394.31/1–2651: Telegram
The Ambassador in Italy (Dunn) to the Secretary of State
3235. Reference Depcirtel 413, January 22. Embassy-ECA approach made to Foreign Office yesterday along lines reftel re Benelux proposal for multilateral negotiations to reduce inequalities in tariff levels OEEC countries. Foreign Office thus informed of US views prior to departure today of Di Nola,1 Chairman Italian delegation Torquay.
Further conversation with Grazzi2 today indicates Italian position will be generally as follows. Basically of course Italian Government strongly favors general economic integration Europe. However, cannot agree to important changes in single sector, i.e. tariffs, without some parallel progress on related questions, e.g. investment and manpower. Grazzi points out general tariff reduction of this type is too far-reaching for hurried action and time should be allowed for careful study by several interested Ministries.
Consequently, although Italian delegation will be prepared enter discussions and explore possibilities Benelux proposal, unlikely cooperation will extend to point where major results can be achieved before end February.
In Italian view Pella plan provides much sounder method for lowering barriers and integrating Europe.3 Italian delegation will probably urge concentration on that plan rather than hurried consideration new scheme. Grazzi further ventured opinion Benelux proposal outside scope present Torquay discussions.
Italians may also point out Italy has few necessary raw materials and that in period of increasing scarcity substantial tariff reductions on finished items would place Italy in precarious position against competition from other countries with less serious raw materials problem. Present Italian commercial policy envisages further temporary reductions in certain tariffs for sake of adequate supplies essential consumer goods, though such reductions would not constitute permanent changes in tariff structure.
Sent Department 3235, repeated info London 368 for Torquay.