740.00119 EW/5–3146
The Italian Embassy to the Department of State
Memorandum
The Italian Government has followed the discussion at the Conference in Paris in connection with the problem of reparations and is deeply grateful for the firm stand taken by the American delegation in opposing demands which would burden irrevocably the Italian economy.
The solutions envisaged during such discussions to comply with the Russian requests constitute however a reason of very serious concern for the Italian Government.
It is in fact easy to foresee that, once a deliberation of principle is accepted, recognizing that Italy should in one way or another, pay reparations to Russia, such decision will no doubt represent an encouragement for other claimant countries to insist in their requests or to increase them and an inducement to presenting claims anew for those countries which have so far abstained from doing so.
It is also evident that if, to the 100 million dollars to be given to Russia, other amounts will have to be added to satisfy the demands of many other countries, the total of reparations to be paid by Italy would be such as to crush the Italian economy.
The Italian Government trusts therefore that the problem be considered in its entirety and that the question of principle be not solved in such a way as to jeopardize by concession to one single country the overall problem encouraging demands from other countries.
The Italian Government realizes the difficulties encountered by the American delegation in dealing with the Russian requests. It is felt in this respect that some way out would be found if Italian warships which are going to be given to Russia could be accounted for as overall payment of Italian reparations.
If on the contrary reparations should be imposed on Italy with supplies or services to be furnished in a certain number of years, no doubt a situation will follow, similar in its consequences to that which came about for Germany after the First World War, i.e. inability to pay.
Moreover if reparations will have to be paid with assets existing at present in Italy or abroad an even worse situation would develop. In fact, it is easy to realize the importance for Italy in the present disrupted situation of her merchant marine to retain the few passenger ships left to her. Similarly, if Italy will be deprived of her assets and industrial activities abroad, an important item of the Italian balance of payments, will disappear. It [If?] Italy will have to cede the industrial convertible plants existing in her territory, the possibilities of [Page 461] work for the exuberant Italian manpower will substantially decrease, with very serious consequences of unemployment.
The Italian Government has deeply appreciated the support already given by the American delegation in Paris on the question of reparations. It is however evident that if the principle of the payment of reparations by Italy should be recognized, the Italian economy will have to withstand a further strain that could bring about the most serious consequences.21
- The Italian Government’s opposition to the acceptance of the principle of reparations was again set forth in Ambassador Tarchiani’s notes of June 20 and June 21, 1946, to Acting Secretary of State Acheson, neither printed↩