69. Telegram From the Department of State to the Embassy in Italy1
2953. Italian Ambassador called on Merchant yesterday to discuss economic part agenda for Scelba visit. In frank conversation which followed Ambassador revealed he aware TS papers on economic proposals which were passed to our Ambassador and known only to Scelba and Martino on Italian side. He asked for guidance on whether: 1) US Government expecting Scelba to submit proposals for economic aid 2) it would be advisable for him to request economic aid on basis these proposals and 3) it would be wise to expect any decisive conclusion to be reached during his visit. Ambassador indicated he had personal doubts about US reception of any economic proposals and wished to be in best possible position advise Prime Minister in order assure success his visit.
[Page 240]Merchant replied present Administration’s policy was to discourage, as undesirable and even undignified, what had almost become habitual public expectation that visits to Washington of Foreign Chiefs of State and Government be accompanied by some material benefit. Concept of Secretary of Italian Prime Minister’s visit was that it would provide opportunity for personal contact and exchange of views on general problems of mutual interest and on those of specific Italo-American character. It was not contemplated Scelba visit would be occasion for negotiations on any subject. On second point Merchant said present philosophy of administration and Congress was that U.S. economic assistance should be related to sound basic economic programs undertaken by foreign country itself which required relatively limited amount of foreign economic assistance to implement. That he pointed out was advantage of ten-year development plan under study in OEEC adding US Government would be reluctant consider any economic projects not related thereto. On point three Merchant replied any proposals received only ten days before Scelba’s arrival obviously could not receive serious consideration in US Government nor be subject of fruitful discussion during Prime Minister’s visit.
In answer to further questions Merchant advised against including economic aid proposals in agenda or referring to them in final communiqué.
Ambassador said he was not surprised by Merchant’s response which was more or less what he expected. However with reference Merchant’s reply to second point he felt that with more time and careful study an Italian economic program requiring some US aid might be favorably considered through regular channels following Prime Minister’s visit. Merchant agreed this was preferable means handling this problem.
- Source: Department of State, Central Files, 033.6511/3–1855. Confidential. Drafted by John Wesley Jones. Repeated to Paris for Ambassador Luce who was en route to Washington for consultations at the Department of State prior to the visit of Scelba and Martino to the United States.↩