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

102.1/7–747: Telegram

The Ambassador in Italy (Dunn) to the Secretary of State

confidential

Rome, July 7, 1947—6 p.m.

1852. Inform Treasury for Tasca. Several meetings have been held regarding amendment to Corbino Agreement¹ for purchase of surplus property. Apparently a stumbling block is question of valuation of lend-lease material turned over by UK to Italy under April 17 Anglo-Italo financial agreement. (Embassy’s despatch 609, April 28, 1947, page 20, of attached agreement²) UK apparently stated to Italians at time amount involved did not exceed one million pounds, whereas Italians subsequently discovered 13 to 14 million pounds of US material involved. See Embassy’s despatch 988, June 13,² containing procès-verbal signed in May. Italian Government now reluctant to assume dollar burden involved in such debt. Italians also consider such items as airfields, fixed installations and bridges overpriced. Minister Del Vecchio stated in this connection that he considered the basic Corbino-Bonner Surplus Property Agreement unfavorable to Italy, particularly when compared with the Anglo-Italian Agreement for the disposition of surplus property in Italy.

Although Del Vecchio had expressly wished negotiations conducted without the presence of other Ministers, under insistence of Einaudi, a meeting is to be held as soon as possible with the Director General of Economic Affairs of Foreign Office and Del Vecchio, primarily because of the lend-lease item.

Repeated London 118.

Dunn

1. See Foreign Relations, 1946, vol. v, p. 932.
2. Not printed.
2. Not printed.