Foreign Relations of the United States, 1952–1954, Western Europe and Canada, Volume VI, Part 2

765.5 MSP/5–1854

No. 778
The Director of the Foreign Operations Administration (Stassen) to the Secretary of State

top secret

Washington, May 18, 1954.

Dear Mr. Secretary: Responding to your letter of May 14th¹ regarding the Italian program, may I make these suggestions.

It is my view that if the Italian Government takes effective measures against communism within Italy in harmony with United States policy, and if these measures include some expanded internal consumption, particularly in the south of Italy, the United States should be prepared to grant additional economic aid in the form of surplus agricultural commodities, particularly cotton.

Italy is a large importer of cotton and does have the foreign exchange with which to purchase her normal needs. We have a very large supply of cotton and could easily meet an expanded requirement out of an agricultural surplus program. Something of a magnitude of $15 or $20 million might be involved per year.

Italy produces substantially her entire food requirements, and exports fruits and special agricultural products. If a large expansion of consumption in the south of Italy were undertaken, however, additional imports of wheat and fats from United States stocks could be used.

It would be my view that another United States survey mission to Italy would not be wise and might be misinterpreted. On the other hand, we have endeavored to stimulate an interest by the major European countries in Italian development, particularly in the south. In the OEEC experts’ discussions and through Italian Minister Vanoni’s presentation to the OEEC sessions, some of this interest was demonstrated. Thus, it would be constructive if Italy would receive an OEEC development technical mission and if OEEC would send such a mission. The United States could have a strong member on such a mission. Switzerland, Germany, The Netherlands, and the United Kingdom should also be represented.

Such a mission might well lead to increased credit participation by Europe in Italian development and increased two-way trade with the south of Italy.

If you think well of this, we could have appropriate joint State–FOA messages go to our Italian Mission and our USRO Mission to effectuate this program.²

Sincerely yours,

Stassen

1. Supra.
2. Stassen gave this letter personally to Dulles the following day. Dulles’ memorandum of their conversation, dated May 19, indicates that he did not urge any special economic aid to Italy “at this time” although Stassen said a small quantity of cotton might be available. Dulles indicated that he thought Stassen’s proposal for an OEEC mission to Italy rather than a U.S. technical mission seemed “a proper way of handling the matter.” (765.5 MSP/5–1954) In telegram 396 from Rome, July 30, Durbrow reported that, in accordance with instructions from the Department of State, he called on Scelba earlier in the day and gave him an aide-mémoire, which indicated that the United States, in light of a recent OEEC meeting at which the members had responded favorably to a proposal that an OEEC technical mission be sent to Italy, would support and participate in such a mission to survey economic development in southern Italy. Durbrow emphasized to Scelba that U.S. participation in the mission would not imply any commitment for further economic aid based on the recommendations of the mission. Scelba replied that the OEEC mission was not exactly what he had in mind, but that he would give serious consideration to the idea. (765.5 MSP/7–3054) A copy of the aide-mémoire given to Scelba was transmitted to the Department of State as an attachment to despatch 210 from Rome, Aug. 2. (765.5 MSP/8–254)