665.006/68: Telegram

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

98. Your 37, March 5, 5 p.m. I hope you will not reach the conclusion to formulate a policy such that you would extend to Italy without compensation concessions which have been granted to other countries for a definite quid pro quo. I feel very definitely that Italy will need to buy from the United States particularly primary materials in quantities greater than her present policy will permit and [Page 525] that we can force Italy by the exercise of our tariff and other barriers and by the administrative delays on matters mentioned in my 84, February 11 [21], 7 p.m., to treat the United States differently. I seriously doubt the efficacy of any general protest.

As of possible interest to you in this connection this will advise that I have talked personally to the Chiefs of the following Missions and with the following brief summary:

England has entered a general protest reserving the right to particularize with a special protest on coal.

France, no general protest but engaged in negotiating a working agreement with an existing small disparity in trade balance.

Germany, no general protest. Operating under a clearing agreement but having many difficulties owing to the fact that no individual importer may buy more than the amount purchased last year and the quota is not assignable or transferable to another account.

Austria, no general protest. Operating under working agreement with many difficulties.

Czechoslovakia, no general protest.

Russia, no general protest. Many difficulties owing to the application of the terms of the working agreement.

Spain, no general protest. Awaiting instructions.

Greece, no general protest. Awaiting instructions. Under particular difficulties owing to the fact that there is an approximate balance of trade.

Turkey, no general protest. Probably will be none because adopted a practice similar in effect.

Of course Switzerland has closed the borders.

Long