865.5018/12–1648: Telegram

The Chargé in Italy (Byington) to the Secretary of State

4663. Council of Ministers December 11 made following decisions re bread and pasta rations.

1.
Abolished use mixtures minor cereals in bread;
2.
Established single extraction rate, reducing percentage for rationed bread from 83.6 to 80;
3.
Made permanent the temporary increase in pasta ration fixing it at 3 kilos per month;
4.
Owing to savings on reduced cost of imported wheat, lowered sale price of wheat at mills from 7,800 to 7,450 lire per quintal. This allows reduction in price by one lire per kilogram for rationed bread and 4.5 lire per kilogram for rationed pasta.

Ronchi, High Commissioner for Food, announced these changes in radio address immediately following Saturday evening news bulletin. Stated changes made possible by increased imports from United States under ERP and by success negotiations in Argentina. Assured people that supplies assured to meet Italian requirements until new harvest.

In addition, referring to recent rises in olive oil prices, Ronchi announced decision to import oil seeds and seed oil to offset poor outlook for olive oil production. Sharply warned speculators that government will immediately begin selling its stocks of 47–48 oil (about 40,000 M.T.) to counteract upward trend.

Pass to ECA.

Byington