232. Telegram From the Embassy in Italy to the Department of State1

170. For Under Secretary from Christopher. Wool Textiles. Separate meetings held Monday2 evening with Medici, Minister of Industry and Commerce, and with Mondello, Deputy Director Econ Affairs, Foreign Office.

Points made by Christopher were (1) US hoping for GOI agreement to attend conference this fall without commitment as to multilateral agreement or any other specific solution; (2) international conference closely related to KR in that it will enhance our ability to resist pressures for long exceptions list; (3) impact of LDC wool textile trade already being felt by US and now is time to take steps to provide for orderly growth of such trade; (4) political and econ pressures building up in US for unilateral action and same will be difficult to resist if trading partners unwilling even to attend conference. Love and Ruttenberg supported presentation.

Medici repeated line similar to Mattarella’s and apparently latter had reported to Medici on Mission’s earlier meeting. This later confirmed by Mondello who had received telephone calls from both Mattarella and Ferlesch after Mission’s visit.

Medici however gave first positive sign of being willing to cooperate re USG proposal on conference. On probing by Christopher, Medici said:

1.
New government will be formed within next few days.
2.
Decision to participate would need to be official GOI decision which GOI cannot now take.
3.
If USG wishes to avoid unilateral action and invites other countries to participate in examining wool textile problem in framework of KR, GOI will consider problem.
4.
But this is sensitive matter and conference should be organized in such manner and at such time as would prevent failure of conference.
5.
Therefore, USG would be advised to wait bit longer. Conference could be better promoted in October. At present there are too many people against conference.

Mondello reported that Mattarella is concerned that he will not continue as Minister of Foreign Trade in new Cabinet. Mondello discounts Mattarella’s concern and indicated that GOI reply should be forthcoming [Page 623] within week if Mattarella continues. Mondello minimized Medici’s role in GOI policy determination re USG proposal. Mondello felt that Minister of Foreign Trade will largely make decision. He suggested that Department speak with Ortona who will be in Washington until end of week and that reply to USG proposal will be held up pending Ortona’s return. Mondello felt that Ortona might influence GOI decision. Christopher suggests that Under Secretary Ball or Assistant Secretary Johnson may wish speak with Ortona after briefing by [garble].

Mission was accompanied on all visits by Econ Counselor who hosted luncheon for Mission and advisers Monday. Mission briefed Ambassador on meetings after his return to Rome late Monday. Industry and labor advisers were briefed on all Rome conversations by Mission.

Mission returning to US today.

Reinhardt
  1. Source: Department of State, Central Files, INCO–WOOL 4. Limited Official Use; Priority. Repeated to Brussels for USEC, Geneva, London, and Tokyo.
  2. July 20.