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NLT/NAVAL AIDE) 442 OFFICE OF THE SECRETARY OF STATE WASHINGTON State Dept. E.O. Guidelines, March 6, 1982 12065, By DEB NLT, Date 4-11-85 December 12, 1952 TOP SECRET SECURIT Y INFORMATION SUMMARY OF TELEGRAMS TRIESTE The Italian Ambassador, Tarchiani, has confirmed the news that Prime Minister DeGasperi found our suggested Trieste solution unacceptable, the main reasons being that our plan would leave so many Italians in Yugoslav territory that harmonious working relationships between the two countries could not be established and, secondly, that the proposal would be harmful to the present Italian Government in the forthcoming elections. In a meeting with the Secretary, the Italian envoy also sketched out in general terms a solution which he indicated the DeGasperi Government could accept, including districts which would go to Italy in return for two additional territorial concessions to Yugoslavia. The Ambassador explained the difficulties of De Gasperi's political situation and the importance of having the center parties obtain more than fifty percent of the votes. The Secretary pointed out we had spent a good deal of time formulating the plan, which we had hoped would also be ac- ceptable to Yugoslavia, but made it clear we were not trying to force our ideas on DeGasperi. If the Prime Minister could not accept it, the Secretary saw no alternative to maintenance of the status quo until after the Italian elections or until there was a new administration in this country. The Secretary agreed with Tarchiani that a possible British "provisional settlement" whereby Italy would take over all of the present US-UK zone (Zone A) was unacceptable, since it would freeze the present boundary without the advantages of final settlement. The Ambassador also indicated the Trieste prob- lem might be discussed by DeGasperi with the Secretary in Paris. UNITED In delivering an advance copy of the communique KINGDOM issued by the Commonwealth Economic Conference to Embassy London, Sir Roger Makins, Ambassador-designate to the US, described the next British moves to our representatives. He said Foreign Secretary Eden will encourage the Organization for European Economic Cooperation to continue its program,in- fluenced as appropriate by the results of the Commonwealth Con- TOP SECRET SECURITY INFORMATION