840.50 UNRRA/12–445
Colonel C. Tyler Wood, Special Assistant to the Assistant Secretary of State (Clayton), to the Director of the United Nations Belief and Rehabilitation Administration (Lehman)
My Dear Governor Lehman: As you know, supplies for Italy from the United States are presently being procured through the use of the Italian dollar account and through a joint FEA-Army account which was approved by Congress. The Italian dollar account will be fully obligated by December 31, 1945, but, because of the nature of the goods programmed, deliveries will extend through the early months of 1946. The FEA-Army account, used for the procurement of basic subsistence supplies, will be sufficient only to provide such supplies for loadings through the month of December.
By December 10, 1945, arrangements must be made and commitments must be entered into for procurement of coal, petroleum, food and shipping services in order to have goods go forward to Italy during the month of January. Similarly additional commitments must be made by January 10, 1946, in order to have supplies go forward during the month of February 1946.
On November 14 you informed the Central Committee of UNRRA that UNRRA would be willing to provide approximately $60,000,000 necessary for the procurement of supplies for Italy for the month of January 1946, contingent upon Congressional approval of the $550,000,000 appropriation. If the $550,000,000 appropriation now before Congress is approved before December 10,41 I assume therefore that you will make available out of such appropriation the funds necessary for procurement and shipment in January to Italy of supplies in an amount believed to be approximately $60,000,000. While [Page 1045] it is realized that UNRRA always retains the power of diversion to other destinations, you will recognize that there would be no other funds or supplies available under this arrangement for procurement for Italy for this month should such diversion take place.
If UNRRA undertakes this commitment a similar problem will arise by January 10 in connection with February shipments for Italy. At this time it is of importance to us to have some understanding as to your intentions with regard to the February shipments. Could you inform us that you will allocate to Italy a proportionate share of any supplies available for February shipment, provided that by January 10 the progress of the proposed legislation for the authorization of an additional $1,350,000,000 from the United States appears reasonably satisfactory to you?42
While it is exceedingly difficult for you at this time to make positive commitments until funds have been appropriated, nevertheless you will realize that we need the information requested above in order to present to responsible American authorities the grave situation which would exist in Italy should UNRRA be unable to give the Department the requested assurances or should the appropriation be unduly delayed or not approved.
I think it important to point out that it is not our view that Italy should be treated preferentially with respect to other countries receiving UNRRA’s assistance. However, because there has been in existence a supply program for Italy separate from UNRRA and hi support of a military occupation, it is necessary for us to see to the establishment of an orderly transition from one program to the other and to provide against a break in the pipeline of supplies.
Sincerely yours,