863.51 Relief Credits/133
Memorandum by the Assistant Secretary of State (Castle)
The Italian Ambassador came to see me yesterday to tell me officially, on instructions from his Government, that Italy feels that the arrangement to make a further loan to Austria is not satisfactory. He says that Italy is not disposed to make any further sacrifices because experience has demonstrated the fact that Austria will not bear her share. As I understand it, the agreement must be unanimous if anything is to be done for Austria and if the Italian Government maintains its present stand, there will be no particular point in bringing the matter up again to Congress at the next session.