DEPARTMENT OF STATE Memorandum of Conversation
Date: July 18, 1949
SUBJECT: General problems concerning Italy.
PARTICIPANTS: Secretary of State Sr. Tarchiani, Ambassador of Italian Embassy Mr. Unger, SWE
COPIES TO: EUR CP SWE E AF AMEMBASSY, Rome NEA USPOLAD, Trieste U/FAA AMEMBASSY, Belgrade ILS AMEMBASSY, Paris SE AMEMBASSY, London WE USUN
The Italian Ambassador mentioned that he was returning to Rome and would be talking with de Gasperi, Sforza and others there and wished to carry back an authoritative picture of the views of the United States Government on certain questions of interest to Italy. He broached first the question of the disposition of the former Italian Colonies, saying that his Government hoped that before the meeting of the General Assembly in the fall there could be some measure of agreement among the countries principally concerned so that the unsatisfactory situation in which we found ourselves at the last meeting of the General Assembly would not be repeated. The Secretary replied that he hoped that we may be able to give the Ambassador some information on this subject before his departure. He added that the United States position is still under discussion and that it was hoped that in the next few days a position could be presented to the President for his approval. Sr. Tarchiani said that he would hope for some word on the Colonies question when he meets with Mr. Rusk before his departure.
The Secretary expressed his interest in Italy's desire to take part in the economic development of Africa and indicated the United States Government's readiness to take into consideration whatever proposals on this subject the Italian Government may have. Sr. Tarchiani recalled an earlier conversation between Mr. Sforza and Mr. Bevin which was concerned with this subject and he emphasized Italy's interest in contributing technicians and manpower to the development of hydro-electric power, roads, agriculture, etc. in those undeveloped regions of Africa which hold most promise for substantial expansion of production. Principal among these are those under British control, he added. The Secretary mention a number of conversations that he had had with the Italian Foreign Minister last spring and some letters from Count Sforza in which the latter had raised this question of Italian participation in African development. The Secretary inquired whether it was the objective of seeking an outlet for Italy's surplus manpower which Count Sforza had primarily in mind. Sr. Tarchiani replied in the affirmative and he also mentioned the use of Italian technicians in this connection. He then called attention to Angola, which he characterized as offering perhaps the best possibilities of development in all of Arica, and expressed doubt as to the ability of the Portuguese to carry through such development. Italy, without in any way interfering with Portuguese administration or sovereignty, was anxious to take part in such development.
The Ambassador then referred to an Italian request for funds from ECA to encourage the expansion of Italian emigration. These funds are intended to help finance rural settlement in Canada and the preparation of surveys and establishment of pilot projects in Latin America and Africa. Sr. Tarchiani mentioned that Italian emigration to Latin America had fallen below expectations because of unfavorable economic conditions in the receiving countries and because those countries were unable to make any contribution to the financing which is necessary for the settlement of immigrants. ECA was hesitant to approve a project of this sort which would represent an innovation in ECA practices, but the Ambassador felt that Mr. Hoffman would probably agree to it, barring, of course, severe Congressional cuts in the ECA appropriation. When he asked for our support on this project the Secretary indicted that we would discuss the matter with ECA.
The Ambassador thanked the Secretary for the note which the United States had recently delivered to the Yugoslav Government censuring that Government's action in Zone B of the Free Territory of Trieste. He added that the Italian Government was aware of our general views on Yugoslavia and recalled a conversation between Secretary and Mr. Sforza last spring when Sforza said that Italy would do all she could on the economic side to help Yugoslavia. Italy is fully aware of the possible consequences of Tito's collapse and naturally does not wish this to occur any more than the United States. Because of incensed Italian public opinion Italy has had to protest Yugoslavia's action and suspend the trade agreement negotiations but this latter would be regarded as a temporary measure only. The Secretary appreciated these views and expressed the hope that the incident precipitated by the Yugoslav action would pass as quickly as possible and that no moves to keep it alive, such as raising the question at Security Council, would be taken. He agreed that Tito must be slapped down when he takes such unfortunate actions but that it would be well now to let the matter be forgotten. The ambassador specifically agreed to the undesirability of taking the matter to the Security Council.
Dr. Tarchiani asked whether a meeting of the Foreign Ministers was envisaged in connection with the setting up of the North Atlantic Pact machinery. The Secretary replied that he had not been thinking in terms of an early meeting of the Foreign Ministers but had rather expected, that upon ratification of the Pact, working groups would meet to formulate the machinery for the operation of the Pact. When these groups had matured their proposals, these proposals might then be submitted to a meeting of the Foreign Ministers. With reference to the question of representation on the North Atlantic Pact Council the Secretary said that the United States was still considering that officials might act as representatives on the Council for most of its sessions, recognizing that the Foreign Ministers much of the time would not be able to attend because of their already overloaded schedules. He suggested that Mr. Achilles might have further views on this subject. The Ambassador indicated that he would tell Count Sforza that the United States Government will probably wish to get working parties under way to formulate proposals for Pact machinery as soon as ratification has been completed. He added that the Italian Parliament is now considering the Pact and that in spite of the highly vocal opposition on the part of the Communists and Left Wing Socialists passage by the Parliament is a virtual certainty.
As the last item of business, Sr. Tarchiani referred to the present apparent impasse between Italian and American Delegations, now negotiating for a trade agreement in Annecy. He professed to be ignorant of the details of the situation but felt that there was probably fault on both sides and that if both were urged toward a more conciliatory approach a solution to this problem might be achieved. The Secretary also confessed to incomplete knowledge on the matter but said that it was his impression that the Italians might be holding back with certain better offers in order to preserve their bargaining position, thus preventing the negotiations from making very much progress. He felt that both delegations could get down to business if the Italians would come forward with substantial offers, perhaps their maximum, as soon as possible. He extended give and take which the Italian Delegation apparently envisages was not possible in the circumstances. He asked Mr. Unger if this was a fair statement of the situation and the latter confirmed the Secretary's statement adding that it was felt that an offer by the Italians which covered all the items in the United States request list and which made the maximum concessions would make it possible to resume active negotiation. The Ambassador said he would ask his Government to send instructions along these lines to the Italian Delegation at Annecy. He hoped at the same time that the United States would instruct its Delegation to take a more conciliatory approach in order to facilitate the resumption of fruitful negotiations at an early date and the Secretary agreed to do so.
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