611.6531/284
Memorandum by the Assistant Chief of the Division of Western European Affairs (Culbertson)
Mr. Angelone26 came in yesterday afternoon in order to tell me what he had done in Rome during his recent trip to Italy. He made this trip apparently for the purpose of finding out what his Government is prepared to do in connection with the proposed trade agreement negotiations.
He first raised the question of the denunciation of Articles 6 and 24 of the Treaty of 1871, which Mr. Sayre had proposed to Ambassador Rosso last week. Mr. Angelone seems to feel that any action of this sort now would come at a bad time and might result in a lengthy delay of the negotiations. He wondered whether it would not be better to go ahead with the discussions which, if successful, would result in arriving at an understanding with regard to the treatment to be accorded the commerce of each country. I explained that it was our feeling that these two articles were out of date and that we might each mutually recognize that fact; that we were not giving notice of denunciation of the Treaty; that Mr. Sayre had presented this problem orally for the consideration of the Italian Government, with the idea that we might sit down and talk over the possibilities of arriving at some arrangement in respect of these two articles; and that we are influenced by the fact that abrogation of these two articles [Page 536] and the continuation in force of the remainder of the Treaty will require Senatorial approval. Mr. Angelone wanted to know whether we could not merely lay aside this treaty question for the moment and go forward with the trade agreement discussions. I told him that I was of course not in a position to commit the Department on that point, and that I thought it best for his Embassy to get Rome’s reaction and then have Ambassador Rosso discuss the matter with Mr. Sayre. Angelone indicated that such action would be taken. (I got the impression that the Embassy had not yet taken up the question with Rome.)
Mr. Angelone brought back with him from Rome the Italian desiderata. He had these desiderata only in rough form and in Italian, so that I do not know just what they have in mind.
He explained that when he got to Rome his Government had under active negotiation 14 commercial agreements; that in these agreements Italy was strictly applying the idea of a bilateral balance of trade; that his Government had been anxious to complete as many of these agreements with other countries as possible before undertaking discussions with us, since his Government recognizes that a bilateral balance of trade with the United States is neither feasible nor practicable. He said that it would be Italy’s intention to give us 100 percent of our quotas on raw materials at least, and in some cases to increase our quotas.
In respect of cotton, he said that he had discussed with Ray Miller of the Import-Export Bank, the possibilities of his Government taking as much as 500,000 bales of cotton, provided the Import-Export Bank could arrange credit for this cotton, the credit to be for a year’s time. Angelone did not mention any other raw materials, and I gained the impression from him that it would be his Government’s intention to continue discriminations against American manufactured items. His point was, however, that manufactured items exported from the United States to Italy represent a very small portion of our exports, and that if Italy treats us fairly or generously in respect of raw materials we should be satisfied and a trade agreement could be reached.
Angelone is rather loquacious and somewhat inclined to jump around from subject to subject in his conversations. I got the feeling, however, that the Italians have in mind that an agreement can be reached provided we are prepared to give them concessions on a number of items and provided we are willing to finance shipments of raw materials which they want, and that by undertaking to take 200,000 bales of cotton more than they usually take, and perhaps increase purchases of other raw materials, we will be prepared to sacrifice our industrial exports to Italy.
- Romolo Angelone, Commercial Attaché of the Italian Embassy at Washington.↩