765.5 MSP/12–2453: Telegram

No. 761
The Ambassador in Italy (Luce) to the Department of State

top secret

1979. Eyes only for the Secretary. Re your 2126, December 23.1 Arriving New York late December 27. Very difficult make Washington before morning January 2. Do you wish to see me then?

Meanwhile, in answer MDAP question in your 2126, it is true that I have a growing apprehension concerning the situation in Italy which, among other aspects, has an important bearing upon MDAP. Unless the upward trend to communism in Italy and chronic Italian feet-dragging on cooperation with our over-all objectives in Western Europe, which increased following the elections last June, are stopped and reversed within coming year the wisdom of continuing MDAP or any other kind of aid in subsequent year will be open to serious doubt.

But by no means do I feel that the present situation has reached this point. There is, however, the need at all US levels to become fully conscious of the growing danger in order we ourselves may take effective steps to combat the situation and assist our Italian friends in struggle. To accomplish what needs to be done will require a new approach in our dealing with the Italian Government in all spheres particularly those relating to MDAP and other aid. Some suggestions along those lines are, as noted by you, set forth in my 1818 and 1876.2 Aside from our strictly US approach I feel there should be parallel action by NATO; hence my approach to [Page 1648] General Gruenther to alert him of the possible danger to his SHAPE Forces if communism continues on the upsurge.3

While we are assessing the whole situation and devising ways and means, I see no need to discontinue end item shipments. We can however use off-shore procurement, and other forms of aid as means of exhorting the Italian Government to take necessary steps to combat communism. If that action, having been taken, fails to stop and reverse current trends which the months ahead will tell, then we must indeed reconsider our whole policy toward Italy.4

Luce
  1. Supra.
  2. See footnote 3, supra.
  3. For text of Luce’s letter, see Document 758.
  4. In replying to Luce in telegram 2139, Dec. 24, Dulles wrote that Jan. 2 was all right for a meeting unless he would have to leave for Berlin before then. He stated that Luce’s cable had clarified doubts in his own mind concerning her views on some matters and that he was generally sympathetic to her point of view. (123 Luce, Clare Boothe) In a briefing memorandum of Dec. 31 for Dulles preparatory to the meeting with Luce, Bonbright noted that EUR believed that the MDAP program should not be included in the bargaining package, since “this would have the most profound repercussioins on our whole European security structure and more particularly the defense of Italy.” (765.00/12–3153)