865.24/3–148

The Secretary of the Army (Royall) to the Secretary of State

top secret

Dear Mr. Secretary: The Department of the Army has initiated the carrying out of the recommendations of the National Security Council in its memorandum for the President dated February 12, 1948 (JCS 553/17), approved by the President on February 13, 1948,1 which envisages the transfer of certain limited quantities of military supplies and equipment to Italy.

Steps have been taken to recover from the British, through recapture of lend lease equipment located in Egypt, some 20,000 ready for issue caliber .45 Thompson submachine guns. In addition, it is expected to obtain from the same source a certain amount of unserviceable submachine guns which may be disassembled to provide spare parts or be repaired by the Italians. These guns will be transferred to the Italian Government under existing credits.

Separate action has been initiated to transfer to the Foreign Liquidation Commission for sale to the Italian Government under existing credits, certain excess equipment located in Germany. This equipment consists of 12,000 caliber .30 carbines, 10,000 caliber .45 pistols, 180 caliber .30 machine guns, 80 caliber .50 machine guns, 150 M8 armored cars and 120 light tanks. The foregoing equipment must be accepted by the Italian Government at the German border in an “as is” condition, inasmuch as the European Command is totally unable to repair this equipment due to lack of spare parts and repair facilities. The Italian Government has indicated willingness to accept this equipment under these conditions.2

With respect to that portion of the property which must be obtained from stocks of the U.S. Armed Forces, the proceeds of reimbursement for such property cannot under present law be made available to and used by the Armed Forces to purchase replacement property, but must be deposited in the Treasury.

The recommendation of the National Security Council, approved by the President, directed “the transfer to Italy from stocks now held or to be procured by the United States Armed Forces, subject to reimbursement to the forces concerned, . . . .” Since it has now been determined that any funds received from Italy for the sale of non-surplus property must be deposited in the Treasury, such funds cannot go to the Armed Forces for reimbursement.

However, in view of recent developments in Europe and the menace to our troops there, the immediate shipment of the required non-surplus supplies has been initiated. It is requested that the President [Page 774] send the Secretary of the Army an authorization, proposed letter3 enclosed, in the form of a validation of the action already taken and a directive to proceed with the shipments.

Sincerely yours,

Kenneth C. Royall
  1. See footnote 3, p. 770.
  2. See footnote 3, p. 772.
  3. The draft was amended March 5 and 6, in order to take into consideration the necessity for Presidential authorization of requisite action by the Department of the Navy as well as by the Department of the Army (Hickerson memorandum to the Secretary and attached draft, March 6, 1948, 865.24/3–148).

    The draft was again revised in response to the letter of the Secretary of the Navy to the Secretary of State, March 9, 1948 (865.24/3–948).