The Ambassador in Italy (Dunn) to the Secretary of State
450. Upon his return to Rome I have just seen Count Sforza1 and conveyed to him all of the points brought up in Department circular of July 22,2 1 a. m. on increases of armed forces and armament. He said that Cabinet had this afternoon approved Pacciardi’s request for supplemental allocation of funds but that announcement would not be made until after another Cabinet meeting tomorrow as preparation of announcement must take into account possibilities of exaggerated interpretations of Cabinet’s action resulting in start of inflationary processes, rise in prices, et cetera.[Page 1497]
FonMin said government was determined to make an all out effort to do everything they could within their national resources to build up the army and provide for its equipment. He said government was also studying every possible contribution they could make to national and mutual defense by every means at its disposal.
Sent Department action 450, repeated London 42 for Ambassador and Spofford.