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

263. Telegram From the Under Secretary of State for Political Affairs (Murphy) to the Department of State⁰

Ankara, December 6, 1959, 5:36 p.m.

Murto 5. Rome eyes only for Ambassador. At President’s meeting with Segni and Pella morning December 5, Italians raised following subjects in addition to aid to underdeveloped countries (Murto 2).¹

1. Military aid. Italians referred to discussion with Gates in Washington² and restated in general terms Italy’s need for continued assistance in meeting both MC-70 requirements and requirements of balance of their forces. President referred to burden U.S. was carrying and tremendous investment in research and development, but gave assurance of friendly cooperation regarding Italy’s needs in light of our world-wide obligations.

2. European unification. Pella referred to recent discussions at Strasbourg, Brussels and London³ and said that Italians had discussed with British question of political relationships among Six growing from decision at Brussels for Foreign Ministers to meet every three months, with first meeting in Rome on January 25. He said group would not make firm decisions and meetings would not prejudice consultation process in NATO or WEU. Whenever in consultations between EEC Foreign Ministers, questions affecting U.K. arose, latter would be brought in within framework of WEU. Italians felt that, as result of their recent discussions in London, previous British reservations were now entirely removed. Objective and spirit of Italian position in political consultation was to move toward European unification to maximum extent possible. President said he was delighted to hear of this progress and noted extreme interest of U.S. and of himself personally in movement toward European unification.

3. Dollar liberalization. Segni said Cabinet had decided few days ago on liberalization of additional imports from dollar area, bringing total to 92 or 93 percent of their dollar imports. Italians believed this would mean that Italy was European country with highest percentage of dollar liberalization. President expressed satisfaction and emphasized importance we attach to this question. Pella said also that Italian monetary authorities had decided to assist in our dollar problem to modest extent by anticipating certain payments on dollar indebtedness, such as first slice of Morgan-Stanley loan. Amount involved about $10 million. Other similar action being contemplated and we would be kept informed. Parallel to this operation, Pella asked that use of DLF loans be more flexible so that Italy could participate in furnishing requirements of recipient countries such as Greece. President noted our new policy not entirely rigid but one of “primary emphasis” on dollar financing of US goods and services. President suggested Italians discuss whole subject with Secretary Anderson during Paris NATO meeting.⁴

4. Alto Adige. Segni stated with great feeling Italian concern at what they believed to be basic shift in Austrian policy.⁵ He said Kreisky had said in response to parliamentary question that if legal means of resolving differences insufficient, Austria “would have recourse to other methods.” Statement later denied but Italians believed it had been made and that this meant Austrian Government itself had responsibility for terroristic actions which had been taking place in Alto Adige. Segni restated Italian position and at President’s request Murphy summarized U.S. position.⁶

5. Algeria. Segni mentioned briefly and said Italian objective was to encourage De Gaulle policy of “détente” and hoped it would bring about settlement.⁷ President referred to his hope that De Gaulle would act with wisdom in effort to preserve peace and noted his approval of proposals De Gaulle had made, with reservation that further French action would have to be examined step by step without giving advance blank check, so to speak, in relation to support of further French policy.

Murphy

0. Source: Department of State, Central Files, 800.0000/12–659. Confidential. Repeated to Rome.
1. Document 262.
2. Segni met with Gates on October 1 during his visit to the United States. No record of this meeting has been found.
3. See footnote 4, Document 262.
4. The NATO Ministerial Meeting December 15–17.
5. See footnote 2, Document 239.
6. The United States regarded the Alto Adige as an integral part of Italy and favored settlement of Italo-Austrian disputes through bilateral discussions. It opposed a U.N. General Assembly debate on the issue. (Position Paper: Upper Adige-South Tyrol Problem, September 26; Department of State, Conference Files: Lot 54 D 540, CF 1491.
7. On November 10 and 20, de Gaulle reiterated his offer of self-determination following a cease-fire in Algeria.