and our country and Italy are often mentioned together in this connection,—may have to follow the course which the Scandinavian countries have pursued, of banding together to see that their commerce as Neutrals, shall not be interfered with.

Another very interesting matter is the recent appointment by England of an Ambassador to the Holy See in the person of Sir Henry Howard. This is said to be only a Special Embassy; but it is in the line with what some think is a strong effort on the part of the Vatican to strengthen itself with a view to the internationalization of its present status in Italy. At the time of the first Hague Conference, when the Vatican desired representation there, Italy interposed her objection, as you will recall, and it was supported by England in the first place, and afterwards by other Powers. It is now thought by some that the Vatican is taking steps to be represented in the Peace Congress, or whatever the conference may be, to be called when the time comes to close this war, and it is said that the relations between the Vatican and France are more amicable than they have been since the time of the separation. I am not sufficiently informed to have an opinion of any value on this subject; but I give the matter as I have heard it discussed, feeling that it is one of much interest.

The subject upon which I have a much clearer opinion is that which I have already emphasized,—that the attitude of England and France towards the commerce of Italy and other neutral countries on the High Seas, is affecting adversely the sentiment of the people here, and that the present situation appears to me to be one fraught with real danger to the continuance of the warmth of sentiment which has hitherto existed here towards those Allies. Switzerland particularly has suffered greatly in consequence of this interference; but Italy has suffered enough to make a marked change in the feeling of many people with whom I come in contact.

I cannot close this letter this Christmas evening without wishing you, and all those whom you have so faithfully and ably represented, every happiness and good in the coming new year.

Believe me [etc.]

Thos. Nelson Page