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

233. Memorandum From the Assistant Secretary of State for European Affairs (Merchant) to Secretary of State Dulles⁰

January 20, 1959.

SUBJECT

• Nenni Victory at Italian Socialist Party Congress

The Italian Socialist Party (PSI), headed by Pietro Nenni, concluded on January 18 a four day national congress by adopting a resolution, sponsored by Nenni and his autonomist wing, favoring the development of a party program independent of close collaboration with the Communists. This collaboration was originally characterized by a “unity of action” pact but, more recently, by agreement to consult. The break with the Communists was by no means complete for the Congress agreed to remain allied with the Communists in the numerous local government coalitions in which they participate, in the Communist-dominated labor movement (CGIL), the largest Italian labor union, and in cooperatives.

The Nenni faction gained 58.3% of the votes on the motion to cut ties with the Communists, increasing their seats on the 81 member Central Committee from 29 to 47 while the pro-Communist wing, led by Tullio Vecchietti, dropped from 40 to 27 seats. Radio reports state that Nenni has completely excluded the pro-Communists from the 15-man party directorate.

It will not become clear for some time what effect this Nenni victory will have on the orientation of the Socialist Party. Greater independence from the Communists may enable the Socialists to adopt a more moderate attitude toward Italian domestic and foreign policy, although their emphasis on an independent and neutralist foreign policy line will undoubtedly be maintained. However, in an editorial in the Socialist organ Avanti of January 4, Nenni adopted a more moderate tone toward the China, Middle East, and Berlin problems, supporting Red China’s admission to the UN without calling for U.S. withdrawal from Formosa; and noting there was room in the Middle East for all, including the Italians, who respected the sovereignty and integrity of the Arab countries. (He noted that Fanfani’s trip to Cairo was a positive step.) Nenni emphasized that the problem of Berlin could not be separated from that of Germany and European Security and called for negotiations conducted in a spirit of conciliation as suggested by the German Social Democrats.

The Socialist decision to follow an autonomist policy may have the immediate effect of contributing to the downfall of the Fanfani Government by undermining its coalition partner, the Saragat Social Democrats (PSDI). Elements of the PSDI left wing, led by Matteo Matteotti, had privately indicated their desire to accomplish Socialist unification promptly upon a Nenni victory and, if opposed by Saragat, to join the PSI, taking some 3 or 4 parliamentary deputies along.¹ The loss of the latter would eliminate the slim working (though not actual) majority of the Fanfani Government and bring it down. The ensuing result would probably be an ineffectual Christian Democratic minority government lasting at least until their party congress on April 15. The long-range effect of PSI “autonomy” will be less dramatic since Nenni, despite his victory, will have to revamp the internal party organization now in the control of pro-Communist functionaries. He will also be further restricted by the fact of Socialist participation in the Communist-controlled CGIL and cooperatives. Nevertheless, the entry of a more flexible Socialist party on the political stage will probably have an unsettling effect on the political alignment, since this initial step toward a more democratic posture coincides with the trend toward the left developing in the Italian electorate. The long-term implications of a drift in Italy toward Socialist orientation would not necessarily be favorable to the maintenance of Italy’s position in the Western community.²

0. Source: Department of State, Central Files, 765.00/1–2059. Confidential. Drafted by Frank E. Maestrone.
1. On January 24, Ezio Vigorelli, the Social Democratic Minister of Labor, resigned, precipitating the fall of the Fanfani Cabinet. On February 8, Vigorelli, Matteotti, and three other Deputies together with about 400 Social Democratic leaders seceded from the PSDI to form the Movimento Unitario di Iniziativa Socialista. This group merged with the Italian Socialist Party (PSI) on May 18.

2. In circular telegram 894, January 23, the Department of State commented:

   “Victory Nenni’s autonomists at PSI Congress Naples raises possibility PSI might be accepted membership Socialist International. Such action would weaken Saragat’s opposition to merger PSDI with PSI. It would also give PSI prestige and increased contact with powerful West European social democratic parties. It would further contribute to factors threatening life of Fanfani coalition government with PSDI. FYI Important US negots with Italy now nearing conclusion could be adversely affected.” (Department of State, Central Files, 765.00/1–2359)