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

223. Memorandum of Conversation⁰

July 30, 1958, 3 p.m.

SUBJECT

• San Marino

[Here follows the same list of participants as Document 218.]

Prime Minister Fanfani said that he desired to take this opportunity to discuss with the Secretary financial assistance to San Marino, which he described as a very small but friendly country.¹ A few days before he left Rome he had received a letter from the Secretary of State for Foreign Affairs of San Marino, asking him to raise this question in Washington. The San Marino Government, according to the letter, considered that it had received a promise of economic assistance through diplomatic channels in Rome. As there had been no decision up to the present time regarding such aid from the United States Government, the San Marino Government hoped that Mr. Fanfani would be willing to mention this matter to the Secretary. Mr. Fanfani said that the total sum was modest but was of great importance to San Marino. [2–1/2 lines of source text not declassified]

Under Secretary Dillon [1–1/2 lines of source text not declassified] said that we wish to help San Marino in anticipation of the next elections. We have received from our Embassy in Rome a description of a joint program for economic help to the small country, and the United States has decided to extend assistance on a one-time basis. While details may have dragged on a little, he was glad to say that we are now prepared to move ahead. On the understanding that assistance to San Marino will be a joint Italian-U.S. project, the United States has decided to make available the lire equivalent of $850,000; we understand that Italy will furnish a similar amount. Mr. Dillon said that we consider this amount to be entirely adequate.

The Prime Minister said that he was gratified to learn that the United States would extend this assistance to San Marino, to which the Italians have already furnished money and encouragement in their determined stand against Communist domination.

0. Source: Department of State, Central Files, 865.0077/7–3058. Secret. Drafted by Service and McBride. See also Documents 218–222 and 224.
1. San Marino, a land-locked independent city state within Italy, had been governed by a Communist-Socialist administration from 1945 to 1957. On September 17, 1957, the defection of a Socialist gave the opposition a one vote majority in the Grand Council of San Marino. The Communist and Socialist members of the Council resigned on September 29 and the Captains General called new elections. The majority coalition refused to recognize the legality of these actions and established a “provisional government” in the neighboring city of Ravenna. The Italian Government recognized the provisional government and surrounded the city state with police and armed forces. After negotiations between the two San Marinese factions, a new anti-Communist government took power on October 14. Documentation on San Marino is ibid., Italian Desk Files: Lot 67 D 319.