109. Letter From the Ambassador in Italy (Luce) to the Director of the Office of Western European Affairs (Jones)1
Dear Johnny: Henry Tasca tells me that during his recent quick trip to Washington some doubts were expressed as to whether we should continue our current policy regarding Off Shore Procurement, letting of US Government contracts to Italian firms, and the like. As I understand it, not only President Gronchi, but also Cattani and Ambassador Brosio have been objecting to our application of labor criteria in such matters, and I gather the question has been raised whether the time has not come to stop.
I can understand these doubts, but I do not share them. It is true that with the decline of OSP we no longer have the same leverage to induce support for the free trade unions, and it is true that we have come in for a certain amount of criticism, both public and private, as a result of such instances as the Department of Interior press release on the Ansaldo San Giorgio bid. Nevertheless, I think the policy still has a beneficial effect on management and I do not think the criticism has any serious effect on our position. Furthermore, for us to abandon the standards we have set and publicized could have very unfortunate psychological repercussions on Italian management, the Italian Government, and the free trade unions. I am afraid it would be taken as a softening in the U.S. attitude toward Communism and as a tacit admission that we no longer felt it necessary to oppose the Commies on every front. There are, of course, only too many Italians anxious to seize upon the slightest excuse to promote distensione.
[1 paragraph (5 lines of source text) not declassified]
After all, we are only following the anti-communist line which the Italian Government itself proclaimed under Scelba and which the present Cabinet has never disavowed. I believe any further complaints by the Italian Government could be handled and stopped if I had a heart-to-heart talk with the Prime Minister, pointing out that our policy is entirely in line with the anti-communist policy of the center parties as we understand it. They have repeatedly told us that they are doing and will do everything feasible to reduce the strength of the Social Communists. We are supporting their efforts with a policy which they themselves apparently do not feel able to adopt, but which has certainly demonstrated its effectiveness and does not conflict in any way with their own efforts. [4½ lines of source text not declassified]
[Page 360]I could ask Segni bluntly whether he has in fact changed his mind about opposing the left with every practicable weapon. [2½ lines of source text not declassified]
I neglected to mention earlier, but I am sure you are aware, that a significant weakening in our policy with respect to Communist unions would undoubtedly draw criticism in the United States.
I should like very much to have your thoughts on all this.
Sincerely,