102.1/9–1546: Telegram

The Chargé in Italy ( Key ) to the Secretary of State

secret

3815. Inform Treasury from Tasca. On September 13 Tasca called on Italian Prime Minister at latter’s request to discuss theft of new currency plates, Embtel 3771, September 11, noon.74 Prime Minister had discussed matter with Administrator [Admiral] Stone same morning who suggested that Prime Minister might wish to talk to Tasca regarding matter. Prime Minister desired to know what information was available regarding theft of currency plates for new currency. In reply he was informed that we had on various occasions heard reports that such currency plates had been stolen and that it was our understanding that plates in question had apparently been stolen at the Staderini plant by two members of Communist Party according to information supplied by Minister of Treasury.75 We had also observed press reports which tended to indicate that such theft may have taken place. Before Tasca left Prime Minister commented as follows on present political crisis (Embtel 3808, September 13, repeated Paris 662, Moscow 193.)73

(a)
He was very sorry indeed that crisis had developed in such a way as to jeopardize the position of Corbino as Minister of Treasury. He stated he had selit an urgent telegram to Corbino not to make any moves until his return from Paris but telegram apparently had arrived too late. Corbina’s error in his opinion was to have made a political statement to press since he had been nominated as Minister in capacity of an independent technical expert.
(b)
While he sympathized wholeheartedly with Corbino’s desire to have a showdown with Communists he did not believe this was possible at this time owing to Peace Conference and effects whip hand exclusion of Communists from Govt might have on Russia with respect to final peace terms to be imposed upon Italy. Once peace was signed, he continued, there would have to be a showdown out of which would develop a general crisis, main purpose of which would be to defeat definitively the Communists, he felt there was no possibility of reaching any viable long-time agreement with the Communist Party in Italy.
(c)
With respect to the unification of the Ministers of Treasury and Finance, Chief of Communist Party had stated that any such attempt would be tantamount to broadening of present crisis.
(d)
It has been very difficult, he added, to find a new Minister of the Treasury to substitute Corbino. Campilli, present Minister of Foreign Trade and a Democratic Christian, had definitely refused the post. Menichella, the present candidate, was quite uncertain and apparently does not consider it possible to accept the post at this time since certain guarantees are required that the Communists will not continue to sabotage such govt program as might be agreed upon. De Gasperi stated he believed such sabotage would continue but he hoped a joint declaration of unity might be signed by the three largest parties which, although he was certain it would be violated by the Communists, would serve a useful purpose later on in connection with the showdown in which an attempt might be made to eliminate the Communists.
(e)
He stated that he realized that any person accepting the post of Minister of Treasury was almost certain to fail and would be sacrificed to save the political prestige of the so called mass parties in the Govt. In this connection he stated that although Communists had raised question of electing a new board of directors of Bank of Italy apparently in an endeavor to infiltrate into the banking system, he hoped that if Menichella goes to the Treasury as Minister a vice director could take control of the bank.

Apparently Prime Minister while agreeing with Corbino has concluded that a general crisis at this time would not be opportune. He created the impression that he was prepared to make the necessary sacrifices including damage to the prestige of his party to avoid a general crisis at this time. He left the further impression of great bitterness toward the Communists and a desire to make a real effort at the appropriate moment to eliminate them from Italian political life. In this connection he lamented the fact that the Ministry of Interior required his full-time attention if public order were to be maintained in Italy and on the other hand he was confronted with the necessity of defending Italian interests at Paris which he felt that he alone could handle at the present moment.

A strong movement is presently on foot to unite L’Uomo Qualunque, the Liberal Party and the Italian Democratic Party into one big party [Page 936] of the Right under leadership of Corbino. Such block would control over 90 seats in the National Constituent Assembly and would be intended to serve as a counter poise to the strong Communist pressure in Italy and bolster the believed weakness of the Democratic Christian party to meet successfully the Communist threat.

Repeated Moscow 194, Paris 664. [Tasca.]

Key
  1. Not printed; it reported that news of the theft of the currency plates was filtering out, but that the press made no reference to the link between the Italian Communist Party and Yugoslavia (102.1/9–1146).
  2. In telegram 3165 of July 10, Mr. Key had reported having learned from a U.S. Army C.I.C. officer that the Yugoslavs possessed plates of the new, unissued Italian currency, and a stock ready for use at an appropriate moment (865.5151/–7–1046). In telegram 3175 of July 11, it was reported that Tasca had learned from Corbino that the plates for the 500 and 1,000 lire denominations had been stolen by an employee (apparently a registered Communist) at the Staderini plant (865.515/7–1146). In telegram 3210 of July 15, Tasca sent word that U.S. C.I.C. agents were working with Corbino on the case (865.515/7–1546).
  3. Not printed.