File No. 865.51/11
The Ambassador in Italy ( Page) to the Secretary of State
[Received 8 p.m.]
879. Minister for Foreign Affairs first mentioned matter [omission?] Director Stringher of Bank of Italy, official Government bank, called on me and left memorandum suggesting importance of direct financial relations hitherto existing through other markets. After mentioning important effect of financial aid at this moment upon afterwar commercial relations he concludes:
It would be necessary to begin with not less than one hundred and fifty or two hundred million dollars guaranteed by Italian treasury bills payable in dollars both as regards capital and as regards interests [Page 519] due at appropriate intervals beginning at least six months after conclusion of peace. A syndicate of first-class banks could enter into negotiations with Bank of Italy which is head of financial organizations. The relating agreements would facilitate sale at best terms of North American products in Italy and would help purchases of latter without weighing too much on rate of exchange. The credit opened in above mentioned amount would not be absolutely intended as means for drawing money from New York but probably used for payments due in America for North American products which Italy needs.
This suggestion I commend provided possible as great opportunity exists to occupy field which later will be closed against us.