Memorandum of Conversation, by the Acting Associate Chief of the Division of Financial Affairs (Reinstein)

Participants: Mr. Alberto Tarchiani, Italian Ambassador
Mr. Clayton, A–C79
Mr. J. J. Reinstein, FN

The Italian Ambassador called by appointment today to discuss the following matters:79a

1. Italian Supply Program

The Ambassador said that he understood the FEA is working on a project for supplying Italy with $600,000,000 worth of goods during [Page 1253] the coming year. He described this program as being one of “reciprocal aid”, and appeared to be under the impression that it would be based upon some recognition of Italy’s contribution to the war as measured by Allied military expenditures and requisitions in Italy. He indicated that the supply program drawn up by the Italian Government had originally amounted to more than $1,000,000,000. He said that the Italian Government recognizes that a program as large as this is out of the question, but he thought that the figure of $600,000,000 would be of substantial assistance to Italy. He did not indicate very clearly what the purpose of his visit was, but it appeared to be to express the hope that the State Department would support the proposal.

The Ambassador was informed that, as the Department understands the matter, the discussions which have taken place with reference to the Italian supply program have envisaged the continuation of the general types of arrangements which are now in effect and with which the Italians are familiar. These were described to him as being the military program, which provides certain basic civilian supplies, and the program for rehabilitation materials, which will probably be financed principally by the use of the troop pay dollars insofar as the United States is concerned. He was told that the extension of lend-lease aid to Italy is not receiving active consideration and that the extension of such aid has not been regarded as feasible.

  1. William L. Clayton, Assistant Secretary of State.
  2. Apparently only the one matter is treated in this memorandum.