800.48 FRP/8–2747: Telegram
The Acting Secretary of State to the Embassy in Italy
1522. Rap 87. Representatives ItalEmb and Ital Purchasing Mission advised Dept yesterday that because of British suspension pound convertibility Italians have no available dollars to procure Oct coal in US. On basis urgent calls from Rome they requested total Oct allocation coal be included in US relief program. They were advised that since total available relief funds were limited inclusion increased amounts of coal Oct could only result in equivalent decrease relief dollars available for purchase grain or coal at later date and that serious consideration should be given to position Italy would be in at end 1947 or early 1948 re these items before utilizing funds for Oct coal. Dept pointed out that money for Jan grain shipments must be available Nov 15, for Feb shipments Dec 15. We advised however that if after weighing all considerations appeared wise to increase coal in Oct up to 500,000 tons could probably be included in relief program. This being maximum limit which appears to be justifiable for relief purposes in Italy as defined by Relief Act.
Since it is expected matter will be reopened after ItalEmb has communicated with Ital Govt Dept would appreciate ur comments. Commitments for Oct coal will have to be made about Sept 8.