Foreign Relations of the United States, 1958–1960, Western Europe, Volume VII, Part 2

228. Report by the Operations Coordinating Board⁰

November 7, 1958.

OPERATIONS PLAN FOR ITALY

I. Introduction

A. Special Operating Guidance

1. Objective. An Italy free from Communist domination or serious threat of Communist subversion, having a constitutional, democratic government and a healthy self-sustaining economy, and able and willing to make important political, economic and military contributions in support of the free world coalition.

2. General.

a. U.S. influence. Because Italy has emerged from a status of financial and administrative dependence on the U.S. to one of relative independence, U.S. influence on Italy must increasingly be [less than 1 line of source text not declassified] concentrated on essential issues.

b. Economic relationship. Since grant economic aid to Italy is no longer necessary or expected under the MSP, the U.S. should concentrate on facilitating a more normal, sound and self-sustaining economic relationship with Italy, in which the emphasis is on increasing cooperation not involving U.S. outlays, improving the Italian atmosphere for private foreign investment, and encouraging Italian use of established international lending institutions.

c. Consultation. In order to encourage continued Italian support for U.S. international policies, the U.S. should consult with Italy on international matters in which the two countries have important national interests.

d. Defense. In fulfillment of its military commitments to Italy within the NATO framework, the U.S. should continue to assist Italy to strengthen its defense capability.

[1 paragraph (4–1/2 lines of source text) not declassified]

f. Center Parties. The United States should also continue to support the Italian democratic parties of the Center (Christian Democrats, Liberals, Republicans and Social Democrats) emphasizing the Christian Democratic Party, which is the bulwark of Italy’s democratic regime and its pro-Western orientation.

g. Socialist autonomy. From the U.S. point of view it is important that the trend toward Nenni Socialist autonomy from the Communists and the Soviet Union should progress substantially further before the Social Democrats enter a reunified party, and that the Social Democratic viewpoint and leadership should have substantially more influence in a reunified party than would appear probable should unification occur in the immediate future. Unification would probably destroy government by the Center and if carried out prematurely would not only weaken Italian democracy and stability but would also make it difficult to achieve a new governmental formula satisfactory to U.S. objectives.

h. Social Democrats. Since the Socialist tradition in Italy is sufficiently strong that unification may come about irrespective of any contrary efforts [less than 1 line of source text not declassified] the U.S. should seek to strengthen, as may be appropriate, the Social Democrats and Saragat’s influence among them, in order to assist them, within the limits of their own judgment of the political situation, to resist premature unification and to win acceptance of their unification terms (clean Nenni Socialist break with the Communists, pro-Western foreign policy, elimination of Communist cadres and acceptance of democratic internal procedures).

i. Socialist unification. During the present stage of Socialist unification negotiations, it is of great importance for the U.S. to exercise the utmost discretion. We should on one hand do nothing publicly or privately to indicate that we favor the admission of the Nenni Socialists as presently oriented into the ranks of the democratic parties, but on the other hand, we should avoid giving the impression that the Nenni Socialists would be unacceptable under absolutely all conditions. We should be careful not to lead European Socialists to think we oppose an increase in democratic Socialist strength.

[1 paragraph (4–1/2 lines of source text) not declassified]

B. Selected U.S. Arrangements with or Pertaining to Italy

3. U.S. Involvements which May Imply Military Security Guarantees.

The North Atlantic Treaty.

4. U.S. Commitments for Funds, Goods, or Services

a. PL 480 Program.

(1) Title I. Six agreements have been signed (May 23, 1955, July 5, 1956, October 30, 1956, January 7, 1957, March 26, 1957, and March 7, 1958,¹ providing for the sale of agricultural surplus commodities for local currency in the aggregate of $152.9 million. Of this about $100.5 million will be loaned to the Italian Government for economic development.

(2) Title II. An agreement was signed May 8, 1958, to provide $6.5 million for supplemental child feeding for a fourth year.

(3) Title III. Authorizations to voluntary agencies for shipments of surplus agricultural food commodities to Italy will continue. After October 1, 1957, United States was committed to meet 100% freight costs on commodities shipped to Italy for this purpose.

b. Commitments implied by the General U.S. Politico-Military Undertaking with Respect to NATO. The FY 1959 Military Assistance Program, presently in the inter-departmental conference stage, has been put at $52.2 million subject to final agreement on amount and resolution of the terms of aid composition in a possible sales-grant package.

c. Export-Import Bank Loans. As of June 30, 1958, undisbursed commitments by the Export-Import Bank to Italy amounted to $16.4 million.

d. Atomic Energy. On March 31, 1958, the Italian Parliament ratified the U.S.-Italian Bilateral Power Agreement.² Under the terms of this agreement the U.S. will exchange technical information and guarantee a supply of enriched uranium fuel for two Italian power reactors plus a limited number of research reactors.

e. Fulbright Program. The Fulbright Program for Italy under PL 584 for FY 1959 is $1 million.

II. Current and Projected Programs and Courses of Action

(Individual action items when extracted from this Plan may be downgraded to the appropriate security classification.)

A. Political

I. Government and Parties.

5. Support all the Center Democratic parties, recognize the primary U.S. interest in the Christian Democratic Party as now oriented as the foundation of democratic government and the pro-Western orientation of Italy. Encourage increased unity of the Christian Democratic Party along the lines of better organizational mechanics and avoidance of factionalism.

• Assigned to: State
• Supporting:USIA
• Target date: Continuing

[1 paragraph (2–1/2 lines of source text) not declassified]

[3 lines of source text not declassified]

7. [less than 1 line of source text not declassified] oppose the entrance of the Nenni Socialist Party, as presently constituted and oriented, into the Italian Government or into the parliamentary majority on which the Government depends.

• Assigned to: State
• Supporting:USIA
• Target date: Continuing

8. Attempt to influence any movement toward Socialist unification in a direction favorable to U.S. interests by strengthening the Social Democratic Party particularly those of its individual leaders who are mostly strongly pro-Western. Discourage the Christian Democratic and other Center parties which might tend to weaken the Social Democrats vis-à-vis the Nenni Socialists or accelerate Socialist unification under terms adverse to U.S. interests.

• Assigned to: State
• Supporting:USIA
• Target date: Continuing

9. Give full evidence of consultation with Italy before taking international decisions in which Italy has an interest, thus helping the Italian Government to resist ultra-nationalist xenophobic pressures.

• Assigned to: State
• Supporting:USIA
• Target date: Continuing

10. Consult closely with Italy in the UN and other international organizations for the purpose of obtaining their support for U.S. policies and objectives.

• Assigned to: State
• Target date: Continuing

II. Labor

11. Continue intensive administration of the various U.S. programs including procurements and U.S. local labor contracts in Italy in such manner as to weaken Communist and fellow-traveler organizations and to strengthen free labor unions, cooperatives and similar organizations in their efforts to combat Communist control of Italian labor.

• Assigned to: State, Defense, ICA
• Supporting:USIA, Labor
• Target date: Continuing

12. Encourage the Italian Government to place follow-on orders and to take other actions to support Italian firms whose working forces as a result of OSP screening policy have come under the control of free unions.

• Assigned to: State
• Target date: Continuing

13. Continue to encourage the Italian Government and private employers to grant preference to the greatest extent possible to non-Communist unions in all matters of labor-management relations, and effectively to enforce and observe in good faith the provisions of labor contracts.

• Assigned to: State
• Supporting: Defense
• Target date: Continuing

14. Attempt to counter and discourage any formal or informal collaboration between Communist and anti-Communist labor unions and similar organizations.

• Assigned to: State
• Supporting:USIA, Labor, Defense
• Target date: Continuing

15. Continue within the realm of present capabilities implementation of the law requiring individual seamen’s visas so as to reduce Communist influence over Italian seamen and assist the development of anti-Communist organizations in this sector.

• Assigned to: State
• Target date: Continuing

16. Similarly an effort should be made to require individual air crewmen’s visas in order to reduce Communist influence over this group exerted through the CGIL.

• Assigned to: State
• Supporting: Defense
• Target date: Continuing

17. Encourage labor leader training programs, with U.S. support, emphasizing direct training aspects.

• Assigned to:ICA, State
• Supporting:USIA
• Target date: Continuing

18. Continue to encourage private American business in Italy to follow labor policies which will assist free labor organizations and weaken Communist organizations.

• Assigned to: State, Commerce, ICA
• Target date: Continuing

19. Continue the MSP bilateral technical exchange program designed to strengthen the free trade unions against Communist influence and the Communist-dominated CGIL.

• Assigned to:ICA
• Supporting: State
• Target date: Through Fiscal 1959

20. Encourage Italian leaders to promote and support further steps in European integration.

• Assigned to: State, USIA
• Target date: Continuing

III. European Unity

21. Provide support for the government by the Center by emphasizing Italy’s role in Western European decisions in political, economic and military fields, through such organizations as the United Nations, North Atlantic Treaty Organization (NATO), Western European Union (WEU), EURATOM, Coal and Steel Community (CSC) and the Common Market.

• Assigned to: State, USIA, ICA, Defense
• Target date: Continuing

22. Encourage Italy to exploit within the EURATOM framework, the possibilities for research and development for peaceful uses of atomic energy. In addition, encourage Italy’s participation in the International Atomic Energy Organization and the nuclear energy activities of the OEEC. Assist Italy in atomic research and power development through nuclear energy agreements.

• Assigned to: State, AEC
• Target date: Continuing

23. Encourage Italy to seek active participation and assistance of other European countries through OEEC and other agencies in efforts to raise the economic level of its less developed areas where Communist influence is strong or in areas where Communism has a large potential. Encourage Italy to bring these questions to the special OEEC bodies such as the special working parties and the European Productivity Agency which can advise or assist Italy in carrying out its objectives in the less developed South.

• Assigned to: State
• Target date: Continuing

24. Encourage Italy to support U.S. efforts to maintain COCOM and CHINCOM strategic trade controls.

• Assigned to: State
• Supporting:USIA
• Target date: Continuing

IV. Italy’s Foreign Relations

25. Continue to encourage Italian maintenance of a steady flow of escapees and refugees from Soviet dominated countries to countries of final asylum, and to ensure Italian cooperation with U.S. asylum policies. While taking no action to encourage escape of Yugoslav nationals, seek to preclude the involuntary repatriation of Yugoslav national political escapees. To these ends, assist Italy with technical advice and, if necessary, supplement Italian and international funds with continued assistance, primarily emphasizing development and maintenance of emigration processing facilities for escapees and refugees, keeping in mind, however, the limitation on assistance for Yugoslav Refugees set forth in NSC 5706/2³ which reflects the limited extent of U.S. interests in the Yugoslav refugees in relation to the basic objection of reducing the total problem of refugees.

• Assigned to: State
• Supporting:ICA
• Target date: Continuing

26. Discourage Italy from recognizing Communist China and East Germany.

• Assigned to: State
• Supporting:USIA
• Target date: Continuing

27. Encourage further reductions of Italo-Yugoslav political and economic tensions.

• Assigned to: State
• Target date: Continuing

28. Continue to encourage the Italian Government to maintain its support in the future of Somalia and to support its interest by contributing to the maximum extent possible toward the economic viability of the Somali nation.

• Assigned to: State
• Supporting:ICA
• Target date: Continuing

B. Military

29. Continue to utilize to the maximum extent resources and facilities available to improve troop-community relations. Continue programs to brief military and Department of Defense civilian personnel and their dependents prior to assignment to Italy. Devote maximum attention to improving knowledge of troops regarding Italian law and customs.

• Assigned to: Defense, State
• Supporting:USIA
• Target date: Continuing

30. Encourage the Italian Government to take full advantage of opportunities made available for members of its armed forces in training installations in the U.S. and Europe. Continue the program of inviting Italian officers to visit continental U.S. installations.

• Assigned to: Defense
• Target date: Continuing

31. Encourage the Italian Government to provide adequate financial support for NATO force goals, maintenance of MAP equipment and NATO infrastructure participation. Make maximum attempt both in Washington and abroad to integrate U.S. military policies affecting Italy, so as to facilitate the most efficient planning and use of Italian military budgets. Within legislative limits continue Military Assistance Program and training assistance.

• Assigned to: Defense
• Supporting: State
• Target date: Continuing

32. Continue analyzing the inadequacies of the Italian defense program with a view to encouraging the Italian Government to put its limited Italian defense budget to the most effective use.

• Assigned to: Defense, State
• Target date: Continuing

33. Continue through the Mutual Weapons Development Program to afford financial support for certain research and development items.

• Assigned to: Defense
• Supporting: State
• Target date: Continuing

C. Economic

I. U.S. Actions

34. Continue as appropriate under approved Title II and Title III PL 480 programs to make available agricultural surplus supplies for regular voluntary agency programs and to meet emergency situations requiring outside aid. (See Section I-C for program details.)

• Assigned to:ICA, USDA
• Supporting: State, USIA
• Target date: Continuing

35. Plan implementation of approved Title II and Title III PL 480 welfare programs in patterns that will help combat Communist influence and encourage Italian Government to carry out constructive popular programs. Support supplemental child feeding program under Title II with a public information program.

• Assigned to:ICA, USDA
• Supporting: State, USIA
• Target date: Continuing

36. Continue participation in Italian trade fairs, in accord with interdepartmental decisions.

• Assigned to: Commerce
• Supporting:USIA, State
• Target date: Continuing

37. Keep under consideration all advisable and feasible steps to assist Italy in alleviating its population pressure.

• Assigned to: State
• Target date: Continuing

38. As appropriate, inform the National Advisory Council that the extension of loans to Italy by the established lending institutions for sound development projects would be advantageous from the standpoint of U.S. security interests.

• Assigned to: State, Treasury
• Target date: Continuing

II. Free Enterprise and Trade

39. Continue to encourage Italian liberalization of trade in Europe and measures for dollar liberalization.

• Assigned to: State, Commerce
• Supporting: Treasury
• Target date: Continuing

40. Encourage the Italian Government to support policies leading toward liberal trade and commercial practices by Common Market countries vis-à-vis other countries of the world. Promote Italian willingness to assist in bringing about a Free Trade Area.

• Assigned to: State, Commerce
• Supporting:USIA
• Target date: Continuing

41. Through the European Productivity Agency (EPA) continue to support the National Productivity Committee as a continuing Italian institution. Support and encourage Italian participation in European Productivity Agency multilateral technical exchange and productivity programs. Encourage Italian self-financing of these programs as well as technical exchange to meet other technical, educational, and productivity problems, and looking ultimately to full meeting of such responsibilities from Italian resources.

• Assigned to:ICA
• Supporting: State
• Target date: Through Fiscal 1959

42. Urge the Italian Government to make positive improvements in the atmosphere for both domestic and foreign private investment in Italy, including more satisfactory petroleum legislation and administrative regulations which interpret liberally laws on investment of foreign capital.

• Assigned to: State
• Supporting:USIA, Commerce
• Target Date: Continuing

III. Foreign Investments

43. Encourage private investment to participate in Italian development and encourage the Italians to use the financial resources of international lending institutions and of various European countries which will probably continue to be available to supplement those of the Italian Government and Italian industry.

• Assigned to: State, Commerce
• Supporting: Treasury, ICA
• Target date: Continuing

44. Encourage as may be possible the Italian business community and conservative political groups to adopt more liberal business, economic, and social policies. Encourage cooperation in this area with other Western European countries, for example in OEEC, EEC and EPA, aimed to help develop a free enterprise economy in Europe.

• Assigned to: State
• Supporting:USIA, Commerce
• Target date: Continuing

E.[D.] Informational and Cultural

45. Continue the Exchange of Persons Program, emphasizing the need for outstanding Italian candidates in the fields of public service, labor, information media, education and cultural life. Seek to arrange visits to the U.S. of key Italian political and cultural figures through sponsorship of U.S. private individuals and organizations.

• Assigned to: State, USIA, Labor
• Target date: Continuing

46. Provide encouragement, advice and any appropriate support for Italian Government information programs designed to draw political advantage from economic reforms and programs currently under way, and from Italian participation in free world councils. Encourage the Italian Government to assume responsibility for publicizing U.S. aid programs.

• Assigned to:USIA
• Supporting: State, ICA
• Target date: Continuing

47. Continue to encourage and support the development of American studies in Italian universities.

• Assigned to: State, USIA
• Target date: Continuing

48. Provide overt but unpublicized support for Italian discussion groups, cultural organizations and community recreation and welfare centers which are designed to give a firmer foundation to Italian democracy.

• Assigned to:USIA
• Supporting:ICA, State
• Target date: Continuing

49. Continue USIA programs to explain and win support for U.S. policies, through information and cultural media, on such themes as “Atoms for Peace”, “U.S. Science and the Geophysical Year”, Open Skies and Disarmament”, and “American Capitalism”.

• Assigned to:USIA
• Supporting: State
• Target date: Continuing

Note: See latest National Intelligence Estimate, NIE 24–58, dated November 4, 1958, entitled “The Political Outlook in Italy”.⁴

0. Source: Department of State, OCB Files: Lot 61 D 385, Italy 1958–60. Secret. An attached Pipeline Analysis is not printed. In a memorandum attached to the source text, dated November 7, Roy M. Melbourne, Acting Executive Officer of the OCB, stated that the Operations Plan for Italy had been updated because of the results of the Italian national elections and superseded the Outline Plan of Operations of May 15, 1957. For an extract of the May 15 plan, see Foreign Relations, 1955–1957, vol. XXVII, pp. 412–415.
1. For texts of these agreements, see 6 UST 1109 (May 23, 1955, agreement), 7 UST 1979 (July 5, 1956, amendment), 7 UST 3219 (October 30, 1956, agreement), 8 UST 199 (January 7, 1957), 8 UST 394 (March 26, 1957, amendment) and 9 UST 277 (March 7, 1958, agreement).
2. For text of this agreement, see 9 UST 369.
3. For text of NSC 5706/2, see vol. XXV, pp. 584–588.
4. See Document 227.