The Secretary of State to the Chargé in Italy (Key)
540. 1. For information Ambassador, National Advisory Council has approved in principle making available to Italy the dollar suspense account which represents lire furnished American Army for expenditures other than troop pay. This approval still subject exploration of legal means by Treasury. Net amount this account now in neighborhood $110 million.
2. In addition, National Advisory Council now considering Eximbank loan of $150 million, but final decision will be delayed until after Savannah conference.29 Larger loan out of question in view heavy demands on limited Eximbank funds.
3. Dept believes total U.S. financial assistance of about $260 million in addition to UNRRA’s $450 million will enable Italy finance minimum 1946 import requirements and will permit substantial progress in 1946 toward recovery of pre-war levels Italian industrial output, provided Italy pushes exports with greatest energy.
4. Italian Govt’s 1946 Import Plan was based on unrealistic assumptions as to attainable rate of operation of Italian industrial economy in 1946 and took no account of serious world shortages certain raw materials required by Italy.
Sent Rome repeated to London for Dunn.
- For documentation on United States interest in international economic collaboration for the expansion of world trade and employment, see volume i.↩