865.24/10–947: Telegram
The Ambassador in Italy (Dunn) to the Secretary of State
3159. Del Vecchio, Minister of Treasury, interviewed this morning and given letter proposing amendment to Bonner-Corbino and Taff-Del Vecchio agreements as in suggestion No. 1 in Deptel 1951 October 4. Although Del Vecchio said he would study matter nevertheless he made it quite clear that such procedure was entirely contrary to wording and spirit of Taff-Del Vecchio agreement which he says was final clean-up of all army surplus and that first sentence Paragraph A “U.S. Army equipment located in Italy” refers to any Army equipment of whatever nature to be turned over directly to Italian Army. When reminded that this sentence referred only to specific list of combat equipment Del Vecchio answered that no such list formed part of this agreement nor was it his understanding that such equipment was limited to arms and armament. He did not apparently recall that this list was not made integral part of agreement for political reasons.
[Page 987]We will advise as soon as reply to our letter received but it may be assumed that in view of Del Vecchio attitude we will have to fall back on suggestion No. 3 in Deptel 1951. In this event it is considered that you can substantiate a statement that gratis transfer is in consideration of benefits to the US inasmuch as Italian Army now has sole responsibility for defense of new eastern frontier, a task it could not perform without the proper equipment, and enabling it to assume internal and external security so that US Army may withdraw under treaty terms. The Italian Government cannot appropriate funds for such equipment in its present precarious financial situation. If transfer is made under Bonner-Corbino Agreement, a covering appropriation to Italian Army would have to be made and any such proposal at this time would undoubtedly precipitate another government crisis as the Left parties are united in opposing any additional funds for defense.
Sent Department, repeated Paris 393 for Hyssong OFLC.