740.00119 Control (Italy)/11–546
Memorandum by the Acting Secretary of State to President Truman
Subject: Transfer to Italy of Non-Troop-Pay Dollars
As you are aware, you approved April 26, 1946 a recommendation of the National Advisory Council to the effect that the dollar equivalent of lira expenditures by our armed forces in Italy for the procurement of supplies, services, and facilities in that country be made available to the Italian Government.
In a letter to the Secretary of the Treasury dated May 10, 1946 the Comptroller General indicated he had no objection to the proposal. On July 25, 1946 the Secretary of the Treasury and the Under Secretary of State for Economic Affairs discussed this question with members of the Sub-Committee of the House Committee on Appropriations who indicated their approval of the proposal on the understanding [Page 942] that announcement of this action to the Italian Government be left to the discretion of the Secretary of State.
On October 12, 1946 in a letter to Prime Minister de Gasperi the Secretary of State informed the Italian Government that the United States Government had decided to make available to Italy the dollar equivalent of lira expenditures made up to now and hereafter by American armed forces in Italy for the procurement of supplies, services, and facilities in that country.
In order that the funds may be turned over promptly to the Italian Government, it is necessary that the War and Navy Departments certify the amounts in question to the Secretary of the Treasury. It is believed by the War Department that this action requires a specific directive from you to the Secretaries of War and Navy.
In view of the urgent need of the Italian Government for dollar funds and of the promise of the Secretary of State that $50 million would be made available immediately, it is requested that you send to the Secretaries of War and Navy letters along the lines of the attached drafts.91 Copies of these letters should be sent to the Secretary of the Treasury for his information.92
- Not printed.↩
In the Department’s telegram 2072 of November 25, 1946, the Embassy in Rome was advised that the United States Treasury Department had handed the Italian Embassy a suggested draft of a letter, to be sent by the Italian Government to the Secretary of the Treasury, in connection with arrangements for the transfer of non-troop-pay dollars (865.51/11–2546).
In despatch 4389 of November 27, the Embassy in Rome reported that the Italian Government had designated Cesare Sacerdoti, Chief of the Italian Technical Delegation in Washington, to receive, endorse, and collect all checks drawn on the Treasurer of the United States in favor of the Italian Government (865.5151/11–2746).
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