865.5018/7–2647: Telegram
The Ambassador in Italy (Dunn) to the Secretary of State
2109. As evidence of the critical food situation coupled with payments problem fully as serious, which Italy faces this winter, Einaudi, the Vice Premier, on July 24 arranged a special meeting between Mr. Clayton and Italian food experts.
Ronchi, the Food Commissioner, made an excellent statement which followed the lines of my telegram 2014, July 21.1 He said that he had realistically reduced to 2.9 million tons, “the irreducible minimum”, the quantity of foreign bread grains sought over the next twelve months. He emphasized that by September, when fresh vegetables become scarce, and for six months thereafter, it would be essential for [Page 950] humanitarian and political reasons of crucial importance that the bread ration and pasta ration of 235 grams per day and two kilos per month, respectively, be fully met (which at present they are not). In this connection mention was made of the elections which will probably be held by next March.
The plea that Ronchi made was that the American share of Italy’s grain imports, amounting to 2.2 million tons be shipped at the full rate of 220,000 tons per month beginning in August. The present strenuous efforts of the government to move domestic grain from surplus to deficit provinces are meeting determined opposition from local authorities, Communists, etc.; it had therefore become imperative to ask the US to expedite this year’s movement to Italy.
With regard to Italy’s current wheat production problem Segni, Minister of Agriculture,2 spoke as follows:
(1) Extremely poor growing conditions had seriously reduced this year’s harvest per acre; (2) unpopularity of government controls and amassing, among other factors, had reduced overall acreage 10% from pre-war; (3) similar factors had reduced acreage planted this year by 2% compared with last year when crop was 6.3 million tons, equivalent to the 1936 crop, and only about 1.2 million tons less than the 1937–39 average; (4) beginning in 1942 when fertilizers became seriously short, Italian farmland has suffered from the cumulative effect of soil fatigue. It will require three years in Segni’s opinion of intensive effort to return Italian wheat production to 7 million tons. One of the most serious difficulties stems, he says, from the payments problem the French are creating over phosphates, an allocation of which Italy has now had to ask from the US under the relief program.
Mr. Clayton assured the Italians that, as a member of the interdepartmental committee of three which examines food requests from deficit countries he would continue to give his most sympathetic attention to all Italian requests. He spoke of the unprecedented success of American efforts to export 16 million tons of bread grains this past crop year and of what this record involved in the way of long hauls within the US, loading and shipping; and yet a world deficit still existed. He urged that it would be easier to continue the high level of American aid if Italy could demonstrate that it is taking every possible measure to stimulate domestic production.
Sent Department 2109, Paris 276, Geneva for Clayton 34.