Office of the Historian

865.24/9–2947: Telegram

The Acting Secretary of State to the Embassy in Italy

secret
Washington, October 4, 1947—3 p. m.

1951. Ur 2987 Sept 29. In view Dept following three procedures’ possible effect transfer equipment Ital Army:

1.
Amend two agreements as follows:
Such non-combat equipment and supplies as are required for equipment and maintenance Ital Armed Forces, and for which transfer to Itals provided Bonner-Corbino Agreement, may be transferred directly Ital Army upon declaration as surplus by US mil in accord transfer procedures provided Taff-Del Vecchio Agreement.
Upon the final computation of value of surplus property transferred under Bonner-Corbino Agreement in application escalator clause, to the value of the property transferred under that agreement will be added cost of additional property transferred under procedure Taff-Del Vecchio Agreement in accordance above paragraph.
2.
Amend agreements to add to the total Ital payment due under Taff-Del Vecchio Agreement the value of the additional equipment and provide for transfer under Taff-Del Vecchio rather than Bonner-Corbino as latter agreement now provides.
3.
Amend agreements to allow transfer under Taff-Del Vecchio procedure instead of Bonner-Corbino without requiring additional compensation from Itals for additional equipment under Taff-Del Vecchio and at same time allowing credit under escalator clause Bonner-Corbino.

We consider first procedure most desirable in that it would permit direct transfer equipment without substantial alteration existing agreements. Second course also acceptable. If third proposal adopted would necessitate statement by SecState to effect gratis transfer made in consideration substantial benefit received by US. We would be most reluctant pursue this course, particularly since necessity not apparent to us.

You are authorized negotiate necessary agreement to effect either first two proposals after consultation Hyssong. Final draft amendment shd be submitted Dept and Hyssong for approval prior signing. OFLC concurs.

(Sent Rome 1951 rpt Paris 3807 for Hyssong)

Lovett