500.A15a3/1432

The Italian Ambassador (De Martino) to the Assistant Secretary of State (Castle)

My Dear Mr. Castle: Following to our conversation of this morning,85 I take pleasure in sending you herewith the substance of a cable I received from Borne, concerning some modifications that have been asked of the Italian Government, on French suggestion, just before the publication of the Naval Agreement: and the main objections of my Government to them.

You told me this morning, talking in a quite personal way, that, in fact, you could not see the weight of the objection No. 2 on the part of my Government, concerning the laying down of destroyers. You based your opinion on the fact that the construction of destroyers would necessitate a period of about nine months. And you recalled that, during the war, destroyers had been built in the United States in that time. However, I am informed by our Naval Attaché that in Italy the construction of destroyers requires a period of time substantially longer than nine months. And my attention has also been called to the fact that even in this Country many of the destroyers hastily built in war time have had to be scrapped before they were over age. This circumstance would indicate that the period quoted above is normally too short for the construction of destroyers.

I am giving you this information also in a personal way.

Believe me [etc.]

De Martino
[Page 378]
[Enclosure]

Memorandum by the Italian Embassy

The Ambassador is informed that the text of the naval accord published yesterday March 11 in Italy is the one accepted by Italy at the conclusion of the negotiations made in Home, with some modifications of form suggested later by the British Government. However, in these last days the British Government has submitted to the Italian Government some amendments desired by the French Government as follows:87

1)
Insertion of the words “subject to the provisions mentioned in paragraph one (b)” in the provision relative to the faculty for Italy and France to scrap old cruisers with guns over 155 m/m instead of small cruisers or destroyers when replacing units of this last category.
2)
Modification of the second sentence of paragraph B (b) to read “Italy and France do not intend starting to replace before December 31, 1936 etc.” instead of “Italy and France do not intend replacing before etc.”
3)
Adding to the end of paragraph B (d) the words “and that be not in conflict with the provisions of the present treaty.”

It has been pointed out to the British Government that the above mentioned amendments are not merely of form, but do alter the substance of the accord bearing as a consequence:

1)
to prevent Italy from availing herself of the faculty to scrap old cruisers instead of light cruisers or destroyers before completion of line vessels;
2)
to prevent Italy from replacing* in 1935–36 the destroyers which will reach the 16 year age limit in 1937–38: which constitutes a derogation at the exclusive prejudice of Italy of the faculty derived from Art. 19 of the London Treaty.
3)
to raise a doubt as to the faculty for Italy to possibly avail herself against a third party of the escalator clause as per Art. 21 of the London Treaty.

For the above mentioned reasons the Italian Government has notified London that it could not accept the amendments suggested and that naturally it could not consider them as valid even though they be included in the text published by other powers.

  1. Memorandum of conversation not printed.
  2. For text of the accord, see p. 380.
  3. word subject to correction. [Footnote in the original.]