611.6531/237
The Italian Embassy to the Department of State
Aide-Mémoire
The measures recently adopted by the Italian Government for the regulation of its imports were in no way prompted by the desire of restricting its foreign trade but only by the necessity of adjusting the amount of imports to the means of payment that are actually at its disposal. This is proved by the fact that, while quotas had to be established in order to insure the payment of the imported goods with the available exchange, there is left a possibility of importing goods without any limitation when these goods can be paid for through compensation.
The Italian Government has been compelled to enforce such a new system on account of the increasing deficit of its trade balance; a deficit which, coupled with the progressive waning of the so-called “invisible imports” (tourist trade, emigrants remittances, etc.) had brought forth an untenable situation in its balance of payments.
That does not mean that the Italian Government is leaning toward a form of self-contained economy. Such is not the case, chiefly with regard to the United States, which provide Italy with many of the raw materials that are necessary to its industry. Far from it, Italy would much prefer to be able to continue to buy and even to increase its buying of such goods from the United States, if only the United States could furnish Italy, in one way or another (that is in valuta (foreign currencies) or by compensation) the means of payment that cannot be found otherwise.
[Page 531]Such being the situation, the Italian Government is of the opinion that the negotiations which have already been planned are all the more necessary, as the only way toward an agreement on Italo-American trade, satisfactory to both countries.
As to the matter of discrimination, the Italian Government wishes to point out that it has never been its intention to discriminate against American trade. This has been made even more evident since the Decree of March 30, 1935, which raised the quotas of many goods furnished by the United States, is going to work for the maintenance of a favorable American balance of trade with Italy, while different results are expected by the agreements reached with certain other countries, such agreements having been negotiated by Italy with the very purpose of bringing a balance of its trade and possibly of obtaining a slight surplus on its credit side.
The Italian Government is ready to give any further elucidation if desired.