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

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

January 28, 1959.

SUBJECT

• Fall of Fanfani Government and IRBM Negotiations with Italy

I refer to your conversation with Secretary McElroy on this subject (Tab A).¹

Fanfani, who submitted the resignation of his Government on January 26, has been asked by President Gronchi to stay on in a caretaker status while efforts are made to form a new government. Two days prior to his resignation an Italian Foreign Office official commented to a member of our Embassy that it was not likely that a caretaker government would feel that it had authority to proceed with the IRBM agreement since the agreement is of such a weighty nature that only a newly-constituted government would authorize signature. (Tab B.)² The Embassy recognizes that there will be some delay but has suggested that the Department proceed with Circular 175 action³ in order that we can be in a positions to move quickly if a situation develops which makes signature possible (Tab C).⁴ This is being done. Moreover, we still need confirmation of Italian agreement to our proposals for dealing with Italian IRBM expenditures in the event they should exceed $8.8 million annually.

The Italian internal political situation has become exceedingly confused by Nenni’s superficial break with the Communists, indications of possible defections of left-wing members of Saragat’s PSDI, President Gronchi’s maneuvers and continuing DC right-wing dissatisfaction with Fanfani. There are indeed signs which point to an eventual fundamental realignment of Italian political forces. Under these circumstances, we cannot be certain that a newly-constituted government (either a single party CD government or a tripartite government including the CD, the PSDI and the Republicans) would feel itself strong enough to go through with the IRBM agreement. We shall watch developments closely with a view to moving ahead quickly with signature since we would hope any new government would be prepared to take up where the last government left off. However, I am sure that you will agree that we should avoid creating a situation in which our apparent pressure for the signature of this agreement could be used as a pretext to overthrow a newly-constituted Italian Government.⁵

0. Source: Department of State, Central Files, 765.5612/1–2589. Secret. Drafted by Cameron.

1. A memorandum for the record of a telephone conversation at 12:51 p.m., prepared by David E. Boster, January 27, reads:

   “In a conversation with the Secretary today, Secretary McElroy referred to Fanfani’s resignation and asked if we could get the IRBM agreements signed, pointing out that they have been ready for a couple of weeks. Secretary McElroy said that the Italian deployment would be off indefinitely if we had to start all over again with a new government. He said he regretted that more positive action had not been taken, since we knew the government had been shaky, and he still hoped that it would be possible to have the agreement signed.”

   “The Secretary said he would look into it but was dubious in view of the highly charged political aspect of the problem. He said that we would try to push it through if it could be done.”

   At 6:07 p.m. that day, Dulles telephoned McElroy:

   “The Sec said he spoke about this Italian thing and our people seem to think the probability is this will go through though probably not quickly on the IRBM’s. However they are not giving up hope or efforts.” (Both in Eisenhower Library, Dulles Papers, General Telephone Conversations)

2. Telegram 2163, from Rome, January 23, reported on initial press coverage of the announcement that IRBM missiles would be placed in Italy and on the Italian Foreign Office’s views regarding the ability of a caretaker government to finalize an agreement on the missiles. (Department of State, Central Files, 711.65365/1–2359)
3. Dated December 13, 1955, Circular 175 outlined plans for coordination within the Department of State for the review of proposed treaties and executive agreements to ensure they complied with existing U.S. laws and international agreements.
4. Telegram 2178 from Rome, January 26, requested initiation of Circular 175 action. (Department of State, Central Files, 711.56365/1–2659)
5. Italy and the United States concluded an agreement for the deployment of two squadrons of Jupiter IRBM missiles on March 26. The IRBMs were transferred to Italian ownership under the Mutual Security Program, [text not declassified] Command of the missile squadrons was placed in an Italian headquarters responsible to SACEUR. Documentation on the agreement is ibid., Italian Desk Files: Lot 71 D 55.