865.01/457
The Acting Secretary of State to President Roosevelt
My Dear Mr. President: You will note from the attached copy of an aide-mémoire from the British Embassy59 that consideration is being given to the question of providing money for Italian diplomatic missions in various neutral countries which might find themselves in financial straits. You will further note that the British Government is endeavoring to ascertain whether the Badoglio Government is still able to supply funds for the upkeep of loyal missions abroad, and that if the Italian Government is not in a position immediately to provide needed funds, it is proposed that we share the responsibility on a fifty-fifty basis to furnish funds for the upkeep of these missions at least until such time as other arrangements can be made.
According to a telegram received from our mission in Madrid, the Italian representative in that city has already brought up the question of receiving financial assistance.
Since in the neutral countries involved (Argentina, Portugal, Spain, Sweden, Switzerland, Finland, Turkey, and Afghanistan), there are also German missions which undoubtedly will endeavor, by offering financial assistance, to win over to the side of the puppet Italian Government the Italian missions in these posts, it is felt that as an emergency matter we should be in a position to advance funds on short notice in the event the Badoglio Government, itself, is not able immediately to make provisions for its loyal representatives abroad.
Efforts are being made to ascertain the availability of official Italian funds in this country which might be used to repay any advances made to the Badoglio Government. If official Italian funds are not available in this country for this purpose, it is hoped that the [Page 406] Badoglio Government eventually can complete arrangements to cover these expenses from official Italian funds on deposit in one or more of the neutral countries involved.
In order that we may be in a position to act expeditiously in this matter in the event that it proves necessary for us to assist Italian missions to meet legitimate expenses until other arrangements can be made, it is suggested, if you agree to the proposal in principle, that you authorize an allocation from your Emergency Fund of various sums as needed, not to exceed $1,000,000, however, for this purpose, on the understanding reimbursement will eventually be sought through diplomatic channels.
If you concur with the British proposal, we feel that the Soviet Government should be informed of our contemplated action in order that they may be in a position to offer suggestions and give their approval to the plan.
Faithfully yours,
- Supra.↩