811.516 Export Import Bank/6–1346

The Italian Ambassador (Tarchiani) to the Assistant Secretary of State for Economic Affairs (Clayton)

No. 6766

Dear Mr. Clayton: You will recall our conversation of February 18th57 when I handed you a note relative to the admission of Italy to the International Fund and Bank established under the Bretton Woods agreements.

The Italian Government has been very gratified in learning that the American Governor at the Savannah meeting submitted and sponsored Italy’s request to participate in the above said institutions. Subsequently information also reached this Embassy according to which at the above said meeting it was decided that the matter be referred to the Executive Directors and be placed on their agenda after their convening in Washington on May 1st.

I am writing to you today, dear Mr. Clayton, in order to draw your very kind attention on the following:

You are aware of the request submitted last February by the Italian Government to the Export-Import Bank for the opening of a line of credit for reconstructionpurposes. As you know no decision whatsoever has been reached so far on the subject. Moreover, this Embassy understands that, even assuming that the difficulties so far encountered for the opening of such a credit will be removed, the amount eventually to be granted will be far below the estimated requirements.

It is therefore of the utmost importance for the Italian Government to obtain that favorable and urgent consideration be given to the request previously submitted for Italian participation in the Bretton Woods institutions.

A favorable answer to this application will enable the Italian Government to give timely consideration to what request could be submitted to the International Bank. It will also put the Italian Government in a position to make adequate planning for the reconstruction of the country. You will realize that such planning has so far been hampered by the uncertainty in which Italy has found herself in estimating what are and will be the total available dollar funds in [Page 919]the course of the present and of the next years. As you know Italy can proceed in her recovery only if appropriate assistance is granted to her and if the programming of the balance of payments of the next years can be made upon firm ground and with the certainty that such assistance will be forthcoming.

Moreover, I feel sure that you will realize the beneficial effect that an admission to the Bretton Woods institutions would have also from the political point of view for strengthening the new Italian Government after the recent elections.

I shall be therefore extremely grateful to you if you will kindly use your good offices with the American Executive Director so that the question of the Italian participation in the International Fund and Bank be examined at the earliest possible date. I feel confident that with your support and assistance, the matter will be easily and rapidly solved.

Thanking you very much for your kind interest on the matter, I am

Very sincerely yours,

Tarchiani
  1. No record of this conversation has been found in Department files.