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SECRET Opposed to the Communist groups are the Vatican and neo-Fascist elements. The latter are organized into apparently social clubs led by prominent neo-Fascists or monarchists. The main purpose of these organizations (like the Italian Social Move- ment and the National Reconstruction Front) is restoration of Mussolini's form of gov- ernment, especially his syndicalist economic structure. The neo-Fascist organizations, which have limited para-military capabilities, are many and scattered, and SO far lack central coordination and direction. Many such groups are reported to have sought alliance with the Common Man Front and the monarchists. Such an alliance, because it might become a strong anti-Communist force, would involve the Right in the inevita- ble leftist reaction, which could mean civil war. The Left will probably take direct action if the neo-Fascist movement develops important leaders and becomes strong on a national scale. An aggressive neo-Fascist movement would provide the Left with effec- tive propaganda. So far, except for sporadic outbreaks, the neo-Fascists have not launched a vigorous anti-Communist campaign. Probably the strongest single anti-Communist force is the Vatican. The Catholic Church, established by tradition and again recognized recently as the State religion, has as members the vast majority of the population.* Because of its widespread and well disciplined organization, the Church has exerted a strong influence on the various social classes throughout Italy. It can compete with Communism in popular appeal, since it, too, has men, money, and faith to make it a dynamic force. It has an under- standing of the spiritual needs of the worker, and it has ample funds for charitable distribution. But it has endangered its popular appeal because it advocates, through the Christian Democratic Party, only mild economic reforms, and, in general, preserva- tion of the status quo, and also because in 1946 it favored maintenance of the monarchy. At present, the Vatican is greatly alarmed at the prospects of a leftist victory in the national elections; as a consequence it has openly joined the political fray: (a) imposing religious sanctions upon Catholics who do not vote for a party which respects the prin- ciples and rights of the Church; (b) urging Catholics to defend their principles by mate- rial force if necessary; and (c) refusing absolution to Communists and their sympa- thizers. 6. THE STABILITY OF THE GOVERNMENT. Prior to the formation of the present non-Communist Government a series of gov- ernmental crises kept Italy in a state of sustained political turmoil, resulting mainly from the post-Fascist collapse of the country's morale and organization, the growing economic and financial crisis, the successful obstructionist tactics of the Communists and their leftist satellites, and the solidarity of the leftist bloc in contrast with the discord among the centrist and rightist parties. After the exclusion of the Communists and the Socialists from the Government and the admission of the moderate Left, its position became secure politically until the April 1948 national elections. * The latest official figures indicate that 97.12% of the population is Roman Catholic. How- ever, it must be noted that many Italians, especially in Northern Italy, are only nominally Catholic and are often anticlerical or atheists. I-11 SECRET

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    "ocrText": "SECRET\nOpposed to the Communist groups are the Vatican and neo-Fascist elements. The\nlatter are organized into apparently social clubs led by prominent neo-Fascists or\nmonarchists. The main purpose of these organizations (like the Italian Social Move-\nment and the National Reconstruction Front) is restoration of Mussolini's form of gov-\nernment, especially his syndicalist economic structure. The neo-Fascist organizations,\nwhich have limited para-military capabilities, are many and scattered, and SO far lack\ncentral coordination and direction. Many such groups are reported to have sought\nalliance with the Common Man Front and the monarchists. Such an alliance, because\nit might become a strong anti-Communist force, would involve the Right in the inevita-\nble leftist reaction, which could mean civil war. The Left will probably take direct\naction if the neo-Fascist movement develops important leaders and becomes strong on a\nnational scale. An aggressive neo-Fascist movement would provide the Left with effec-\ntive propaganda. So far, except for sporadic outbreaks, the neo-Fascists have not\nlaunched a vigorous anti-Communist campaign.\nProbably the strongest single anti-Communist force is the Vatican. The Catholic\nChurch, established by tradition and again recognized recently as the State religion,\nhas as members the vast majority of the population.* Because of its widespread and\nwell disciplined organization, the Church has exerted a strong influence on the various\nsocial classes throughout Italy. It can compete with Communism in popular appeal,\nsince it, too, has men, money, and faith to make it a dynamic force. It has an under-\nstanding of the spiritual needs of the worker, and it has ample funds for charitable\ndistribution. But it has endangered its popular appeal because it advocates, through\nthe Christian Democratic Party, only mild economic reforms, and, in general, preserva-\ntion of the status quo, and also because in 1946 it favored maintenance of the monarchy.\nAt present, the Vatican is greatly alarmed at the prospects of a leftist victory in the\nnational elections; as a consequence it has openly joined the political fray: (a) imposing\nreligious sanctions upon Catholics who do not vote for a party which respects the prin-\nciples and rights of the Church; (b) urging Catholics to defend their principles by mate-\nrial force if necessary; and (c) refusing absolution to Communists and their sympa-\nthizers.\n6. THE STABILITY OF THE GOVERNMENT.\nPrior to the formation of the present non-Communist Government a series of gov-\nernmental crises kept Italy in a state of sustained political turmoil, resulting mainly\nfrom the post-Fascist collapse of the country's morale and organization, the growing\neconomic and financial crisis, the successful obstructionist tactics of the Communists\nand their leftist satellites, and the solidarity of the leftist bloc in contrast with the\ndiscord among the centrist and rightist parties. After the exclusion of the Communists\nand the Socialists from the Government and the admission of the moderate Left, its\nposition became secure politically until the April 1948 national elections.\n* The latest official figures indicate that 97.12% of the population is Roman Catholic. How-\never, it must be noted that many Italians, especially in Northern Italy, are only nominally\nCatholic and are often anticlerical or atheists.\nI-11\nSECRET"
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