765.84/2352: Telegram
The Ambassador in Italy (Long) to the Secretary of State
[Received November 6—8:40 a.m.]
804. The Italian Government is determined to use their resources in fighting the governments which have voted to apply sanctions against it. This is particularly true in the case of Great Britain. The Italian people are in entire accord with their Government and are in effect practically boycotting the products of sanctioning countries and particularly Great Britain.
The representative in Italy located at Milan of one of the largest American cotton export houses told me yesterday that the industrial element of Northern Italy was refusing to buy any Egyptian (including Sudan) or Indian cotton and that they stated that they were determined as regards their future policy to refrain for all time from again buying Egyptian and Indian cotton. Furthermore they were now buying American cotton exclusively and committed as a matter of business policy and out of friendship to the United States to continue their exclusive purchases of American cotton in the future.
The same situation pertains as regards petroleum products. The Government of Italy will no longer buy from British Shell and individual automobile owners are practically boycotting Shell and patronizing Standard New Jersey, Socony and Tidewater products. [Page 815] The last named we are informed this morning is making very heavy shipments of lubricating oils consigned principally to the Italian Government.
There is no doubt that the people are supporting the government in its position and that they are using whatever means they have within their power to retaliate against the sanctioning countries, particularly Great Britain. Nor is there any doubt that the effects of this policy will continue for a long time in the economic life of Italy. The consequence is that non-sanctioning countries will benefit largely for years to come in the Italian market.
Suggest advising Commerce and Agriculture.