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Policy Toward Italy 4 The objectives of the three governments with regard to Italy are directed towards her early political independence and economic recovery, and the right of the Italian people ultimately to choose their own form of government. Italy's present status as co-belligerent and uncon- ditionally surrendered enemy is anomalous, and hampers every effort both by the Allies and by Italy herself, to improve Italy's economic and political situation. This anomaly can be finally solved only through the negotiation of a definitive peace treaty which would at best require some months. The preparation of such a treaty should be one of the first tasks of the suggested council of foreign ministers. ARCHIVES s PATIONAL RECORDS AND Meanwhile, however, improvement in the Italian in- SERVICE" ternal situation would be greatly facilitated by some immed- iate interim arrangement whereby the Italian government would have some tangible recognition of Italy's contribution toward the defeat of Germany. It is therefore recommended that the short terms of surrender and the numerous obsolete clauses of the long terms of surrender be terminated, and replaced by certain undertakings on the part of the Italian government to meet the requirements of the existing situation.