840.50 Recovery/1–2348: Telegram

The Ambassador in Italy ( Dunn ) to the Secretary of State


320. Cattani, acting head of Economic Section, Foreign Office informed us today that British and French representatives dealing with ERP discussions have arrived in Rome. Four points upon which discussions will take place here are as follows:

Suggestion that a progress report be made by each country bringing national situation up to date as related to Paris Conference report last summer;
That the Secretariat of the Paris Conference prepare a combined progress report for all sixteen countries;
Discussion of form of European organization to deal with coordination of recovery problems et cetera. In this regard Cattani says the Italians are suggesting as a means of avoiding many complications of a general organization that regional groups of countries whose problems are more closely interrelated deal with regional cooperation and coordination and be knitted into general organization through liaison representatives. Italians are not in favor of a general conference at this time. As to future European organization, they prefer to discuss the matters on a regional or even on a bilateral basis;
That the applications submitted at Paris for the allocation of American assistance to each country be restudied in light of present circumstances.