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SECRET 401424 CENTRAL INTELLIGENCE GROUP 2430 E STREET NW. WASHINGTON 25, D.C. 15 SEP 1947 whic. MEMORANDUM FOR THE PRESIDENT The imminent deposit in Paris of the ratification of the Italian Peace Treaty by the Big Four will place into automatic effect the clause requiring the with- drawal of US and UK troops from Italy within 90 days. Such withdrawal would seriously affect US interests and security in Italy by: (a) throwing open to Communist pressure the important area of Northern Italy where the proximity of Yugoslav Communists makes it possible for the USSR to create a situation on the border similar to that pre- vailing in Northern Greece; and (b) leaving the entire country and the weak De Gasperi Government 111-prepared to cope with the powerful Communist Party in the national elections TRUMA NARA scheduled for April 1948. l The Government's military forces are small and poorly equipped. The prevailing food shortage and the critical economic condition of the country during the difficult winter months will render it particularly susceptible to Communist propaganda and pressures. The ratification of the Peace Treaty by the USSR at this time was undoubtedly motivated in part by the desire to bring about the withdrawal of US-UK troops during the critical pre-election period. Under the circumstances three courses of action are open to the Italian Government: (1) It could request the continued presence of the occupation troops. Such a request would amount to political suicide for the De Gasperi Government as public opinion would be aroused against US disregard of the Treaty; and the Communist Party would be provided with a cogent nationalist argument with which to stimulate anti- US sentiment. (2) The Italian Government could, acting as a sovereign state, offer the use of certain port and rail- way facilities to the US in order that maintenance and DECLASSIFIED RAC,11/19/07 SECRET Authority NLT-PSF-50-7-3 By So NARA, Date