101. Memorandum for the Record of a Conversation Between President Eisenhower and President Gronchi, White House, Washington, February 28, 1956, 12:45 p.m.1

This memorandum is prepared by Major Pasquale A. Romano, Army Serial Number 01045904, presently assigned to the Office of the Assistant Chief of Staff, Intelligence, Department of the Army. The following occurred during the discussion between President Eisenhower and the President of Italy, H. E. Giovanni Gronchi, in the White House on 28 February 1956 between 1245 and 1315.

The discussion opened and ended in an air of cordiality, mutual respect and understanding. [13½ lines of source text not declassified]

Then the conversation turned to NATO and was inspired by President Eisenhower’s request for comment. President Gronchi stated that the general impression in Italy was that President Gronchi could not do anything with respect to NATO forces. President Gronchi commented by saying that he fully supported NATO and used an example to strengthen the point. He stated that upon assumption of the post as President, a law which was promulgated by the Scelba Government [Page 338] placed a tax on gasoline which would make necessary use of aviation gasoline by Italian NATO planes very difficult because of the high cost. This high tax was nullified by President Gronchi as one of his first acts. The discussion then turned to the economic problem in Italy and was initiated by President Eisenhower with respect to natural gas and other petroleum derivatives in the Po Valley. Once again President Gronchi stated that an unfavorable law promulgated by the previous government presently exists which is unfavorable to the companies inasmuch as lawful rate of profit between the companies and the government is more favorable to the government at a ratio of approximately 65% to approximately 35%. Following this, President Gronchi sparred about a bit with respect to finances required by the Italians for the exploitation of these natural resources in the Po Valley. Finally, he said that Italy does not want handouts, but he felt that Italy should be able to borrow money. President Eisenhower stated that in his opinion the Italian worker is very capable and that were this capability to be utilized in the Po Valley it would open up a new source of revenue which would assist in raising the economy of Italy. He went on to say that he felt that American companies could and would provide technical assistance and that if research in the Valley indicated a successful venture, private American capital would accordingly find its way to Italy. President Eisenhower went on to say that he was not interested in the making of money by American oil companies since the item of paramount importance was that it be beneficial to the economy of Italy. As a matter of fact, he would not oppose business intercourse on this matter between Italy and England, so long as it would be beneficial, once again, to the Italian economy. The President went on to say, however, that the Italians could not, of course, get foreign capital in large amounts from any foreign source unless they gave fair terms and treatment to the companies supplying it.2

At this point President Gronchi turned again to the political factor by stating that when he assumed the presidency an unfavorable label was placed on his forehead which he compared to labels that were placed on bottles of wine. He felt that just as some people abide by labels on wine bottles without considering the contents, so did some people believe in the unfavorable label placed on him without considering him for what he is. He is also accused of attempting to change the present Parliamentary Government to a Presidential Government by people who felt that he is being too “dynamic.” He feels that is the way he should act since an offensive policy towards Russia is more preferable to him than one of a defensive nature. Following this, President Gronchi turned to a discussion of Western Germany and stated that inasmuch as the Western Powers had given Western Germany [Page 339] many three things; specifically, admittance to NATO, independence, and arms, the only attractive offers that could be made to Western Germany could come only from the Soviet Union. As a result, he feels that the Western Powers should presently take the initiative in this respect to offset the present effective policy of the Soviet Union which has been thwarting the policies of Chancellor Adenauer. He felt that this counter-propaganda was necessary now, notwithstanding the fact that Western Germany is pro-Western, because presently it is affecting youths of Western Germany which would have an adverse effect within the next five or ten years.

At this point, the discussion was stopped by President Eisenhower as the time had arrived for lunch. However, during the withdrawal from the discussion room, President Gronchi desired to know whether President Eisenhower would attend his meeting with Secretary of State Dulles. President Eisenhower replied in the negative, but stated quite emphatically that he would meet with President Gronchi once again if it were deemed necessary, and that he desired that President Gronchi meet privately with Secretary of State Dulles.

  1. Source: Eisenhower Library, Dulles Papers, General Memoranda of Conversation. No classification marking. A memorandum attached to the source text, March 1, by John W. Hanes, indicates that the only written record kept of the EisenhowerGronchi meeting were informal notes by a military aide to President Eisenhower (presumably this memorandum). Hanes stated that the Italians had alleged after the meeting that the President made encouraging statements to Gronchi concerning the latter’s desire to expand the powers of his office. Hanes stated that Colonel Goodpaster checked the notes, found that the President had much no such remarks, and noted that the Secretary might wish to request a copy of the notes in the event of future questions. A March 12 memorandum from Goodpaster, attached to the source text, states that a copy of the minutes was being sent to Dulles and Hoover only and was to be returned if they did not wish to retain it. A March 12 note from Hoover’s office attached to the source text states that the Secretary’s copy carried an “eyes only” classification and was to be filed with the Secretary’s files and not made a part of the Department of State files.
  2. This last sentence was typed sideways in the margin.