Foreign Relations of the United States, 1948, Western Europe, Volume III

800.48 FRP/11–2447: Telegram

The Acting Secretary of State to the Embassy in Italy

restricted

Washington, December 1, 1947—6 p. m.

2492. 1. Reurtel 3783 Nov 24.¹ Dept tentative interim aid program discussed with Cottam² and made available to Campilli and Ital Embassy here. Congressional developments emphasize highly tentative and conditional character all following data.

2. Present tentative limitation off-shore purchases would not prevent financing essential supplies mentioned reftel.

3. State Dept proposal submitted Nov 26 Congressional Appropriations Committees includes following commodities to be financed under Interim Aid Program covering shipments 1 Jan–30 Apr 48 in total value 211 mil dols. 16 mil reduction from previous 227 mil dols contained Rap 239 Nov 13 chiefly due reduced fats and oils requirement and lumber unavailability.

a. US Grains 706 to 898 thous tons or 99 to 126 mil dols. Lower figure represents amount which Agri states likely available for shipment during period Jan thru Apr.

b. Possible foodstuffs to partially replace shortfall grains needed maintenance rations to extent not fully met from US, follows in thous tons: Dried eggs 3.6; Mexico pulses 40; soya flour 8; sugar 28; canned fish 10; Mexico canned meat 4. Cost such substitute foodstuffs not to exceed cost grain shortfall.

c. US pulses 18 thous tons or 5 mil dols.

d. US milk products 6 thous tons or 2 mil dols.

e. Surplus dried fruits 11 thous tons or 2 mil dols.

f. US coal 1870 thous tons; Ruhr coal 500 thous tons; total value 46 mil dols.

g. POL 10 mil dols.

h. Phosphate rock 400 thous tons or 5.6 mil dols.

i. Blister copper 15 thous tons or 8.3 mil dols.

j. Chile nitrates 42 thous tons or 2.7 mil dols.

k. Miscellaneous agri supplies one mil dols.

l. Medical supplies 2 mil dols including 280 billion units penicillin, 240 thous grams streptomycin and 320 thous gallons DDT.

4. Other dollar payments to be covered by Italy from its own dollar resources. List of such payments and resources during period Dec 1 thru Mar estimated as follows (all figures in mil dols”):

A.	Dollar Payments
	Cereals	25.0
	Coal	13.0
	Petroleum Supplies	15.0
	Cotton and other textile fibers	15.0
	Raw materials for chemical industry	10.2
	Rubber and carbon black	5.1
	Industrial fats and oils	1.3
	Hides and Leather	4.0
	Ferrous Metals	11.0
	Non-Ferrous Metals	9.4
	Minerals	1.0
	Lumber	4.4
	Other Industrial Materials	18.6
	Other Foodstuffs	4.0
	Total Commodity Requirements	137.0
	Invisible Items on Current Account	22.0
	Total payments	159.0
B.	Available Dollar Resources
	Exports of goods and services	77.0
	Export-Import Bank Loans	55.0
	Liquidation of blocked assets in US	10.0
	Treasury Suspense Account	2.0
	P.O.W.’s Trust Fund Account	15.0
	Total receipts	159.0

5. Dept fully appreciates need for intelligent orderly planning Ital Govt but wishes to emphasize highly tentative and conditional character preliminary program outlined under para 3 above.

6. Present plan involves early approval of target program of shipments thru Feb which we are preparing to discuss with Ital Tech Del within next few days.

Lovett

1. Not printed.
2. Howard Rex Cottam, first secretary in the Embassy at Rome since September 6. Prior to that appointment he had served there as agricultural attaché since April 1946.