Office of the Historian

765.00/3–454

No. 766
Memorandum by the Acting Secretary of State to the President1

secret
Washington, March 9, 1954.
  • Subject: Italian Political Scene

I have your memorandum of March 4, 1954,2 reporting the observations of a visitor who has just returned from Europe and requesting a summation of recent changes in the Italian scene as it affects our policies and interests.

While the Italian situation remains precarious, recent developments have been hopeful rather than otherwise.

1.
A center coalition government including the Social Democrats has been formed by the Christian Democrats and is expected to win parliamentary confirmation. This marks a set-back to the Communists’ popular-front policy, a return to unity of all center forces, and abandonment by the Social Democrats of their dangerous flirtation with left-wing socialists dominated by the Communists. It also marks the end of the phoney truce under the Pella Ministry between the center and the extreme left which was cause for grave concern.
2.
The government has presented an energetic constructive program (housing, social security reform, further tax reform, public works) which may reduce unemployment somewhat and help stem the loss of voter support to the left.
3.
The government seems resolved to press for ratification of EDC and for final approval of the United States-Italian agreement on NATO facilities for United States use in Italy. It no longer links these questions to a satisfactory solution of Trieste.
4.
The principal anti-Communist trade union has reasserted its opposition to unity of action with the Communist union and is supporting the present government. This also is a blow to the popular front policy.
5.
The government and press show a new awareness of the Communist internal threat, and the Berlin conference disillusioned many on the Soviet “peace” campaign.
6.
Secret U.S.–U.K. negotiations with the Yugoslavs on Trieste have made progress and have reached the point where specific territorial solutions are being discussed.3 If we stand firm there is hope that we may achieve either a compromise settlement the Italians could accept or the equivalent of implementation of our October 8 decision to transfer Zone A to Italy. Either development would strengthen the Italian Center Government.
[Page 1653]

The extent to which notable improvement in the political situation may be achieved depends principally on: (a) whether the new government, which has a narrow parliamentary majority, can survive and gain popular approval; or, if not, (b) whether new elections would bring increased strength to the Christian Democratic and other center parties.

Both of these eventualities would be substantially promoted by a Trieste settlement to which the government, and in particular the Christian Democratic Party, could point to as an achievement.

Of course Italy’s basic problems such as over-population and poverty of resources will remain to plague present and future Italian governments. Nevertheless the situation looks better at the moment than it has for some months.

Walter B. Smith
  1. Drafted by William E. Knight and cleared in draft by Jones.↩
  2. Supra.↩
  3. Documentation on these negotiations is scheduled for publication in volume viii.↩