Foreign Relations of the United States, 1947, The British Commonwealth; Europe, Volume III

Defense Files: Telegram

The Supreme Allied Commander, Mediterranean Theater (Morgan) to the Combined Chiefs of Staff

confidential
priority

Caserta, 11 February 1947.

FX 74908. Naf 1277. Subject is liquidation of allied functions after R plus 90 days.

1. Residual allied functions will exist after abolition of AFHQ. As long as MTO and CMF are functioning these allied duties can be performed by integrating the G–5 sections on a cooperative basis.

2. All residual allied functions cannot be completed by R plus 90 days. The Allied Financial Agency (AFA), the Allied Supply Accounting Agency (ASAA), the Allied Forces Record Administration (AFRA) and the Historical Section AFHQ must complete their jobs after R plus 90 days. In addition, it is anticipated that, for an unspecified period after R Day, a considerable volume of residual allied business, which cannot be decentralized to Embassies or other National Agencies, will have to be transacted with Italian Government. Greater part of such business will be connected with Civil Affairs matters.

3. It is proposed that a Military Liquidating Agency (MILA) be organized upon disbandment of AFHQ to ensure the early completion of these functions. Although tentative agreement has been received that AFRA may function under the US/UK Embassies, believe that more effective and expeditious results will obtain if all residual functions are consolidated within a military organization under experienced supervision. Propose that MILA shall be comprised of separate US and UK military units integrated where necessary and maintaining close liaison under Co-equal Commanders who will report directly to War Department and War Office. Direct and intimate contact to be maintained with respective Embassies and their advice and guidance sought on all policy matters. It is clear however, that Embassies are not equipped to take over supervision and control of these residual Allied functions and can in any case do so only if complete self-sustaining staffs are furnished for the various jobs.

4. If MILA is approved, administration, status of individuals vis-à-vis Italian Government and maintenance of personnel will be taken up with US War Department and UK War Office on National basis. There may, however, be certain expenses such as office space, civilian employees, signal services and heat and light which are joint in nature and should be paid on a proportional basis. Excluding housekeeping personnel the combined initial strength of MILA will approximate 40 officers, 90 EM/or and 25 WD civilian employees. Of this total approximately 8 officers, 45 EM/or and 20 WD civilian employees will be engaged on AFRA duties.

5. Probable all functions MIL A except archives and microfilming will be completed within six months after R plus 90 days. Time to complete excepted tasks depends on CCS decisions.

6. The proposal to organize MILA is agreed by CG MTO, GOC in C CMF, and by the US and British Embassies, Rome. Early approval is requested in order that administrative details of national nature may be settled in time for MILA to come into existence at time AFHQ is abolished.