611.6531/433
Memorandum of Conversation, by the Assistant Secretary of State (Sayre)
The Italian Ambassador came in to say good-by. In the course of a somewhat lengthy conversation we adverted to the possibility of future trade agreement negotiations. I said to the Ambassador that I hoped the time might come when we could go forward for I was sincerely interested in a trade agreement between the two countries. The Ambassador spoke of the modus vivendi of December, 1937. I agreed that the modus vivendi would furnish an excellent stepping stone to a trade agreement, provided that the provisions of the modus vivendi were loyally observed. But I went on to say that, much to our regret, we felt that some of the provisions in the modus vivendi had not been lived up to. I said that this gave me real concern; for how could we use the modus vivendi as a stepping stone to a trade agreement if the terms of that modus vivendi were not being observed? I said that I hoped that possibly the Ambassador would look into this matter on his return to Rome for I was sincerely anxious, as soon as the time is ripe, to find a way for going forward with conversations looking toward a trade agreement.
The balance of our conversation, which lasted for half an hour, was with regard to unofficial matters.