840.50 UNRRA/10–945
The British Embassy to the Department of State
Aide-Mémoire
In pursuance of the policy of encouraging the Italian Government to stand on its own feet, the control exercised by the Allied Commission in Italian internal affairs is, as the State Department are aware, being gradually reduced. So far as economic matters are concerned the Allied Commission is already in process of transferring to the Italian Government the responsibilities which it has hitherto exercised in regard to finance and foreign trade. At the same time it has recently been decided that combined military responsibility for civilian supplies to Italy should terminate with the completion of the August loadings. (The inclusion in this decision of venezia Giulia, Udine and other small areas which may be retained under Allied Military Government when the rest of Italy is handed back to Italian administration, is subject to decision on the recommendations which have now been made by the Supreme Allied Commander, Mediterranean.) Furthermore, the Council of U.N.R.R.A. has recently decided to extend the Administration’s activities in Italy.
- 2.
- In these circumstances the United Kingdom Government Departments concerned consider that the responsibilities of the Allied Commission in regard to supply matters should be terminated as soon as satisfactory alternative arrangements can be made. As regards essential civilian supplies, it is natural to suppose that U.N.R.R.A. will assume full responsibility, but it will be necessary to give the Italian Government the advice they are certain to seek in regard to the rehabilitation of industry and the preparation of their programme of imports for reconstruction (usually referred to as Programme B). The Italian Government may also seek advice on such matters as public works, agriculture, food control and public health, which at present fall within the scope of the activities of the Allied Commission. It seems doubtful whether the United Nations Relief and Rehabilitation Administration will be in a position [Page 1288] to advise on these matters, and it is the view of the United Kingdom Government Departments concerned that for this purpose the functions hitherto exercised by the Economic Section of Allied Commission should be transferred to the British and United States Embassies at Rome, the staffs of which could be suitably strengthened.
- 3.
- The best working arrangements will no doubt be ascertained by experiment, but an obvious possibility would be to proceed by joint working groups of representatives of the Embassies, the Italian Government, the U.N.R.R.A. mission in Italy and the Allied military authorities. The inclusion of the last mentioned would be essential so long as either the United Kingdom or the United States retained troops in Italy. Moreover, it would seem appropriate that the Embassies should be responsible for informing the British or United States Commander of the economic developments in Italy.
- 4.
- His Majesty’s Ambassador has been instructed, in communicating the foregoing proposals to the Department of State, to enquire whether the United States Government agree to the termination of the Allied Commission’s responsibility for supply matters as soon as satisfactory alternative arrangements have been made; and also whether they are in agreement with the suggested working arrangements outlined in the preceding paragraph.
- 5.
- If, as Lord Halifax8 hopes, there is general agreement between the United States Government and His Majesty’s Government in these matters, it is suggested that the necessary steps should be taken to arrange for an appropriate directive to be sent to the Supreme Allied Commander in the Mediterranean by the Combined Chiefs of Staff.
- British Ambassador in the United States.↩