875.50/12–2145: Telegram

The Representative in Albania (Jacobs) to the Secretary of State

252. According to sources believed to be reliable Major General Mehmet Shehu of Albanian General Staff who recently returned from Moscow has reported to Cabinet substantially as follows:

(1)
Moscow states Albania will receive no reparations from Italy and advises that regime confiscate all private Italian property in Albania;
(2)
Moscow expects regime to allow Albania’s mineral and oil resources and harbors to be developed by the Soviets.

[Page 80]

Reference point 1. Only private Italian property in Albania of any consequence belongs to few firms rendering services in engineering and technical lines for which Albanians have no substitute. Their activities are already supervised by Commissars so that confiscation would merely formalize action already taken unless Italian owners and workers are deported. Mytel 238, December 15, 6 p.m., 1945.81

Reference point 2. Shehu’s message may be basis of economic agreement sought by Soviets under terms of which Albania’s resources will be developed with Soviet aid to pay for Soviet arms grain and other articles yet to be supplied. Mytel 246, December 20, 10 p.m.82

Jacobs
  1. Not printed; it recommended that in adjusting Albanian reparations claims against Italy, consideration be given to the fact that of the estimated six billion lira (equivalent to $300 million) in Italian non-military expenditures in Albania during the occupation, much was lost during the occupation, especially from Allied bombings and German reprisals and demolitions, and much of what remained could not be utilized due to a lack of funds and parts (865.51/12–1545).
  2. Not printed; it reported that several Soviet motorships had arrived in Albania where they discharged cargoes of wheat and maize and possibly Soviet artillery, rifles and ammunition and took back copper ingots, copper ore and some hides (661.7531/12–2045).