865.00–R/10–1051: Telegram
The Chief of the ECA Mission in Italy ( Dayton ) to the Acting Administrator for Economic Cooperation ( Bissell )1
Toeca 1105. This is joint Emb-ECA message. Re Ecato 1140, rptd Torep 75042 and Bissell letter October 4.3
1. In view changed emphasis US program in Europe, agree time is appropriate to consider resolving administration ECA Trieste. Also agree assume responsibilities as per your para 3. Believe amount, source and other details aid to Trieste are problems which can be better resolved after administration future clarified.
2. We have no judgment on political complications closer Trieste tie to Rome but are satisfied such a change will please Itals.
3. Altho we have highest regard for Unger and for his ability, question advisability making two-hat appointment while one of functions remains political. The key man in Trieste in terms of relationships [Page 257] with AMG and in terms of reconciling econ differences between Italy and Trieste is the econ adviser to AMG. Therefore we feel the most desirable appointment for Deputy wld be Haraldson. Unger’s abilities and the value his judgment wld still be available both to Army and to ECA without making him Deputy. As Deputy he wld need assistance in development of an econ program which wld then have to be reconciled with the program developed by the econ adviser of AMG. If on other hand the key ECA man is also key econ man, a situation is created in which an effective two-hat appointment can be made. If Haraldson unacceptable, we wld suggest selection another person mutually agreeable between ECA, State and Army. However from personal contact with Haraldson, believe he could handle job effectively. Also suggest that before final decision taken with respect Unger, you determine whether there is possibility his being transferred near future. After question appointment Deputy reconciled, believe provision necessary supporting personnel can be made quickly.
4. Appreciate reasoning which went into Galloway’s suggestion that CO’s office shld remain Trieste. From our personal knowledge of situation there, I would prefer having no part Trieste operation, unless personnel in Controller’s office transferred. We believe responsibilities of CO can be handled by Chief Controller Division Rome by establishment of an office in Trieste similar to that we now maintain Milan. The CO’s representative in Trieste could also function in area adjacent Trieste in regions of Veneto and parts Emelia Tridentina. We wld be agreeable to transfer of present Trieste Controller to Rome to augment the CO’s staff but not to work in Trieste.4
- Repeated to Paris.↩
- In an attempt to resolve the question concerning the future administration of the ECA Mission in Trieste, telegram Ecato 1140 recommended that Galloway, the Chief of the ECA Mission in Trieste, be permitted to resign and that Dayton, Chief of the ECA Mission in Rome, assume his position in addition to his present assignment. It also suggested that Unger be appointed Deputy Chief of the ECA Mission in Trieste in addition to his function as U.S. Political Adviser. (ECA message files, FRC 53A278, Trieste)↩
- Not found in Department of State files.↩
- Dayton’s recommendation concerning Haraldson’s appointment as Deputy Chief of the ECA Mission in Trieste was approved according to telegram Ecato 1241 to Rome, October 26. (ECA message files, FRC 53A278, Rome) In December 1951, the ECA Missions in Trieste and Rome were merged in order to meet the requirements of the Mutual Security Act and, as outlined in telegram Ecato 1430 to Rome, December 5, a single staff with headquarters in Rome was eventually created. (ECA message files, FRC 53A278, Rome)↩