Memorandum, State Department Summary of Telegrams

NLT (Naval Adel347 OFFICE OF THE SECRETARY OF STATE DE WASHINGTON E.O. 12065, Sec. 3-402 State Dept. Guidelines, March 6, 1982 April 4, 1952 By DED NLT, Date 9-9-85 TOP SECRET SECURITY INE ORMA TION SUMMARY OF TELEGRAMS TRIESTE The first meeting of the US, British and Italian representa- - tives on the Trieste problem was held in the British Foreign Office yesterday. The Italians expressed the "great expectation" of the Italian public and the importance which their Government attached to these talks. They noted that the demonstrations had ceased pending the pre - sumedly favorable outcome of the talks and added that if the outcome were "disappointing" it could also "have a negative effect on the helpful and friendly relations" in the Atlantic Pact. They also stressed that they wished the talks to be brief and secret. The Italian Ambassador acknowledged that although the talks were limited to Zone A and were ostensibly technical and adminis- - trative in nature they were basically political. He said the Italian objec - tive was to "establish a fair balance between the situations in Zone A and B" that whereas in Zone B Tito ruled with full power and had carried out a ruthless denationalization, Italy had no role in the administration of Zone A, where Allied Military Government policy endeavored to keep the Italians and Yugoslavs at arms length and tended to foster "selfish in- dependentism--the root of all the troubles". The Ambassador stressed that the present talks should aim at bringing about a temporary arrange - ment which would not prejudice the solution of the problem as a whole. The British and American representatives asked the Italians to present specific proposals and the latter agreed to do so at their meeting today. Meanwhile an intelligence report from Trieste indicates that the Italian Government has decided that the present moment is not propitious for a political settlement of the Trieste problem which would favor Italian demands and that a final settlement should await a more suitable international situation. Therefore, they should not seek to place Italian troops in Trieste. Their objective at present, according to the report, will be merely to have: 1) Allied Military Government laws in Trieste that are more equal or parallel or integrated into Italian laws; 2) a new spirit in the Military administration based on the TOP SECRET SECURITY INFORMATION