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September 29, 1976 - Ford, Italian Foreign Minister Arnaldo Forlani
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1553547
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September 29, 1976 - Ford, Italian Foreign Minister Arnaldo Forlani
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Memoranda of Conversations (Nixon and Ford Administrations)
Ford Administration Memoranda of Conversations
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North Atlantic Treaty Organization. (4/4/1949 - )
Communism
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File scanned from the National Security Adviser's Memoranda of Conversation Collection at the Gerald R. Ford Presidential Library
MEMORANDUM
THE WHITE HOUSE
DECLASSIFIED
SEGRET/NODIS/XGDS
WASHINGTON
E.O. 12958, Sec. 3.5
NSC Memo, 11/24/98, State Dept. Guidclines(Sulser)
By KBH , NARA, Date 6/29/99
MEMORANDUM OF CONVERSATION:
PARTICIPANTS:
President Ford
Arnaldo Forlani, Minister of Foreign Affairs of Italy
Amb. Roberto Gaja, Italian Ambassador to the U.S.
Raimondo Manzini, Secretary General of the
Italian Foreign Ministry
Brent Scowcroft, Assistant to the President
for National Security Affairs
Charles W. Robinson, Acting Secretary of State
Neil Seidenman, [Interpreter].
DATE AND TIME:
Wednesday, September 29, 1976
10:30 a. m.
PLACE:
The Oval Office
The White House
Forlani: Will you be campaigning during your debate?
The President: I will probably go out Monday, do a couple of minor things
on Tuesday, and prepare on Wednesday. Then on Thursday I have a
fund-raising dinner.
[Callaghan call comes in].
I am very sorry. I was about to say I am delighted to have you here
and make your acquaintance. I think we have no big bilateral problems.
I would like to hear how you see the situation in your country and any other
items of interest to you.
Forlani: Thank you very much for seeing me. I know your many
commitments, especially at this time and I greatly appreciate your kindness.
On the Italian political situation, my government is fulfilling its
international commitments, including NATO, despite all the press
insinuation to the contrary. The fact that it hasn't been possible to set
up a coalition government and that we ar e a minority government doesn't
SEGRET/NODIS/XGDS
CLASSIFIED BY Henry A. Kissinger
EXEMPT FROM GENERAL DECLASSIFICATION
SCHEDULE OF EXECUTIVE ORDER 11652
EXEMPTION CATEGORY 5 (B) (1, 3)
AUTOMATICALLY DECLASSIFIED ON Imp. to det.
SECRET/NODIS/XGDS
-2-
affect the integrity of our government. Among the many abstainees is
the Communist party. We have made clear this different Communist
attitude makes no difference to our policy and relations with the world.
If some factor should arise on the international scene, my government
would not hesitate to precipitate a domestic crisis if needed to deal with
the situation.
The first enactment of the new government was to add almost
$3 billion to the defense budget. That is one of the most significant
actions taken in recent years in support of NATO. These bills provide
for modernization of the Air Force and Army and are in addition to earlier
bills by previous governments for the Navy and Marines. What I think
is of interest is that the restructuring of our Army is getting strong
parliamentary support.
The President: Including the Communists?
Forlani: They are not condemning it. They have a cautious, but responsible
attitude. I believe it is interesting that the Communists are adopting a
flexible stand concerning NATO. Personally, I am not sure the Italian
Communists would like to see the present international equilibrium upset.
On the other hand, when I was Minister of Defense I could see this attitude
on the part of other Communists, especially Yugoslavia, and to some extent,
Romania. The wish they seem to have is that even though they are linked
through the Warsaw Pact they don't want the equilibrium upset.
Of course one cannot trust what seems to be. We must be cautious,
but we do need to observe these trends. Even if within NATO we sometimes
have differences -- like between Greece and Turkey or with France --
we see the same differences exist within the Communist bloc; it is not the
monolith it used to be.
As for our complex internal situation, our comment is to NATO and
to overcome our economic difficulties. I think we can overcome our
present difficulties. But to do so we need the support of our European
allies and most especially of the United States. The Italian people will
also perceive this.
The President: I am very pleased to hear this and especially your report
on your armed forces. For years we have had declining investment in
our military. I turned that around. [He described what he has done. ]
We intend to be a firm and strong partner. Our public's attitude has
SEGRET/NODIS/XGDS
SEGRET/NODIS/XGDS
-3-
changed. The pressures for unilateral reduction of forces in Europe
are lessening, though there are some who want to pull out everywhere.
It is very helpful to be able to show that we are not the only ones
increasing our contribution. We will be strong in the alliance, and must
be, because there is no diminution of the threat, even though we see some
signs of cracks in the bloc.
I am encouraged to hear your report on the Italian economic scene.
As I recall, at Puerto Rico, there was less optimism.
Forlani: There has been a good business recovery in production and
improvement in the financial situation -- in the balance of payments --
since Puerto Rico. Yesterday the Cabinet adopted a severe program
to fight inflation -- to increase production and control expenditures and
internal consumption. Of course, to control public expenditures and
internal consumption, it is necessary to hold wages down, and that takes
cooperation with the unions.
The President: Do you have wage and price controls?
Forlani: We have a cost of living escalator clause. It is a policy we
inherited from the past -- when prices go up, wages must rise. For
the current government this is the way to make it or break it. Either
we get things under control or we'll have another crisis.
In yesterday's program, we reduced the size of the deposit fund,
starting with 5% and going to abolition in 6 months.
The President: I certainly applaud the decisions taken by the Cabinet.
I know it was difficult politically. It strikes a responsive chord here
and we will be very supportive.
Forlani: This for us is decisive. Alone we cannot make it. We must
have solidarity with Europe and especially the United States. For the
Mediterranean area -- Spain, France, Portugal, etc. -- it is essential
to keep the democratic forces alive and have our economic recovery.
Only in this way can we keep the Communists under control. The gain
in Communist strength in Italy has been directly related to the economic
difficulties, the rise in oil price and prices in general. For 30 years
SEGRET/NODIS/XGDS
SEGRET/NODIS/XGDS
-4-
we have warded off the Communists, but we were always having economic
expansion, but when this crisis came up we almost lost it, but things
went better than we had foreseen. As you know, the party in power always
has the advantage when there is economic progress.
Your growing success in your campaign is due not only to you, but
what your Administration has achieved. I have spoken to many Italian
friends in New York who see Democrats who will vote for you because
you have brought about economic recovery. I hope we can do the same
in Italy.
The President: I think we have done well and I think our economic progress
will continue at a steady pace if we don't succumb to the temptation to make
quick fixes. I agree with your comments on the political implications of
economic developments.
[He described the current economic situation].
Forlani: I followed your debate with Carter. As a whole, while there
are differences between you, I wish we had all our parties within the
same political range.
The President: Please give the Prime Minister my warm regards.
Forlani: President Leone sends his very warm regards.
The President: Please give him and Mrs. Leone my very best wishes.
We are very appreciative of your bicentennial gift of La Scala. It was
a magnamimous gesture.
Forlani: May I say with extreme frankness and sincerity, for me and
the government, we are following your campaign and wish you all the
best in the election and for your family.
May I express thanks for your help also in the earthquake.
One last thing I should mention. After your elections, we must
think about Malta. We will have Mintoff with us for a long time now
and we should consider how to deal with him.
SECRET/NODIS/XGDS
=
P/Farlani P/ Forlani
27 Sept 76
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