865.24/9–2947: Telegram
The Ambassador in Italy (Dunn) to the Secretary of State
2987. US Army in Italy desires to turn over direct to Italian Army sufficient surplus of Quartermaster, Signal Corps, Medical Corps, Transportation and Ordnance supplies to properly equip the force provided by Article 61 of the treaty as part of combat equipment included in Taff-Del Vecchio agreement of July 21, 1947. General Hyssong, central field commissioner, OFLC,1 objects to such transfer, stating that Taff-Del Vecchio agreement comprises a specified list of actual combat equipment which did not include vehicles, clothing, [Page 984] medical supplies or communications equipment which, when surplus, should be turned over to army under Bonner-Corbino agreement of September 9, 1947 [1946]. His position is that transfer of this additional surplus under Taff-Del Vecchio agreement, which had no escalator clause, would reduce net return to US and that he cannot approve without instructions from Foreign Liquidation Commissioner.
Unfortunately MTOUSA Leghorn did not understand that Taff-Del Vecchio agreement was limited to arms and ammunition and have informed Italian Army and Cingolani,2 Minister of Defense, that these other items would be included with result that De Gasperi has issued a protocol stating that Italian armed forces are authorized to receive these additional items direct from the US Army under the Taff-Del Vecchio agreement.
Total value at government cost of these additional items will be about 20 million dollars, which will reduce return on Taff-Del Vecchio agreement from 18.2 percent to about 15 percent. However, political and strategic factors at this time would appear greatly to, outweigh this monetary sacrifice. For both political and economic reasons present government in no position to properly equip Italian Army. This fact has lowered effectiveness and morale of the force.
I, therefore, strongly urge that FLC, Washington, immediately instruct Hyssong to allow transfer under Taff-Del Vecchio agreement.
Repeated Paris for OFLC 384.