Memorandum Regarding Italy

annexi time w Amin TOP SBERE ITALY (a) Redefinition of Policy and Interests in Italy Our objective 18 to strengthen Italy economically and politically BO that she can withetand the forces that threaten to sweep her into a new totalitarianism. Those forces are: economic distress; national humilia- tion; uncertainty regarding British intentions toward Italy and American readiness effectively to implement friendly politoy; the power and will of the USSR ae typified in Tito's nearly successful move in Venezia Giulia; internal political confusion and a well organized Communist party; the absence of any machinery for, and indeed any real experience of, democratic government; the knowledge that American troope are being withdrawn and with them the assurance of disinterested protection. Italian sympathies naturally and traditionally lie with the western d emocracies; with proper support from them Italy would tend to become a factor for balance in Europe. Her strategic position and economic ties with the Danubian countries would probably make it impossible for her ever to become a purely British sphere of in- fluence, even were that desirable. She would naturally tend toward a balance between east and west, and to en- courage such a balance would be vise. With reasonable economic well-being, sound government, and fair treat- ment by the victorious powers a violent ideological swing to right or left could be discounted. A moderate left movement is not only inevitable but should be en- couraged 80 a 8 to give scope to the essentially sound ARCHIVES ;NATIONAL TRUMAN CORDS AND July peasant and laboring classes and in order to avoid ex- a asperating by vain opposition a natural trend. is SERVIÇE" If the western Allies are to achieve these objec- tives they must take immediate steps to improve Italy's economic and political situation. These steps, covered in separate memoranda, fall into two categories: 1. Urgent economic assistance to enable Italy to stand on her own feet again. This assistance falls into three main categories: transportation, coal, and raw materials. 2. Political action to raise Italian morale, make an authoritative government possible, and permit Italy to become a responsible participant in in- ternational affairs rather than the ward or the vic- tim of the victorious powers. DECLASSIFIED (b) Revision SEGRET E.O. 11652, Sec. 3(E) and 5(D) or (E) Dept. of State letter, Aug. 10, 1972 By WLT-He MARS Date 6-29-76