62. Telegram From the Embassy in Italy to the Department of State1

2929. For Hoover, Merchant and Stassen. Joint Emb/USOM. Ref: (A) Stassen memo, “Possible Ital Program”, Jan 29 Draft. (B)Deptel 2303, Jan 19. (C) Tousfo A–348, Toeco A–86, Dec 30. (D) Tousfo 538, Toeco 127, Dec 21. (E) Ecoto 669, rptd Rome Ecoto 68, Feb 8.2

1.
As I explained in various talks Wash still believe most important every effort be made work up aid package which we can give Scelba at time his visit3 if developments are such as to warrant giving this incentive award. Basically, thoughts expressed Tousfo 538 Dec 21 still prevail. For these reasons hope every effort will be made all appropriate agencies work out possible package made up such elements as OSP, PL 480, X/M, etc. so that I can discuss question in detail when I arrive Wash prior Scelba visit.
2.
As I have explained, Scelba has and is continuing to take within “legal limits” comparatively vigorous anti-Communist measures (i.e. implementation of Council of Ministers anti-Communist decisions announced Dec 4).4 He and his govt (i.e. quadripartite formula) are in need of as firm backing as possible from US, particularly in view of necessity resignation his govt after presidential elections in May [1½ lines of source text not declassified] and particularly in view of Sicilian elections scheduled first week June.
3.
Scelba has assured me he will have some economic proposals to make while in Wash that he hopes may induce US advisability giving him further economic assistance which is essential from internal political point of view. If we desire to encourage him to continue or step up anti-Communist activities he must be able show on return to Italy US still [garble—backs?] his basic policies/and we must permit him to take public credit for having received some US assistance and encouragement for his own immediate suggestions for assisting Ital economic situation to maintain present level pending active consideration by OEEC of long range realistic Ital Govt plan.
4.
Because of delicate political balance here, thoughts expressed above must be kept on a “need-to-know” basis, but in any event, strongly urge working levels all agencies study carefully any and all items which may be included in a package for possible use in connection with Scelba visit.
5.
Including FY 55 aid package in support given Scelba during March visit will not interfere OEEC consideration Ital problem which not expected to reach recommendation stage before June or later [and] which could then be considered in connection with possible FY 56 program discussion.
Luce
  1. Source: Department of State, Central Files, 765.5–MSP/2–1155. Secret; Limit Distribution.
  2. References A, C, D, and E were not found in Department of State files. In reference B, telegram 2303 to Rome, January 19, the Department requested information on Italian economic plans for use during the Scelba visit. (Ibid., 033.6511/1–1955)
  3. See supra.
  4. See footnote 3, supra.