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d.
The Peace Treaty.
The government's case for revision of the military clauses of the Peace Treaty
is based primarily on Italy's inability to defend its borders for more than a few weeks,
in view of which fact many Italians feel that participation in the Western security
arrangements as presently constituted would provide their country with little actual
additional protection and would leave it at the mercy of an antagonized USSR.
e.
Italy's Relations with the USSR.
Because of this desire not to antagonize the Soviet Union and because of gen-
uine economic needs, Italy's relations with the USSR and the satellites continue cor-
rect, and trade between Italy and Eastern Europe is being developed. Recently con-
cluded trade and reparations agreements between Italy and the USSR should result
in economic benefits to Italy, thereby increasing the domestic prestige of the Italian
Government. The government can impress the population with the fact that the
contemplated trade amounts to almost ten percent of Italy's present foreign com-
merce. Furthermore, whether or not the ambitious goals of the Italo-Soviet agree-
ments are reached, the Italian Government can point to these agreements as proof
that, contrary to the contention of the Communists, it is not a tool of the US.
The withdrawal by the USSR of its earlier support of Italian colonial claims,
although causing an immediately unfavorable popular reaction, has not greatly affected
official relations between the two countries. Because Italian hopes have been cen-
tered on western support of Italy's claims, Italian bitterness over any unfavorable
solution of the colonial or Trieste question would be directed more toward the West than
toward the East. Soviet obstruction of Italy's entrance into the UN, however, is a sore
point because of the extreme importance which Italy, for reasons of national pride,
attaches to regaining diplomatic parity with other nations. Omission from the Italo-
Soviet trade agreements of the word "friendship," indicates that, whatever their com-
plementary economic needs, mutual trust between the two governments remains at a
low level.
f. Italy and the Soviet Satellites.
Similarly, Italy's relations with Eastern Europe are based largely on economic
rather than political affinities. Current negotiations with Yugoslavia involve discus-
sion of Italian reparations to Yugoslavia, compensation for Italian properties con-
fiscated by the Yugoslav state, and conclusion of a fishing treaty; these discussions may
result in expanded trade relations between the two countries. The Yugoslavs have
made other friendly gestures, such as the return of Italian civilians who had been
captured by the Yugoslav forces during World War II. In recent months, therefore,
tension between Italy and Yugoslavia has considerably lessened.
The Free Territory of Trieste, however, continues to be a source of friction
between the two countries. Italians are counting heavily on the earlier recommenda-
tion by the Western Powers that Trieste be returned, and undoubtedly assume that
the return of that territory would follow upon an Italian participation in a western bloc.
6
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"ocrText": "d.\nThe Peace Treaty.\nThe government's case for revision of the military clauses of the Peace Treaty\nis based primarily on Italy's inability to defend its borders for more than a few weeks,\nin view of which fact many Italians feel that participation in the Western security\narrangements as presently constituted would provide their country with little actual\nadditional protection and would leave it at the mercy of an antagonized USSR.\ne.\nItaly's Relations with the USSR.\nBecause of this desire not to antagonize the Soviet Union and because of gen-\nuine economic needs, Italy's relations with the USSR and the satellites continue cor-\nrect, and trade between Italy and Eastern Europe is being developed. Recently con-\ncluded trade and reparations agreements between Italy and the USSR should result\nin economic benefits to Italy, thereby increasing the domestic prestige of the Italian\nGovernment. The government can impress the population with the fact that the\ncontemplated trade amounts to almost ten percent of Italy's present foreign com-\nmerce. Furthermore, whether or not the ambitious goals of the Italo-Soviet agree-\nments are reached, the Italian Government can point to these agreements as proof\nthat, contrary to the contention of the Communists, it is not a tool of the US.\nThe withdrawal by the USSR of its earlier support of Italian colonial claims,\nalthough causing an immediately unfavorable popular reaction, has not greatly affected\nofficial relations between the two countries. Because Italian hopes have been cen-\ntered on western support of Italy's claims, Italian bitterness over any unfavorable\nsolution of the colonial or Trieste question would be directed more toward the West than\ntoward the East. Soviet obstruction of Italy's entrance into the UN, however, is a sore\npoint because of the extreme importance which Italy, for reasons of national pride,\nattaches to regaining diplomatic parity with other nations. Omission from the Italo-\nSoviet trade agreements of the word \"friendship,\" indicates that, whatever their com-\nplementary economic needs, mutual trust between the two governments remains at a\nlow level.\nf. Italy and the Soviet Satellites.\nSimilarly, Italy's relations with Eastern Europe are based largely on economic\nrather than political affinities. Current negotiations with Yugoslavia involve discus-\nsion of Italian reparations to Yugoslavia, compensation for Italian properties con-\nfiscated by the Yugoslav state, and conclusion of a fishing treaty; these discussions may\nresult in expanded trade relations between the two countries. The Yugoslavs have\nmade other friendly gestures, such as the return of Italian civilians who had been\ncaptured by the Yugoslav forces during World War II. In recent months, therefore,\ntension between Italy and Yugoslavia has considerably lessened.\nThe Free Territory of Trieste, however, continues to be a source of friction\nbetween the two countries. Italians are counting heavily on the earlier recommenda-\ntion by the Western Powers that Trieste be returned, and undoubtedly assume that\nthe return of that territory would follow upon an Italian participation in a western bloc.\n6"
}