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SECRET eral Confederation of Labor (CGIL), they can call strikes to paralyze the nation's economy. Communist flexibility apparently permits them to cooperate with the various political groups SO long as it suits the Party's objective. Meanwhile their efficient sub- versive organization works to discredit the government at all times. The Communist march toward power has continued as a result of unemploy- ment and poverty existing beside evidence of wealth, corruption both within and without official circles, and a fumbling government. All these factors have impressed Italians as confirming what Communists preach as the "inevitable evils of capitalism." C. Opposition to Communism. The Communists are aware, however, that time can be used effectively against them. There are two main obstacles which might combat Communism: an improved economic situation and an anti-Communist bloc. The critical economic and financial situation in Italy can be remedied only by sufficient foreign aid for several years, and by restoration of public confidence in the government which has been seriously undermined by Communist obstructionist tactics and growing strength. The Italian population is traditionally anti-Bolshevik. Any revisions of the peace treaty by the US and UK in favor of Italy could strengthen this anti-Communist feeling in Italy. A Government with an economic program supported by sufficient direct US aid would have popular appeal. Assurance of US support would make likely in the next national elections another coalition Government based on the centrist Chris- tian Democrats, the Saragat right-wing Socialists, and other moderate groups. With the backing of the Vatican, the Christian Democrats have long been the principal anti-Communist force in Italy. Sufficient common ground has been found with the Saragat Socialists, together with other moderate groups, to form a strong anti- Communist bulwark. The Christian Democrats are, however, for the greater part, a conservative Catholic group advocating mild economic reforms with maintenance of property rights, while the right-wing Socialists, though anti-Communist, are none the less Marxists. Only a great fear of totalitarianism, plus assurance of external economic support, has caused both groups to modify their stands and collaborate effectively. There is also another possibility of an anti-Communist bloc which would be formed by the Christian Democrats and the rightist Parties (witness the switch of the Catholic Party to the Right with the advent of Fascism). Attempts, unsuccessful SO far, have already been made to align the Christian Democrats with the anti-Communist rightists, the Common Man Front, the Liberals, and the Monarchists. In event of the failure of the moderate parties in the national elections, fear of the common enemy would probably lead to a marriage of convenience between the Christian Democrats and the rightist parties. A Government based on such a coalition would suffer from numer- ous internal conflicts of programs and personalities. * It may be noted that all these factors are traditional as clearly indicated in the early section on "Political and Social Inheritance of Modern Italy". I-9 SECRET

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    "ocrText": "SECRET\neral Confederation of Labor (CGIL), they can call strikes to paralyze the nation's\neconomy. Communist flexibility apparently permits them to cooperate with the various\npolitical groups SO long as it suits the Party's objective. Meanwhile their efficient sub-\nversive organization works to discredit the government at all times.\nThe Communist march toward power has continued as a result of unemploy-\nment and poverty existing beside evidence of wealth, corruption both within and without\nofficial circles, and a fumbling government. All these factors have impressed Italians\nas confirming what Communists preach as the \"inevitable evils of capitalism.\"\nC. Opposition to Communism.\nThe Communists are aware, however, that time can be used effectively against\nthem. There are two main obstacles which might combat Communism: an improved\neconomic situation and an anti-Communist bloc.\nThe critical economic and financial situation in Italy can be remedied only by\nsufficient foreign aid for several years, and by restoration of public confidence in the\ngovernment which has been seriously undermined by Communist obstructionist tactics\nand growing strength.\nThe Italian population is traditionally anti-Bolshevik. Any revisions of the\npeace treaty by the US and UK in favor of Italy could strengthen this anti-Communist\nfeeling in Italy. A Government with an economic program supported by sufficient\ndirect US aid would have popular appeal. Assurance of US support would make likely\nin the next national elections another coalition Government based on the centrist Chris-\ntian Democrats, the Saragat right-wing Socialists, and other moderate groups.\nWith the backing of the Vatican, the Christian Democrats have long been the\nprincipal anti-Communist force in Italy. Sufficient common ground has been found\nwith the Saragat Socialists, together with other moderate groups, to form a strong anti-\nCommunist bulwark. The Christian Democrats are, however, for the greater part, a\nconservative Catholic group advocating mild economic reforms with maintenance of\nproperty rights, while the right-wing Socialists, though anti-Communist, are none the\nless Marxists. Only a great fear of totalitarianism, plus assurance of external economic\nsupport, has caused both groups to modify their stands and collaborate effectively.\nThere is also another possibility of an anti-Communist bloc which would be\nformed by the Christian Democrats and the rightist Parties (witness the switch of the\nCatholic Party to the Right with the advent of Fascism). Attempts, unsuccessful SO\nfar, have already been made to align the Christian Democrats with the anti-Communist\nrightists, the Common Man Front, the Liberals, and the Monarchists. In event of the\nfailure of the moderate parties in the national elections, fear of the common enemy\nwould probably lead to a marriage of convenience between the Christian Democrats and\nthe rightist parties. A Government based on such a coalition would suffer from numer-\nous internal conflicts of programs and personalities.\n* It may be noted that all these factors are traditional as clearly indicated in the early section\non \"Political and Social Inheritance of Modern Italy\".\nI-9\nSECRET"
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