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CONFIDENTIAL 17 /GS /C P t 1] Italy December 1973 NATIONAL INTELLIGENCL SURVEY CONFIDENTIAL f, APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200080001 -6 NATIONAL INTELLIGENCE SURVEY PUBLICATIONS The ba-tic unit of the NIS is the General Survey, which is now published in a bound -by- chapter format so that topics of greater per- ishability can be updated on an individual basis. These chapters� Country Profile, The Society, Government and Politics, The Economy, Military Geog- raphy, Transportation and Telecommunications, Armed Forces, Science, and Intelligence and Security, provide the primary NIS coverage. Some chapters, particularly Science and Intelligence and Security, that are not pertinent to all countries, are produced selectively. For small countries requiring only minimal NIS treatment, the General Survey coverage may be bound into one volume. Supplementing the General Sur� ^y is the NIS Basic Intelligence Fact- book, a ready reference publication that semiannually updates key sta- tistical data found in the Survey. An unclassified edition of the factbook omits some details on the economy, the defense forces, and the intelligence and security organizations. Although detailed sections on many topics were part of the NIS Program, production of these sections has been phased out. Those pre- viously produced will continue to be available as long as the major portion of the study is considered valid. A quarterly listing of all active IIS units is published in the Inventory of Available NIS Publications, which is also bound into the concurrent classified Factbook. The Inventory lists all NIS units by area name and number and includes classification and date of issue; it thus facilitates the ordering of NIS units as well as their filing, cataloging, and utilization. Initial dissemination, additional copies of NIS units, or separate chapters of the General Surveys can be obtained directly or through liaison channels from the Central Intelligence Agency. The General Survey is prepared for the NIS by the Central Intelligence Agency and the Defense Intelligence Agency under the general direction of the NIS Committee. It is coordinated, edited, published, and dissemi- nated by the Central Intelligence Agency. WARNING This documW contains information affecting tint national defense of the United States, within the meaning of title 18, soctiont 797 and 791 of the US code, as amended. Its transmission or revelation of its contents to or receipt by an unauthorized person is prohibited by law. GLASS FIED BY 019611. EXEMFT FROM GENERAL DECLASSIFI- CATION SCHEDULE OF E. O. 11632 EXEMPTION CATEGORIES SR (1), (2), (1). DECLASSIFIED ONLY ON APPROVAL OF THE DIRE OF CENTRAL INTELLIGENCE. APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200080001 -6 rnn��u��'aLc X WARNING The NIS is National Intelligence and may not be re- leased or shown to representatives of any foreign govern- ment or international body except by specific authorization of the Director of Central Intelligence in accordance with the provisions of National Security Council Intelligence Di- rective No. 1. For NIS containing unclassified material, however, the portions so marked may be made available for official pur- poses to foreign nationals and nongovernment personnel provided no attribution is made to National Intelligence or the National Intelligence Survey. Subscctions and graphics are individually classified according to content. Classification /control designa- tions are: (U /CCU) Unclassified/ For Official Use Only (C) Confidential (S) Secret X APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200080001 -6 GENERAL SURVEY CHAPTERS COUNTRY PROFILE Integrated perspvch%v of the subject countrx Chronology Area Brief Summarx Map THE SOCIETY Social Ntructwe Population Labor Health I,ixing conditions Social problems Religion 0 Education 0 Public m- formation Artis.ti: expression GOVERNMENT AND POLITICS Political evo- lution of the� state Gme�mmental strength and stahilih Structure and function Political dx- namics National policies Threats to stahilih The police Intelligence and securitN THE ECONOMY Appraisal of the economx Its strochcre� agriculture, fisheries, forestry, fuels and p(mer, metals and minerals. mannfachcring and construction Domestic trade Fvonomic policx Mid de%clopmeFit 0 International economic rela- tions TRANSPORTATION AND TELECOMMUNICATIONS Appraisal of systems Strategic mohilih Railroads Highxxa%s Inland %aterm ays Pipelines Ports Merchant marine Civil air Airfields The telecom system MILITARY GEOGRAPHY Topography and climate Military geographic regions Strategic areas Internal routes Approaches: land. sea, air ARMED FORCES The defense establishment e Joint activities Ground forces Naxal forces Air forces Pararnilitarx SCIENCE I.e xrl of scientific advancement Or- ganization, planning, :end financing of research Scientific education, manpower, and facilities a Major research fields APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200080001 -6 =rn is i� I w& C i-k: :4 #r t 9 Y yes t Asti..- k tt The ineomplete Miracle 1 The Shallots% Roots of Derntar c% Tempering Unih "ith Disersih It's Different in the Stnth The Miracle and After Wider Frontiers The Weight of Inertia Chronology 16 AreaBrief Summary Map follou�.s 19 This Cuantry Profile was prepared for the NIS by the Central Intelligence ,%gency. Research Ica.s stub stardially completed by September 19;3. CONFIDENTIAL APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200080001 -6 r y IW it r; I i �tea.. 1 i J 1 r -fir W i The Incomplete Miracle Postwar Italy experienced a creative flowering and a dramatic economic boom; in fact, Italy deserves, perhaps even more than West Germany, the word "miracle" for what it accomplished. The dynamic Italian people showed they could compete with anyone on the world market, and Italian exports penetrated every country. But since 1970 the boom has petered out, and the future rate of economic progress is uncertain. It remains clear, however, that Italian socie- ty has great vitality and also serious problems. The problems and defects that sidetracked the miracle have a long history, and their solution will take time and much wisdom; but, judging from their history, the Italians will scrape through. (u /ou) One of the most important things to realize about Italy is that it is rich in people but poor in natural resources. Except for extensive reserves of natural -as and smaller reserves of oil (which were discovered only after World War 11), the country has scanty mineral resources. Mountains and hills cover about four- fifths of the land; only a small fraction is fovorable for agriculture, and sorne of this is only beginning to be properly cultivated. One can get an idea of Italy's material limitations by making a comparison with France the :}I million Italians live in about half tit^ space oc:upied by the 52 million French People and have only about it fourth as much Rood cropland. (u /ou, But Italy's most important resource has always been its people. Two thousand years ago their energy and organizing skill spread the great Roman Empire over North Africa, the Near Fast, and most of Europe; tnd out of the many cultures they encountered they fused something new, snaking Rome the center of Western civilization. Even after the sheer mass of barbarian in- vasions toppled the empire, Latin remained the language of European education, and Roman civiliza- tion its ideal; and when the German tribes settled down and began to organize themselves in the Middle Ages, they called themselves by the magic name, "Roman Empire," When educated Europeans even- tually began to write seriously in their own vernacular as well as in Latin, their pioneer a td inspiration was Dante Alighieri of Florence (n on; For the Western world, Italy has been a glowing hearth f hundreds of years: re'memberec' during the turbulent Dark Ages as the vanished center of order and the good life; then dazzling scholars and artists with a burst of creativity combining old and new; and perpetually a source of inspiration to the devout. This sustained admiration and affection has created an Ita- ly of its own, ever renewed by rediscover" by new generations of travelers, students, and devotees, and felt even by people untaught in Latin, unsympathetic to the Roman Catholic Church, and uninterested in art. Arcund and beyond the actual countr and people lies the intangible Italy of the Western heritage. (u; "o u Today's Western culture is in no smal! part a product of the Italian past, summed up in the ruins of the Forum and the glories of the Florentine galleries. The immense achievement of the Renaissance began in the city states of nor.h Italy after they won their in- dependence from the German Holy Roman Emperors in the 13th century. For the next 250 years thev were more :)r less ;elf governing, or subject only to local tyrants. Florence led the way in literature, painting, scu architecture, and music, and soon the Renaissance Ud spread to ott r cities of north Italy and Western Europe. It flourished on the new freedom, the new prosperity, and a doulle inspiration: the Christia! faith continued to be an active source, while the rediscovered classics were a lively new cue. Both proved capable of responding to everything an artist could put into them, and to that enthusiasti age they were not irreconcilable mode; of thouf ht, but gave a common impulse tc artists, scholars, and the wealthy. The many school- and patrons gave the artist altertrati%e sours ^s of instruction and support �in other words, freedot and prestige. (u,'ou) The Renaissance M-in has become a byword for self confident exploration in every field and for weds personal interests and accomplishments. "rhe architect Alberti, for example, was also an outstanding athlete, a composer of music, an amateur of mathemati:s and physics, a gifted painter, and an able writer; he once said, "Men can do all things if they will." It was an age when merchants and rulers like the Medicis were APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200080001 -6 familiar with Latin and Greek literature and would spend vast sums for ancient manuscripts as well as for the newest works of art. The Renaissance tradition of individualism and wide cultural interests has never died out in Italy, and it still contributes to the quality of life there. (u ou The everyday Italian in the city goes to work through a museum of architecture: ancient, medieval, and all kinds of modern jumbled together, lived in, worked in �the electricity, plumbing, and heating more or less obtrusive depending on the period or cen- tury when they were installed. The great cultural periods arc as much a part of his life as the furniture of a childhood home, and even to the Italian who has given no thought to abstractions since primary school, the implications of the Roman temples, circuses, and country villas; of the massive medieval defenses; of the exuberant multicolored marble elegance of the Renaissance are present always. uiou) The country man is no less aware of the past. Hi, lanes are as likely as not to be the straight Homan roads, crossing by an arched bridge over a river �only the country wagons, still built to the Roman gage, can use them; the modern roads go elsewhere. His church probably has faded Romanesque frescoe-, flat and staring, above the altar, or the baroque saints, their robes perpetually swept by the high winds of the 17th century. (ujou) The very landscapes in the background of Renaissance painting� horizons of tumultuous hills as delicatel cultivated as gardens, which any American in art appreciation class considers a romantic ex- aggeration �are the landscapes the Tuscan farmer lies among and the Tuscan commuter views from his bus. The continuity i A)% u ou The appreciation of heauty. focused by great painters, is perpetually refreshed in Italy; and the peo- ple are accustomed to b -auty and can respond to it without self- consciousness or pos-. But the obvious continuity has another effect man Italians have something in common with the ordinary children of extraordinary parents: a puzzled sense of inadequacy. or is it loss, or have we been robbed? All that was com- monplace in Rome and Florence is forgotten, and only the impression of vanished power and glory remain. It is a proud and disturbing heritage. (u ou Italians today are proud of their not,le heritage, but they also want to he modern, with the best cars and neon signs and the latest fashions. Man z family living in an 18th century walkup would trade its priceless facade for gaod plumbing, an:: man a builder, encountering yet another mosaic as he digs a foundation, conceals it from the historical monuments official, for he is understandably reluctant to idle his construction crew and tie up his funds during months o: vears of archaeological debate over the value of the new find. (1""111 The Shallow Roots of Democracy (c) With 35 changes of government since World War 11, the Italian Government is a remarkable example of in- stability. This becomes easier to understar d when viewed against the backdrop of Italian histouy, for the people have had little experience with representative democratic government. Even after unification in 1810, relatively few Italians could vote until after World War 11, except for the democratic a �periment from 1919 to 1922. The government, shaped on the British model in the mid -19th century, was created by a few north Italians� particulariy by Garibaldi, 2 (savour, Mazzini, and the central figure, King Vittorio Emanuel( 11 of Piedmont. There was no system of popular local govemmeot to build on, aad little un- derstanding or support among people to whom govern- me nt had alavays been something one endured. Cavour, "the Bismarck of Italian unity," forged the peninsulas kingdoms, principalities, and Papal States into a centralized constitutional monarc with a king, a parliament, and a cabinet ministry responsible to the parliament. Elections were held �among a tiny band of male property holders. In the south the land APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200080001 -6 APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200080001 -6 25X1 APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200080001 -6 25X1 +er. c�rr ated bs special statutes, in areas %hose separteness "a, obvious �the islands of Sicily and Sardinia, the F� rich speaking Valle d A nta, and the partl,. Ger- man- speaking region of Trentino -Alto Adige �and the c�onstitutit,n simple formalized them. The partl% Slavic region of Friuli Venezia Giulia was formed in 1963, deia%ed 15 sears b% protracted negotiations with l 1igoslasia about Trie,te. These five %sere all sp -_ial eases, all far from Rome; the other 15 existed onh at the level ,f constitutional principle, the difficult prac�- tic�al details being endlesa% debated. In 1968 parliament finally provided for the election of ass in the 15 remaining regions; the assemblies then drafted regional constitution: and parliament ratified them, all without am great delay. In the poorest areas, the lucrative position of capital city :ts hotic contested, and in Calabria and Abruzzi hitter disputes and even riots took place over its selec- tion: in both, the regional government was finally divided betHCen two cities. The legal transfer of powers took place on 1 April 1972, and the regions began handling such matters as town planning, urban and rural police, museums and libraries, public welfare and health ae hospital assistance, regional transportation and bus services, and regional roads, aqueducts, and public works. On 5 APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200080001 -6 ;i 4 5 APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200080001 -6 that date, also, 14,000 civil servants were transferred from national -level to regional assignments. A year later some of the legal transfer of pow -r was still in process, and Rome still refused to transfer some powers. For example, the regions are trying to protect the envir.)nment and to improve land us(, but the national government has kept control of many aspects of those subjects. Po.entialiy the most explosive region has been the German- speaking area on the southern slopes below the Brenner Pass, the South Tyrol, which Italy ac- quired from Austria after World War I and named the Alto Adige. After World War II it was promised autonomy. and Rome kept that promise �but merged the German- speaking area with thy- predominanth Italian province of Trento to Porn. au Italian dominated "autonomous region" (:ailed Trentino Alto Adige The German- speaking people number about 200,M), and their predicament evokes much sym- pathy across the border in Austria. Anti Italian terrorist activities have been serious in the region, but have diminished since the Decembei 1969 agreement between Austria and Italy, which provided that Ronne would give progressively more atrtcnomy to the Ger- man -speaking part of the region red that the German language would have equal status with Italian in the public media and schools of the whole region. The regional governments ha: e still to prove themselves. Their proponents hale long held that, be- ing on the scene, they would appreciate lo-al needs more acutely and respond more quickly. If effective, regional governments could indeed do much to dispel the indifference, frustration, and resentment that Italians generalh feel toward government. People might then see their votes as a genuine way of com- munication and action. But if the reguIr political par- ties view them as another source of patronage rather than as a field of endeavor, they will increase the average Italian's alienation from his government �and they may also increase his interest in the Communists Already the Communists dominate the govenments of the three "Red Belt" regions (Emilia- Romagna, Toscana, and Umbria), and they seem determined to be responsible and effective To the surprise of inam observers, their constitutions did not differ greath from those submitted by other regions, and earl' reports indicate that the Communists are using their hest administrative talent on the other hand. Sicily has had regional status for a quarter centun, and its gnernment is a thorough tangle of cor.uption, in- yols Christian Democrats, Communists, and %lafia alike. Rome regards the region it goyernments with deep suspicion, and the regions consider their budgets (allocated from Ronne( to he Inadequate By mid -1973 the major regional activih had be en the preparation of massive studies on regional problems and on regional aspects of national problems. In 1972 for the first time the Prime 'Minister started the practice of meeting with the regional presidents each month to discuss regional matters. There had been no official channel between the presidents and Rome befor and dialogue has been extrerneiv important Time will tell whether the regional governments will be efficient or whether the sins of the central bureaucracy Hill he duplicated in every regional capital. It's Different in the South (c) The poverty of southern Italy has been the most conspicuous national problem ever since the country [)(-came a nation. Even a casual observer is struck by the difference between the green north and the south and between the hustling, building, noisy in- dustrial cities of the north and the south's picturesque rustic poverty The problem area is called the Mcz- 6 zogiorno. the land of the midday sun, it includes the foot of the heart almost up to Rome and the islands of Sicily and Sardinia� which, though different in histon and culture from the southern part of the peninsula, have shared its destitution. The difference starts with the climate The north is almost a part of central Europe, with cold wet winters APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200080001 -6 and hot summers and reasonable rainfall all year long �a rich land with a modern, varied agriculture. The south is the brilliantly sunny ,'Mediterranean land, where the summers are hot and so dry that except where the land is irrigated only drought resistant vegetation can survive� particu'..-ly the classical olives, %%heat� and grapes. The pale green fields of spring soon become arid and tawn and sometimes they are further burned by the dry .rirorco (hot, dust laden winds that Mow from Africa). Most stream beds are dry in summer, making irrigation difficult even for large landowners; big dams and government money are needed Rain comes to the south in autumn and winter, often as violent storms that fill dry beds with raging torrents that erode and destrov. The differences are historic as well as geographic. The self- governing cities of the Middle Ages and Renaissance, the centers of wealth and civilization, were in the north. The south was perpetually a colony (in the sense of being exploited): first of the Greeks; then of the Romans, who almost o',literated its thriv- ing culture; and when Rome fell, of Arabs, Normans, Spaniards, and French in turn. The unprotected peasants retreated to hilltop villages for safety from such marauders as the Vikings and later the Harbary pirates, and the coastal lowlands that had been the granary of the Greek and Roman empires became deserted marshes. Ancient drainage and irrigation systems went out of use; neglected lowlands became malarial and shunned, and the peasants worked the dry slopes and highlands with effort and ingenuity, usually for absentee landlords. Partly as a result of this history, the people themselves are different. Bustling, cosmopolitan northern Italy contains most of th^ physical types of western and central Europe; in fact, there are probably as many blonds there as in some regions of Germany The people of the south are more uniform, the majori- ty being what many Americans assume to be the Italian type �with dark hair and eyes and olive skin. From the beginning, the unification of Italy seemed to bring growing prosperity to the north and nothing to t `r t Z dW �a fr �'1 1 I.- d APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200080001 -6 the south. The north tended to regard the south as an exasperating millstone around its neck, while the south envied the north and blamed Rome for the difference. Over the years various official inquiries were made into conditions in the south, which produced some valuable information �but no action. Early in the 20th century, the government in Rome, spurred by the example of a few northern philanthropists, began to take action. Special laws es- tablished programs of public works, tax exemptions, and other assistance to the south, but progress was slow. The major public works project, the aqueduct of Puglia, which was designed to bring water from the mo-:ntains across to the tableland at the heel of Italy, was 0egun in 1906 and completed only in 1938. Mussolini launched projects for land reform, drainage, irrigation, and resettlement in various parts of Italy, and these were of some value to a few southern places. Land reclamation projects lagged b:cause of endemic malaria in the lowlands �in 1925 one out of seven workmen draining the Maccarese marshes died of malaria. It was not until the Allied armies arrived with DDT in 1943 that the eclamation of the malarial lowlands became possible. The Safety Valve For more than 100 years, emigration has provided a safety valve for the population pressure in the south. The outward flow, to manv countries besides the Uni! States, began as a movement of about 120,000 persons a year during the latter part of the 19th cen- turs. Bs the turn of the crntury the figure had doubled, and IH�tween 1901 and 1914 it averaged more than 600,(00 (th 873,0(N) emigrants of 1913 were the high point of the exodus). After World War I emigration was restricted, partly by the receiving countries and partly by the Fascist regime in Italy, which was in the throes of Mussolini's colonial adventure. Much money and en; rgv was wasted in Ethiopia. Libya, and Somalia before the dream of settling in those areas was abandoned. An estimated 25 -30 million people left Italy be twee n 1861 and World War 11--yet the pop- ulation in Italy increased by 20 million during the same period. Called the "hemorrhage of the Mersogiorno" by the southern press, this outflow recommenced after World War 11, but by 1955 it had shifted mostly toward the northern cities of Italy, creating a new social problem there. (To some extent this movement to the north compensates for the high birthrate of the south� double that of the north.) The north already knew southerners, usually in ill -paid official jobs that northerners disdained or did not need; cities like Milan and Torino seemed full of Sicilian and Calabrian policemen, postmen, anu tax collectors. But these had been white -collar workers from middle -class southern families. After 1955 it was the really poor, sometimes illiterate, young peasants who swarmed to the north for jobs in industry. By then a city like Milan had recovered from the war; it had got its people housed and its children in school, and had almost forgotten about illiteracy. The intruding southerners found themselves blamed for disease, delinquency, and crime; discriminated against by landlords; and referred to scornfully as "Africans." ;n many places the municipal officals and the church seemed unable to cope with their plight, but the Communist Party and its labor -union affiliates set up a massive grassroots program to help them adjust to the un- familiar life �a policy that has paid off in votes in the elections of the last decade. Rehabilitation By the end of World War If the already wretched standards of living in the south had become worse, I agrarian riots and peasant seizures of land demonstrated the mood of the southerners, and it had becx)me apparent to the government at Rome that something must really be done. Between 1947 and 1957 at least 340 laws affecting the south were passed i by national and regional (on Sicily and Sardinia) parliaments, and many more have been passed since then. The mos' important was the establishment in 3 March 1950 of the Cassa per it Mezzogiomo (Fund for j the South), designed to be the chief instrument of government policy for the rehabilitation of the south. The Cassa has not replaced the existing government agencies, which have continued their normal activities in the area, but it has specialized in a massive program for economic development and has allocated billions of dollars for land reclamation, land reform, irrigation, and industrialization. In most parts of the south the land reform program operated with relative honesty and efficiency (Sicily being the outstanding excep- tion), and the Cassa did not become the gigantic pork barrel that its opponents had predicted. Vast areas sometimes miles square �were the hereditary property of dukes and counts and others, who probably lived in Rome and who seldom, if ever, s isited ttieir holding. Some had a sentimental feeling for the ancestr:.) land, but few had any practical in- terest beyond the revenues. Most owners wanted ex- penses kept to a ;ninimum, and were not interested in land improvement and modernization of agriculture. Drastic land reform seemed a logical step in dealing with the south's farm problems; unemployed war veterans wanted land or jobs, and in some places squatters were already settling o -n neglected lands of, APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200080001 -6 0 f l C absentee owners. Regional agencies of the Cassa took over large estates and subdivided them. In some cases they pai� for the land at the value the owner had declared in his last tax statement, a price that amused the reformers more than it did the landowners. Since 1930 about 700,000 hectares (2,700 square miles) have been distributed to about 100,010 peasant families. Much more has been involved than redistribution, however: land has been reclaimed from waste and marsh eroded slopes have been planted to trees or other vegetation roads, water mains, sewers, irrigation systems, and powerplants have been built, cooperatives organized, and social services established. Tl.e most spectacular changes occurred where the land could be irrigated. A tract planted in tree crops (oranges, peaches, pears, or apricots) or in tobacco or market gardens can easily return 10 times as much as the old wheat and olives. In the irrigated plains small new houses, each on its own land (generally 4 or 5 hec- tares), line the new roads, where cars and motorbikes and small tractors outnumber donke carts. Not all areas have flourished; the coat south of Crotone, for example, still produces little except meager crops of wheat. The poor gray soils, sticky and unworkable in winter, parched and dusty in summer, could not be irrigated, and one out of three of the new- ly install, -d farmers gave up after 2 or 3 years. On the island of Sardinia the land reform gave inixed results. About 63,((X) hectares were expropriated. divided, and turned over to 3,906 families who were moved from overcrowded villages to new government built farmhouses. Mistakes were numerous: some land was unsuitable, some farms too small, and some settlers totalIv unsuited to the life; hundreds of houses were abandoned. Some settlers thrived, however, especially the "Tunisians" (farmers of Sicilian descent expelled from Tunisia). Resourceful and skilled at fruit farming, they were assigned after 1962 to some of the abandoned reform- farms. There they planted orchards, irrigated them from wells they sank themselves, and created profitable, well -kept farms with splendidly decorated farmhouses. Some neighbors are following their example, but others still live at the subsistence level, raising a little wheat, olives, and forage for a few sh.ep and goats. Sicily had its own land reform law, and reform has not been effective. Much of its budget has gone to pa the 3,000 employees, whose efforts endowed Sicily with several thousand isolated farmsteads (generally a house on a few hectares of rocky infertile upland that could not support a family), most of which have remained uninhabited. Rural poverty there is still the most severe in Italy. In the interior the people still live in peasant cities �some contain as many as 40,000 9 APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200080001 -6 people �and commode daily to their scattered patches of earth on food or by mule. bicycle, or motorbike. In the south as a whole, the Cassa has stimulated in- dustr and several important new industrial zones have 'been created. The most important are the Bari- Brindisi- Lecce- Taranto zone in Puglia and the coastal strip of Catania- Augusta Siracusa in eastern Sicily. Taranto has one of the largest and most modern steel mills in Italy; Lecce has the largest factory in Europe for earthmoving equipment, and Bari has an oii refinery and other new' plants. The Sicilian coastal strip has beco)rne a major center of oil refining and petrochemical industries. A number of new factories, including the giant Alfa -Romeo automobi;e plant, have been built in the Naples area, which always had some factories. In some cases the building of factories in the south has backfired. The initial demand for low skilled con struction worker was often followed by layoffs and staff- ing at a reduced level by skilled workers and engineers from elsewhere in Italy. The construction workers, many of whom had shifted over from farming, either joined the rolls of the unemployed or found some sort of low -paid work. Critics of the Cassa have enjoyed referring to the new factories as "cathedrals in the dese�rt," but most government planners still consider that industrialization is the best way to make use of the excess labor of the south. From 1950 to 1970 the per capita income of southerners rose from U20 to $800 per year, but their position relative to the northerners remained roughly the saone. Nevertheless, keeping in step with the north during those %cars was no mean achievement. Accord ing to official estimates, the actual number of jobs in the south dropped, primarily because the number of people working on the land diminished by half, while all of the new' industries added less than 200,000 new jobs. Poverty has been reduced, but unemployment is still a problem. Around Naples, for example, there are usually about 100,000 unemployed out of a total pop- ulation of 1.7 million, and 15,000 more jobs must be found each year just to keep the unemployment figure ,table. During the 1970's the rate of government spending in the south increase. A law passed in 1971 i,.uthorized the Cassa to spend 812.5 billion over the next 5 years, as much ononey as it had during the previous 20 years. State -owned holding companies, which are responsible for around half of Italy's in- dustrial investment, now must locate 80 of their new investment in the south. The system of incentives for attracting new industry has been everhauled, and the gove rnment hopes to attract a bread range of industry, both labor intensive and capital intensive. Life in Italy has changed trcm. ndously since the country emerged from the years of fascism and war. The "economic miracle" has almost erased the memory of the poverty crime, and runaway inflation of the early postwar years, when the main problem was to ward off starvation. The economic problems then were like those of an underdeveloped country, with one important difference� though industrially backward, Italy was culturally advanced and had a labor force of high potential waiting to be used The 19. and 1190% were the years that transformed Ital. 'I'loc annual growth in manufacturing w es in 10 most years the highest in western Europe. and Italian automobiles, industrial machinery, typewriters, appliances, chemica,s, and clothing ^ere exported all over the world. An enormous amount of building took place, and superhighways were extended from one end of the peninsula to the other. For the first time in this c�enturv, unemployment ceased to be a major problem. The sharp edge of poverty was blunted, and people began to buy things that once seemed remote luxuries. The whole feeling of Italian life changed, and even its social structure appeared to become more fluid. The growing industrialization brought southerners to the APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200080001 -6 a r The Miracle ad After (c) a 1 rte Vf S Life in Italy has changed trcm. ndously since the country emerged from the years of fascism and war. The "economic miracle" has almost erased the memory of the poverty crime, and runaway inflation of the early postwar years, when the main problem was to ward off starvation. The economic problems then were like those of an underdeveloped country, with one important difference� though industrially backward, Italy was culturally advanced and had a labor force of high potential waiting to be used The 19. and 1190% were the years that transformed Ital. 'I'loc annual growth in manufacturing w es in 10 most years the highest in western Europe. and Italian automobiles, industrial machinery, typewriters, appliances, chemica,s, and clothing ^ere exported all over the world. An enormous amount of building took place, and superhighways were extended from one end of the peninsula to the other. For the first time in this c�enturv, unemployment ceased to be a major problem. The sharp edge of poverty was blunted, and people began to buy things that once seemed remote luxuries. The whole feeling of Italian life changed, and even its social structure appeared to become more fluid. The growing industrialization brought southerners to the APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200080001 -6 APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200080001 -6 25X1 Since then work stoppages have been endemic, and a grumbling war of attrition between unions and employers has limited output. Labor trouble on such a scale damages confidence, and investment has dropped. The result has been a low growth rate that made the political and economic situation more un- stable and enhanced the polarization of the right and left. The metalworkers settlement in early 1973 was reached after months of negotiation and a loss of about 200 million man-hours-10 times more than strikes have caused in West Germany in the last dozen years. In the meantime, by 1972, nervous Italians had carried abroad nearly $5 billion in lire, rather than investing it in Italy. Italy now has become the world champion for strikes, to the extent that newspapers try to provide daily schedules showing who is striking where. Thus forewarned, a person may be able to cash a check before the bank employees go on strike, or get a train ticket to Milan if the airlines are going to strike. If the post office is striking he must send an urgent package by other means, and if employees of a government ministi v are not answering the phone today, there is no point in dialing. Strikes are supplemented by absenteeism, whirh has generally averaged about 10% in Italian industry since 1969. Under the Workers' Charter, adopted by the government in 1970, employers are not permitted to check directly on claims of sickness. Wildcat strikes and production -line sabotage in- spired by the radical left have accentuated basic dis- agreements on strategy and tactics and have frustrated the hopes of many union leaders to unify the labor movement. In order to achieve better control and con- certed action, the union leaders had planned to unite the three great labor unions in 1972, but their profound differences made it impossible; instead a loose "umbrella" confederation covering the 7.2 million workers was established. Fewer people are at work in Italy than there were a decade or two ago, and Italy's tabor force has shrunk to the point that now 35% of the population support the rest�the lowest such proportion in all the in- dustrialized countries. This figure would be nearer the normal, however, if it included the 1.5 to 2 million Italians who live and work in other European coun- tries. Thev contribute modestly to the economy by sending money home to their families; such remit- tances to Italy by workers and emigrants now average about s1 billion a year. Since 1969 the economic miracle has been almost forgotten. Higher costs and the squeeze on profits have slowed economic growth, and the real growth in GNP during 1971 was the lowest in more than 20 years. Although the recession bottomed out in 1971, the economy has been slow in regaining momentum, and unemployment was still high in the first half of 1973. Italian labor is no longer so productive or so cheap as it was, and new factories are blossoming in many coun- tries, such as Singapore, South Korea, Spain, and Taiwan, where labor costs are lower. Olivetti now produces all of its portable typewriters in Spain, and its European market for calculators is being rapidly un- dercut by cheaper Japanese models. Fiat, on the other hand, continues to do well in the European market, providing 20% of the automobiles and 30% of the earthmovers, and Fiat automobiles are being produced in factories around the world, including several in Communist countries. A good many Italians have seen Italy's future as a puzzle that might be solved through becoming part of the broader future of Europe. They have pressed for economic and political integration within the Euro- pean Communities (and the more members the better). The economic miracie of Italy did not become full blown until after they joined the Common Market in 1957, and their enlarged European market enabled the leading Italian manufacturers to expand and, in some cases, to overtake their rivals to the north. Since 1969 the chronic labor troubles have made it harder for Italian industry to compete; Italy has be L: me the weakest member of the Common Market, and the need for labor peace has become obvious to all except the radical left minorities in the unions. 12 APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200080001 -6 APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200080001 -6 25X1 routine rather than with conviction. Most of the con- cern ha% centered on the usual worry about radio activity and the harm that the base might do to the tourist trade of Sardinia. The popularity of the United States is a factor to consider in Italian politics. The people's liking for and trust in America has been a major resource for Italian politicians of the center and moderate right, who could win support by associating themselves with U.S. policies. Si:ce the late IW. 's the reporting on the war in Vietnam has made that association seem less desirable; on the other hand, a survey of Italian public opinion in 1972 showed extremely favorable reactions to President Nixon's initiatives for better relations with Peking and Moscow. In response to the question: "What country of the world is trying hardest to achieve peace the United States was far in the lead, being cited by 36 Italians have for the most part become inter- nationalists. Informed opinion strongly supports Euro- pean integration, which appeals to Ihith Catholic and Socialist traditions. Even the leaders of the Italian Communist Party have swung around to acceptance of Italian membership in the European Communities (EC) and have worked to rally leftist groups of Eastern and Western Europe behind a policy of recognizing the EC's reality and strength. Italy also belongs to a number of international organizations: the Organiza- tion for Economic Cooperation and Development, the General Agreement of Tariffs and Trade, the Inter- national Bank for Reconstruction and Development, the International Monetary Fund, and the United Nations. Soviet vetoes kept Italy Hitler's ally in World War 11 �out of the United Nations until 1955, but since then Italy has been a full and active member. In 1972 the Foreign Ministry announced Italy's desire for a permanent seat on the U.N. Security Council, claiming that it would help reduce the disparity between the nuclear and non nuclear powers. The old pursuit of international status has not en- tirely disappeared. In part, Italian diplomacy reflects a preoccupation with making an impression and win- ning respect and, in part, a natural desire to be in- formed and consulted, to be on the inside. The govern- ment particularly resents the formation of councils in NATO or on Middle Eastern affairs that include the United Kingdom and France but exclude Italy. Italy consistently supported the British efforts to join the Common Market, and after British entry into the EC in 197L' the two nations united in advocating a more effective policy of assistance to the EC's own backward regions. As the country with most to gain from such a policy, Italy had long sounded this theme with little success, and in the United Kingdom it has apparently gained an important ally. In spite of bilateral alignments of this sort, however, Italy will probably continue in the forefront of those advocating more rapid progress toward European political union. Italy's strong bias toward union is accompanied by a remarkable lack of interest in what is going o,i in Brussels, the European capital. Italian newspapers, ex- cept for a few in the industrial north, print very little about official activities or decisions there. Even the Italian respresentatives to meetings at Brussels seem to share this attitude; Signor Beniamino Olivi, who has been Spokesman (press officer) of the Commission at Brussels for more than a decade, has said, "It is notorious in Brussels that the Italians are the ones who know least about the questions being discussed." Italy has frequently failed to honor her obligations to the Common Market, and has been summoned before the Court of justice more times than any other nation. The relative political importance of Common Market af- fairs in Italy is shown by the action of Signor Malfatti, who in 1972 resigned the position of President of the Commission to be a back -bench Deputy in Rome position more important for his political career than the highest executive post in Brussels. Italy is the weakest bureaucratic link in the Com- mon Market, and observers suspect that the country may miss out on many future benefits, such as aid to the south, simply by failing to meet ordinary ad- ministrative deadlines. This has happened in the past, as Signor Olivi has pointed out: "One of the great, historic mistakes made by Italy in the last decade was that of underestimating the fact that the Common Agricultural Policy, to have beneficial effcctL, requires immediate administrative processes in its implemen- tation." As these were neglected, "Italian participa- tion in the EEC's agricultural policy can be dr cribed as an accounting disaster." C 14 APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200080001 -6 0 IC LJ No country in Europe has changed more swiftly and more radically than Italy has since World War 11. Twently years ago a factory worker from Milan who went to southern Italy on his honeymoon could not understand either the dialect or the customs and felt more a stranger there than he would have in France or Switzerland. Since then Italy has become v mobile society, mixing people, habits, and dialects in a vast and tumultuous flow; and as important as the new mobilitv has beer Television, which has taught almost everyone the same language. Century -old differences are being rubbed away; but a profit- and -loss account of this vastly changed Italy �with 12 million cars on its roads and 11 million television sets in its houses, with disrupted cities and with some of the most polluted urban air and foulest rivers to be found anvw`uere on earth �would he hard to audit. Wi'h the rapid Chang- has come an awareness of in- ertial forces hindering efficient functioning of the society, and there is a growing tendency to blame the government bureaucracy for the troubles of Italy. But the real blame lies beyond the bureaucracy, which only reflects the Italian conception of government by personal favor. Many civil servants owe their first lovalty to an influential friend, and favors are reciprocal. This is the basis of the enormous sub political underworld known as the sottogoverno. The system as a whole satisfies nobody, but each hart of it is advantageous to some individual or group. Attempts at reform come into conflict with deeply entrenched interests determined to preserve their particular status (1uo. Inertia, too, sometimes seems a major characteristic of Italy's ancient, crowded, poorly equipped and in- adequately staffed universities. Geared since the T3th century to turn out an intellectual elite �in the fields of philosophy, law, literature, history, and religion �they cannot much longer satisfy the in- creasing demands of a technologically based economy. The government has proposed a number of reforms to do away with the weakness of the higher educational system, but their passage would not by itself insure rapid and dramatic improvement. Even if enough money were spent, the physical expansion of educational facilities will require decades, and the en- crusted academic hierarchies �the professors �con- tinue to fight any change that would diminish their privileged status. Italy's constiutiou is one of the most advanced and liberal in the world �but it exists somewhat apart from everyday life. Many laws and regulati )ns that would embody its principles have never been implemented, and instead the Italian citizen continues to live under restrictive laws and regulations, from Mussolini and before, that have never been rescinded. The Italian way is to get around the laws, and the law enforcers are usually willing to help or pretend not to have noticed so long as the person concerned does not claim any legal rights. Individual citizens are not entitled appeal to the Constitutional Court which rules on 'he constitutionality of laws. As a whole, and thanks to the intelligence and good nature of the peoplr, the organization of Italian life works; but many tarts, particularly the public ad- ministration and the edTcational institutions, do not work well. The pessimistic observer is likely to wonder if, as the problems of the society become more com- plex, where will ever be enough determination, wisdom, and public spirit particularly in Rome �to make it work much better. How to transform the Italians' method of governing themselves into an effective vehicle for change is it critical question today. 0 15 APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200080001 -6 Chronology (u /ou) 1300 U')50 Hemus,:uo�e verb 1n vu .-states 41f r ,rthern Irdy: it set, up for flit- n(tdern age the )(teal of the noun talented ma u. scntbolized 11 the matchless Leonardo da \'invi. Gnat artt,uc :lard intelleetu:u outpouring starting Kith the IIth venture preeunnrs I;nttto archit vet sculptor, painter an(I I'm rareIt humanist writer, ;uoi ssentially culminating with Da rnvi. Michaelarigelo painter, architect, poet lalestrina vontposer. and Machi:nr111 pohli-al philosopher 1550- 1795 \\tth the conquest of the flourt,hing rite- sL'atr, of the north I,. the Ilody Homan Empire and Prance, all Ital) hrought under foreign do tit inatton. \onetheless, rultit rc flower* renarkabh tit 17th and IStIt centuries. 1796 11411 Napoleonic armies bring Ital under vontrol 41f Frenvh Empire. and arious enlightened reforms are introduced. espectall) ut law and goI administration. If41 IV- 181h Italy rnainII, under .\ustri:ut dorttinittion niter (',Ingress of Norma reimposes rule of the old ra�gintcs. .\h ogatiou of liberal Napoleonic reforms it( ontpanu�d h allusive repression sharks frt.vor,/,on, ttto, titocentent for Italian liberation, reform, and national unificalion 1KIK -1870 He)olm of 1144 falls throughout Italy', hilt e,tnhlish ^s I'trdnim tcs,� leadership of the R, ""'I?"u nth, KIrlgfl unl of Ital proclaimed at Torino tit I+uii. tit lX70, Hone was I irial]% seized font the Pupae) and made the national (-:t1),'al. 1871 -191 Kingdom of Italy' ehntaeterized by continued neelert of the nnpoccrl.hed south. inabtlit) to de(elop it eiahlr t-conoutic base, failure to bring hulk of population into national hfc In 1XXWs only ahout 10 of adult males eligible to vote a, co lit pan�d to 25 in the I toted Kingdom and nearle I of) in France: in 1911 half of population still illnvrarh�. In 1111 period, over 1 ,0(I,I)01) Italians nearly ore-fifth of no�:ut population) ernigrate, prinvipally to North and South tit eriva. bec:utse of Italy's serious1 lagging eeononnc development Ix92 -1x93 fears of widespread gorrtrna1rnt corruption It ighliKhted I I 11aitk of Ho lit sc:ut (Ili l. tit which the hank directoo 'Ton longo, Issued millions tit dup11vaI hit it notes but won it vglnttal to court niter incolvntg numerous editors it it officials in,�luding even Prime \Minister (:iolitti, Tonlongo's acquittal greatly offends public opinion. Ixy6 Effort to conquer Ell limpia Italy's most ambitious u11 116entore ands in disaster at \dowa will. 7,111111 killed oat 4-f the 10,0041-milt Italum force. 16 1915 May Italy deelares war on Austria Hungary and German), its former allies, having announeed its neutrality in August 1411 and subsequent) bargained with both sides for territorial gains: 11 etio11 pnhliel) justified in terms of Ital 's sarro vo+.wnn or national self interest. 1917 October December Italy suffers disastrous defeat at ('aporetto, losing 31111,000 prisoners and another 31111,0011 (1vserters: AitsIro- Germ :ut forces ad)anee to Piave Hi%vr. 1919 June October BY peace treaties of Itersaille> .(nd Saint- Germain hill.\ it(-- quires South 'I'crol with 250,00%; ethnic Germnns', Istria, Trieste, Gomm. and part of the Dalmatian Coast about 11,000 square miles with a population of 1.600,1100 Itaah' also gets share of German war reparations and heeones ntetnber of 1�: \ecuti)e Council of the League of Nations. Roth government and public opinion dissatisfied with such "spoils" front a war in which ;60.000 were killed and 417,000 wounded. November Pint national election with universal manhood suffrago: Socialists secure largest number of legislative se:us. 1922 October March on Home i2S (lctober b) tit(- Fascists and hegin- tting of 21 -)ear dictatorship: Mussolini forms ca hi net of Fascists and Nationalists 1921 June Murder of in luential Socialist Depute Gtaronm Matteotti h) the Fasetsts. 1929 February Mussolini signs the Lateran fact %,tit the Papacy on II February, creating \:mean (tit.\ as an independent state Concordat regulates activities of the Honnan (':ttholie ('hurvh in Italy' and government pays the 11411) See large indemnity. 1931 1 nity -of -act ton pnct het wren t-\ilod Sorinlists and l'ont- nutrusts. 1935 -1 936 0clober -May Italy conquers and :urtn\es Fthotpia, despily economic wuu�tions imposed h) League of \:lions i APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200080001 -6 X 1937 November- December Italy joins German- Japanese anti- Comintern pact; w�ith draw�s from the League of Nations on 11 December. 1940 June Italy declares war on France and the Vnited Kingdom on 10 .tune. 1943 July Mussolini ousted following Allied invasion of Italy; Radoglio heads first post Fascist government. 1914 Jane Rome lihera,ed by the Allies; Socialists and Communists reaffirm 14-34 unity -of- action pact. 1945 May World War 11 ends in Europe. December Christian Democrat De Gasppri ,succeeds Parri as Prime Minister and holds office until 1!1.o)& 1946 June Popular referendum votes to end monarchy; Constituent Assembly elected to write new constitution establishing a republic. 1947 February Peace treaty is signed with Allies and Soviet bloc; Saragat's group splits away from Socialist Party in protest against Communist domination and forms Social Democratic Party; Communists and Socialists ousted from cabinet. December Constitution approved by Parliament. 1948 April National elections: Christian Democrats win parliamentary majority. 1953 June National elections Christian Dem majority. ocrats lose parliamentary 1967 July First 5 -year 11966 70) plan for national economic develop- ment becomes law. 1954 October Allied Military Governmert ends. 1955 October Italy joins United Nation 1957 January Socialists end unity -of- action pact with Communists. February Italy ratifies European Economic Community (EEC) treaty 1960 April Christian Democrats form neo- Fascist- supported govern- ment. July Cabinet overthrown b popular anti- Fascist demonstrations. 1962 February Fanfani government initiates opening to the left (cooperation with the Socialists). 1963 Jane Government crisis, following Christian Democratic and Socialist losses. Communists gain in April national elections. December Coalition government former! under Christian Democratic Prime Minister Aldo Moro, including Socialist ministers for first time since 1947. 1964 December Social Democratic Saragat elected President. 1965 March Cabinet reshuffle. Moro continues as Prime Minister, Pietro Nenni as Vice Prime Minister, Fanfani becomes Foreign Minister. 1966 February Christian Democratic Social Democratic- Socia list- Republi- can coalition with Moro as Prime Minister sworn in on 24 February. October Social Democratic and Socialist Parties reunified on 30 October. 1968 May National parliamentary elections of 19 and 20 May result in significant Socialist losses and temporary withdrawal of S Wi'Jists from coalition. IN APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200080001 -6 I 0 TO IL- rII I MA, 5e June \finonty Christian Democratic government of Giovanni Leone sworn in on 28 .tune. December Christian socialist Republican coalition with Mariann Rumor as Prime \linister sworn in on 13 December. 1969 February Italian Communist Party 12th Congress maintains censure of soviet intervention ;n Czechoslovakia. March Communists included among delegates sent to session of European ('onamunities parliament. July New split in socialist Party, partly over attitude toward ('ornrnunists, results in fall of Rumor government. August \linority Christian Democratic government formed under Rumor on b August, after efforts to reconstitute center -left government fail. 1970 March \larinno Rumor hecotnes Prime Minister on 21, \larch and i forms coalition government of Christian Democrats, So Isis. and Republicans. July Prime \linister Rumor resigns on ti July. August I- ;n:ilio ('olon:ho beeowes Prinu� \1inister nn ti \ugust :uu! forms coalition government of ('hristinn Democrats, sorual- ists, social Dernocnats. and Republicans. November Italy recognizes the People's Republic of ('iaina. 1971 October Parliament passes Mezzogiorno Development Rill, allotting funds for development of industry in the south. IK December Giovanni Leone, it moderate Christian Democrat, succeeds Giuseppe saragat as President, after the longest presidentia' election in the histor of the republic. 1972 January Prime \linister Colomho resigns on IFi ,lanuary after it split in the coalition government. February Giulio Andreotti becomes Priam Minister on Is rebrtuary and Christian Demoeraus form a caretaker government. April Transfer of national civil servants .o regional level gives 15 ordenarc regions it share of administrative authority. May Early parliamentary elections held ft r first time in the history of the postwar republic. The most notable change is an in- erease in support for the extnmte r.ght. June Centrist coalition government formed under Andreniti in- cludes Christian Democrats, social Democrats, and Liherai with support in Parliament from Republican�. "Phis coalition returned the Liberals to the government for the first time since 1957. 1973 March Itch� estahhshes relations with North Vietnam. June ('hnsti:u. Democrats in national Imrtc congress call for revival of center -left eoalition: Andreotti resigns as Prime \linister on 12 .tune. July Mariano Rumor becomes Prime Minister for the fourth time on Y Jul and forms center -le i coalition government of ('hristian Dennur;us, socialists, social Democrats, and Republir,ams. Government issues emerkeney decree I:nv to comhat inflation. August 1s a member of t he ('onference of the ('otentitte'e on Disarnaa- n:ent. Italy participates in talks preparatory' to the European security Conference r, Geneva. APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200080001 -6 Co-'r mf:N %1 0 0 It Area Brief LAND (UlOU): Size: I Ifi,31M1 sq. rai. Use: 50 rultiyated. 17 Ineadow and pasture, 21 forest, 3 unused but potentially produrtne, 9 waste or urban 1970 Land boundaries: I,0:5s mi. WATER (U1OU): Limits of territorial waters (claimed): 11 n. mi. fishing, 12 a. vii. Coastline: 3,105 mi. PEOPLE (UIOU): Population: 51,:58x,000 )estin"ated df jurr population as of 1 .tali 197:3; density 168 persons per square mile; 52"., lice in cousin nines of 20,000 or more inhabitants Ethnic divisions: Over 99 Italian, with Small German French and Slovene- Italian communities Language: Over 99" speak Italian as native tongue; Ger"aan- speaking communit in Bolzano Province is largest minority; Sri dl Slovene- speaking group in Friuli Venezia Giulia Region; small hat significant French speaking minority in Valle WAosta Region Religion: Over 9!0., nominally Roman Catholic: Protestants. about 300,0001 .Iews, approximatelY 111,000 L iteracy: 9.5" of the population age 6 and over t 11172 e..timatel Labor force: 18,831,11011 (January 197:3; 16% agriculture, 12% industrrv, 38% other' 1 unemployed: underemploy- ment, particularly in southern Italy, remains widespread, estimated (mid 197'21 2311,000 temporary emigrants working abroad: 1.5 million Italians employer) 0i other Western European countries Organized labor: Approxirnntely 30"-, of the labor force 1971 GOVERNMENT (UlOU): Republic, hivrmivral Parliament, ;ahinet responsibl.� to Parliament I niversal suffrage: multiparty pohteal vstrm nstable governing coalitions 21) regions, 91 provinces; centralh' appointor) prefects ('nnrnunist party memhership, ahont 1 5 million \Iwnher of 1 .N. and GATT 114131), and 1\11-'. and of 011:('U, NATO, EEC E('S( and El RA \I ECONOMV (UlOU): GNP: $118.13 billion !1972). $2,I14x per capita; 63.6 voo- suinption. 211.9"� investment. 13.7 '4, government, net foreign balance 1.8 (1971 provisional); 1972 growth rate 3.2 11163 votastant prices (converted at 581.5 lira I'S$I Agriculture: Important producer of fruils and vegetables; main crops ..seals, potatoes, olives; !IS"., self sufficient: food shortages fats, meal, fish, and eggs; calorie intake, 3,11111 calories per capita (197111 Fishing: ('ateh 391,211) metric tons V71 $196. 58x,Ooo in landings 191111); exports $22 million 11!172), imports %12x mullion .1972,; converted at .ixl.3 lira I S$I Maje! industries: \lachinery and transportation equipment, iron and steel, chemicals, fond prmessing, textiles Shortages: Coal. fuels, minerals Crude steel: I6.7 million metric tons produced 1972 30.s kilograms per capita Electric power: :37 �nillion kw. capacity' .1972); 12,s hdlio kw. -hr. produced 11972), 2,:362 krl. -hr. per Galata Exports: '=18.13 hillion (f.o.b.. 1972: converted at :5x1.5 lira S$U; principal items: machinery and transport equipment, textiles, footwear, foodstuffs, chemicals Imports: $19.3 hillion (e.i.f., 1972: converted at 551.5 lira 1'S$I principal items: machinery and transport equipment; foodstuffs, ferrous and nonferrous metals. wool, cotton, petroleum Major trade partners: i 197'21 22"" West Germ:,ny. 9 U.S., 15" France, V 1'.K.,' 1% Belgium- Luxenthourg. 5"., Netherlands, :3"'" Switzerland: 1:5 EC; 12 I {P'1'.1; sh oo USSR and Communist countries of Eastern Europe Aid: Economic U.S., $3,986.6 million (FV46 :'2), $22.:3 million authorized F,'72; 113H1), $39x+ million authorized through FV72, none since FV65; International Finance Corpora- tion, $1 million authorized through FV72, none since FY60 \lilitary U.S., ?,179..5 million )FY16 72), 162 million authorized in FV6S (Export- Import Hank ereditsi, none since 11168 Monetary conversio.v rate: ('onrnercia' and finnneiul lira floating; value on :30 \larch 1973: 1 eomouscial lira I SS0.1696; 1 financial lira l S$0.1 20 Fiscal year: Calendar Year COMMUNICATIONS (C): Railroads: 12,688 route miles. 10,11115 route miles f1 !1111 standard gage, 1,927 electrified: 9:5 narrow gage) owned by Italian Government. 2,68:3 route miles 11,392 standard gage, 696 electrified; 1,2111 narrow gage, 3x7 electrified� owned by municipalities or private companies Highways: 179,000 miles. Auloxtradc :3,111x1, state highways 25,750, provincial highways :57,IM10, communal highways 93,2:511. 159,M0 miles concrete, hitunten, or stone hlock: 15,:5110 miles gravel and crushed stone; 1,:51x1 miles earth roads Inland waterways: 1,:538 miles navigable: 702 miles are rivers, 5211 are canals, :307 me lake routes Pipelines: 1,100 miles crude oil, 91x1 miles refined pei oleum Prod" 's, 6,000 miles natural gas lines Ports: Ili major and 22 significant minor poris Merchant marine: 1119 ships of 1,001 g,r.t and over, totaling 7,11117,582 g.r.t. or 11,2511,2115 d.w.t Civil air: 1:38 major transport aircraft Airfields: 150 usable: 80 have pernuruvtt- surface nmways; 2 have runwnys over 12.(ilxl feet. 25 have runw'ays 8,000 11,999 feet, 17 have rum 1,000 7,999 feet. 711 sites, I I seaplane stalions Telecommunications: Modern, efficient s%�stcm; almost 111.8 mill �,,n telephone.., 1'2.11 million radio, 10.85 million T% reeeiyers; 86 A%1, 5511 F \I, 8.5:5 '1' stations; 11 coaxial, 11 submarine cables; 3 communication satellite ground stations 19 x APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200080001 -6 Places and features referred to in this General Survey (u.ou) ('noN nl \1Tl:M I '1�IX nI \tii APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200080001 -6 o I a /E 1 It Abruzzi ladmin 42 1:, 1:3 4.5 Ga1IPrm d,�1 AppPnnom h1 r, n,l 11 113 11 I I Adda (arm 4 5 ON 9 .53 Garlghano "rIrm 41 1:3 13 i5 P-t,. l �nil� 11 :'n 12 17 Agrigrntn 37 27 1:3 30 GPIs.. :37 nl 14 I5 f to dl IId I� 1., 21, 1_ AiRIP, Fwltz.rland. 44i 19 ti SN GPnue.. 71 25 57 Porto dl N.Ixu�n, �J,r 1', _u 12 211 .w Ajarrio, Cora 41 55 N 44 G,�nn enova. 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I:1 I Hwearl. 11 21 15 11 Latina pror' 11 27 I:t �I,, dr HnrK "11.11 1 Hivlo d'.1url Mina I rr On l I." 15 1:3 :39 LNIJna 11 2 12 I_ sm'la ikla� it'. 111 0l Bologna 11 29 11 20 1�lo '"din- 12 INI 12 30 ..l nlrgua n.lmnl In un Hning�Ia I(Ir/Ir� 14 2N I I 213 I,P ('aMPnr 13 11, Fardon:1 III 111 1111 1 IMI Bologna ('rot ral, tr xln' 14 :ill 11 21 LPrrr lu 23 1 II In 14 ;1 Bolzano Ip"o ill 1:1 11 :31) 1 13 I\ 111 \H..:Irl I "1 111 III 1 1111 Halznno IK ;I II I,rrrO 1:, I1 9 13 xl..nn i I1 I I,. Bnrgo Pla". 11 29 12 52 Llgnnn admtn' 11 :311 111 Ful ono 11 I;