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NE/IT-5 CONFIDENTIAL -2- Italians also made significant concessions with regard to the Bermuda capacity printiples. However, the nego- tiations were suspended again, this time on the complex issue of multiple designation of carriers. The Depart- ment and the Civil Aeronautics Board are now exploring certain compromise arrangements. Italian Request for Nuclear Fuel In April 1965, Italy asked to purchase a small amount of low-enriched uranium for use in the experi- mental stage and in the eventual construction and operation by the Italian Navy of a nuclear-powered auxiliary ship. No U.S. technological assistance or information was requested. The Executive Branch favored the conclusion of a military nuclear agreement with Italy to provide this fuel, but the Joint Commit- tee on Atomic Energy and certain elements in the Execu- tive opposed a military agreement. In view of our inability to meet the Italian re- quest, Italy turned to France and to Great Britain. The French agreed to provide fuel for the land-based critical experiment. The British offered to provide fuel for the shipboard reactor, but at a high price. So far, Italy has not accepted the UK offer. Italy still seems to want to obtain the fuel from the United States. Latin America As Secretary of the Italian Christian Democratic Party, Prime Minister Rumor made a particular effort to establish relationships with the Christian Democratic Parties in Latin America. While Rumor is fully aware of the economic and political limitations on Italian influence in Latin America, he is convinced that Europe, and Italy in particular, can play a useful role in Latin America by the development of what he has referred to as a "triangular relationship" with the United States. CONFIDENTIAL

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    "ocrText": "NE/IT-5\nCONFIDENTIAL\n-2-\nItalians also made significant concessions with regard\nto the Bermuda capacity printiples. However, the nego-\ntiations were suspended again, this time on the complex\nissue of multiple designation of carriers. The Depart-\nment and the Civil Aeronautics Board are now exploring\ncertain compromise arrangements.\nItalian Request for Nuclear Fuel\nIn April 1965, Italy asked to purchase a small\namount of low-enriched uranium for use in the experi-\nmental stage and in the eventual construction and\noperation by the Italian Navy of a nuclear-powered\nauxiliary ship. No U.S. technological assistance or\ninformation was requested. The Executive Branch\nfavored the conclusion of a military nuclear agreement\nwith Italy to provide this fuel, but the Joint Commit-\ntee on Atomic Energy and certain elements in the Execu-\ntive opposed a military agreement.\nIn view of our inability to meet the Italian re-\nquest, Italy turned to France and to Great Britain.\nThe French agreed to provide fuel for the land-based\ncritical experiment. The British offered to provide\nfuel for the shipboard reactor, but at a high price.\nSo far, Italy has not accepted the UK offer. Italy\nstill seems to want to obtain the fuel from the United\nStates.\nLatin America\nAs Secretary of the Italian Christian Democratic\nParty, Prime Minister Rumor made a particular effort to\nestablish relationships with the Christian Democratic\nParties in Latin America. While Rumor is fully aware\nof the economic and political limitations on Italian\ninfluence in Latin America, he is convinced that Europe,\nand Italy in particular, can play a useful role in Latin\nAmerica by the development of what he has referred to as\na \"triangular relationship\" with the United States.\nCONFIDENTIAL"
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