740.00119 Council/4–947: Telegram

The Acting Secretary of State to the Secretary of State, in Moscow

secret

867. Secdel 1440. For the Secretary. Ital Amb called yesterday to say he had been called Rome for consultation primarily in connection Ital Govt’s consideration economic situation which is causing increasing concern. Other matters he expected be asked about were Treaty ratification and eventual admission Italy to UN.1

Re ratification, he said UK was pressing for early Ital action, but pointed out difficulty of Ital Govt in obtaining Constituent Assembly’s approval prior US Senate action, and assured me Ital Govt would move promptly once US ratification announced. I told him Senate was expected resume Treaty hearings end April or first May and while we expected Italy not to delay ratification unduly we understood Ital Govt’s position.

On Ital admission UN, Tarchiani said US proposal re early application appreciated and he merely wished reassurance US support when application considered. I replied that assuming treaty would be in force by time this question arose, Italy could count upon full support US.

Re economic situation, Tarchiani said growing unemployment, grain shortages, mounting budget deficit and rising prices playing into hands Communists, which was reflected in increasing Communist pressure within Govt. He has no doubt De Gasperi and moderate elements would resist this pressure in every way possible, but he felt Premier especially would be anxious to know implications for Italy of US Greek-Turkish policy and extent to which Ital democratic elements might rely upon US support. I explained to him emergency nature US assistance Greece and Turkey,2 reminded him of anticipated assistance Italy under foreign relief program and from Eximbank loan, and stressed importance stabilizing internal economic situation so Italy might derive full advantages US assistance and from World Bank [Page 537] loan which I hope would eventually be available. I said future of Italy was matter of great interest to US, as our attitude in past showed, and we would continue to help where we could, adding I was sure Itals would give their best efforts towards solution their internal situation. Tarchiani said he understood US position and endeavor explain fully in Rome. He emphasized, however, importance in his view of next five months in Italy, since natl elections would be held Oct and Communists are already bending every effort to capturing majority of seats in new parliament. He felt friendship of US must be made very clear to Ital people during this period, and he urged we do everything we could to make apparent value and necessity to Italy of US cooperation. In this regard, he mentioned his personal hope you might visit Rome briefly on way back to Moscow. I promised bring this your attention, but said I knew he realized impossible say anything definite at this juncture.

Sent Moscow as 867 rpt Rome for the Ambassador as 507.

Acheson
  1. For documentation regarding United States policy on applications for membership in the United Nations, see volume i .
  2. For documentation on United States assistance to Greece and Turkey, see vol. v, pp. 1 ff.