740.00119 EW/7–1146: Telegram

The Chargé in Italy (Key) to the Acting Secretary of State

secret

3179. In a conversation with Prime Minister de Gasperi today he reiterated his deep concern over the agreements reached at CFM meetings and made following points:

(1)
With respect to Venezia Giulia (see my 3178, July 11)33 and Trieste which overshadowed all other questions in the minds of the Italian people he expressed the opinion that the agreement was unacceptable and that any peace treaty containing this feature could not be signed except possibly by a Communist government.
(2)
If a peace treaty containing the present CFM agreements were imposed on Italy it would seal the fate of the republic, already none too robust, as the latter could not possibly overcome such a handicap.
(3)
Such a treaty would give rise to a wave of nationalism which would inevitably engulf the moderates and supplant them with extremists.
(4)
The US is being blamed by the majority of Italians for what has occurred at Paris because it had been expected and hoped, in view of the assurances which were given and because of the strong stand taken by the US in support of its principles at the previous CFM meetings, that the US would stand firm. Italy had not expected any sympathy or generosity from the Soviets and very little from France or, for that matter, from Great Britain but it had counted on the US. The fact that the US had, to a great extent, capitulated to Soviet intransigence had been a shock and is being regarded as a sign of weakness.
(5)
Already he is being reproached for having placed his faith in American assurances and strength. His critics are insisting that his policy in this respect has proved disastrous for Italy and that instead of banking on the implementation by the US of its avowed principles and policies he should have sought a closer understanding with Russia. (See mytel 3071, July 2). He frankly stated, although without bitterness, that he felt he had been let down by the US.
(6)
Finally he expressed the hope, however faint it might be, that the peace conference would result in a modification of the agreements reached at the CFM meetings and more especially that of the Venezia Giulia and Trieste question.

Sent Dept 3179, repeated Paris for USdel 422, Moscow 145.

Key
  1. Not printed; in this telegram the Chargé reported on a conversation with Prime Minister De Gasperi regarding the latter’s efforts to form a cabinet. Key added the following regarding the Prime Minister’s views on the negotiations in the Council of Foreign Ministers:

    “De Gasperi expressed amazement at US concurrence at Paris in Soviet demands for $100,000,000 reparations. He considers that plan to pay Soviet reparations in part out of current Italian production with Russia furnishing raw materials and Italy labor, is shortsighted policy for Western Powers since it will provide important entering wedge for Soviets into Italian industry and foreign trade. He anticipates that when reparations bill is paid up through Italian labor contribution, pressure from workers and firms to continue arrangement with USSR on commercial basis cannot be resisted by any Italian Govt. Prime Minister pointed out further that any such arrangement with USSR will entail Soviet Economic Mission here and Italian Economic Mission in USSR during life of agreement.” (740.00119 EW/7–1146)