665.1115/13: Telegram
The Ambassador in Italy ( Long ) to the Secretary of State
[Received February 6—1:55 p.m.]
54. Your 17, February 5, 7 p.m. I am very grateful for the full expression of your views. There is no question of silk involved in any plan here, for I carefully and pointedly explained that the American Government was not able to purchase commodities of any kind and had control over imports only through the operation of the tariff; and that raw silk was duty free and therefore not subject to further control. However, my confidential understanding of economic situation is that Italy is 42 percent behind in her purchase cotton from us. She will certainly continue to further restrict her purchases unless there are made available to her credits in the United States through increased sales there of some Italian products. Of course I did not mention our cotton predicament or betray any anxiety on this account. I simply took the opportunity in my first conversation after my arrival to pick up the thread of their last conversations with me. I could do that without “initiating” the subject. If I had postponed mention of the subject it would have been necessary later to assume the initiative. So in my first conversations I simply referred to the former ones, crossed silk off the list of possibilities, and suggested they find some other articles of Italian origin such as cheese and olive oil and talk about the possibilities with the idea they would take as much cotton as they have formerly. After my talk with Mussolini he issued an ordinary statement to the effect I had discussed “trade relations”, I have said nothing. I will wait until they approach me, which I think will be very soon, and will then listen and report to you. However, I would appreciate your early examination of any proposals I may submit and your instructions on them as soon as your convenience permits your opinion to be formed. Else we will suffer further losses in cotton and in other lines for these people are fast approaching the point of buying an absolute minimum. And they are desperately anxious to establish credits abroad through the medium of sales so they can continue to buy the things they need.