865.50/11–2045
The Italian Ministry for Foreign Affairs to the American Embassy in Italy 20
1) The Royal Ministry of Foreign Affairs has the honor to acknowledge receipt of the Note Verbale dated October 11, 1945, No. 25621 in which the United States Embassy declared that it was the intention of the American Government to receive payment for the supplies (civilian supplies) furnished to the Italian civilian population beginning with July 10, 1943. The accounts relating to the above-mentioned supplies will be presented by the Supreme Allied Command and on that occasion the Italian Government will be informed of the procedure to be followed for affecting the payment.
2) In taking note of the communication referred to above the Royal Government is glad to learn that the problem of civilian supplies will not be treated separately, but in connection with, the financial problems arising from the war conducted by the occupying Powers in cooperation with co-belligerent Italy, which (problems) the Royal Government set forth in its Memorandum of January 5, 1945.*
In fact, the American Government, in replying to that Memorandum in its recent Note Verbale of October 29, 1945,22 the receipt of which is acknowledged by the Royal Government, and which will be the subject of the most careful examination on its part, expresses itself favorably with regard to the linking of the question of civilian supplies with the questions of AM lire and requisitions which were brought up in the Memorandum in question. The American Government states as follows:
“The matter of reimbursement for AM-lire issues and for requisitions by the United States armed forces in Italy is related intimately to the financial settlement which will ultimately be made with regard [Page 1300] to claims arising out of the war and also to the obligations of the Italian Government to pay for civilian supplies furnished to Italy. It is therefore expected that these matters will be taken up in connection with the treaty of peace.”
The Royal Government takes note of the foregoing declaration and makes only the two following observations: a) the criterion adopted with regard to AM lire and requisitions should reasonably be applied to all of the claims advanced by the Royal Government in the above-mentioned Memorandum; b) The settlement of the respective claims will be so complex and will give rise to such technical complications that it would be useful to envisage for such settlement negotiations separate from that for the Treaty of Peace.
3) Apart from these observations, the linking of the question of civilian supplies with the questions raised in the Memorandum referred to repeatedly above is bound to result in notable advantages, namely:
- a)
- From the moral and political point of view the Italian people will have the comfort of realizing the solicitude of the Allies in seeking to alleviate the very difficult economic and financial conditions in which they find themselves, and from such tangible proof of benevolence they will be motivated to reinforce their gratitude to the Allies, and will derive courage for sustaining the severe sufferings which they must endure for some time to come;
- b)
- From the financial point of view the settlement of debit items, the payment of which even if projected in time is bound to meet with almost insurmountable difficulties and to weigh heavily on the exhausted Italian economy, will be facilitated.
4) The Royal Government notes that (the proposed) linking does not exhaust all the questions of financial character which may have to be settled with the Allied governments, and that a few other reciprocal claims must probably be the subject of later negotiations.
The Royal Government considers, however, that the proposed linking is fully justified by the fact that the services provided to the Allies by co-belligerent Italy can well be considered as the counterpart of the services (civilian supplies) provided by the Allies for meeting the most urgent necessities of the Italian people.
Co-belligerency has given rise to a collaboration not only in the military but also in the economic field; and therefore it is perfectly justified that the reciprocal financial burdens derived therefrom be examined jointly, the one in relation with the other.
5) The Royal Government therefore declares that it is prepared to assent with the above-mentioned procedure to the request addressed to it in the Note Verbale to which this is a reply and expresses the hope that the comprehension of which the American Government [Page 1301] has already given so many proofs will make it possible to reach, together with the other interested powers, the hoped-for financial settlement.
- Copy transmitted to the Department in despatch 2677, November 20, 1945, from Rome; received December 6.↩
- Not printed, but for almost identical text, see telegram 1692, September 27, 6 p.m., to Rome, p. 1288.↩
- Obviously January 9, 1945 is intended. [Footnote in the original.]↩
- Not printed, but for substance, see telegram 1826, October 12, 8 p.m., to Rome, p. 1292.↩