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December 19, 2016
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June 1, 2000
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June 15, 1955
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.Approved For Release 2006/11105 :CIA-RDP79T00937A000400010020-5 state Dept. declassification release i nstructi ons on fi le CENTRAL INTELLIGENCE AGENCY OFFICE OF NATIONAL ESTZDdk-TES 15 June 55 Internal O/NE Distribution Only STAFF )U~116ORANDUM No 0 2,~~~ SUEJECTs Debriefing of Ambassador Luce ~, o On 9 June lq ~ j~ of 0 attended a debriefing of Ambassador Luae at the tats apartment. his memor~ andum is a summary of certain of her remarks. 20 Status of Forces Agreement, Ambassador Luce attributed the delay in parliamentary approval of the SOF agreement to such factors asp (a) general resistance of Italian government leaders to pushing legislation regarded as pro?US for fear of being called "US stoogesn9 (b) the Italian desire to retain a gaud bargaining counter vis~~vi.s the USg and (c) a possible reluctance to raise a matter in Parl3.ament xhich xas likely to provoke a strong Communist reactions 3a According to Ambassadoz? Luce, the ~,uestion is becoming acute 'because of the problem of redeploying US forces Hour in Austria. Thus far the Pentagon has maintained that passage of SOF legislation b9' Italy should be a precondition to redeployment of such US forces to Italy. She believed that the US noW needed to apply no pressure for sppraval of SOF ether than through this potential redeplaymento Nith US farces out of Austria, the large US military establishment at Leghorn, xhich xas primarily designed to serve as a US line of commun? icatian to Austria, xould have little reason for existanceQ In the final analysis, the Italians far both economic and security reasons would probably prefer to have more rather than fexer US traaps in Italy. She thought, therefore, that following a clarification of the goverxamental situation durimg the next fe~rxeeks, the Chamber of Deputise xould probably pass the SOF legislation already approved b9 the Italian Senate, or~c~-M~NO. ~ L - NA CWAFIGE IN CLASS. R1 (. ~ pECUS6i~l~d CLASS. CHANQED TO: TS S NEXT REVIEW pAtE: l~ - r~vrW; ++R 70.2 ~ ~ S Approved Far Release 2006/11105 :CIA-RDP79T00937A000400010020-5 Approved For Release 2006i11J05:CIA-RDP79T00937A000400010020-5 1a. Neutralism. Ambassador Luce remarked that 104 percent of Italians axe probably "neutrality-minded", in that they mould prefer not to get involved in any struggle between the great powers. Haw~ever, that dose not necessarily indicate that a very high percentage of Italians think that neutrality is possible. she one third which is left~axianted could probably fallow the Communist line if it preached neutrality; another third might be inclined to follrnr a strong leader an this issue. But the real queat3.on is whether Italian leaders are neutra].ity~indad. At present these leaders seem to consider neutrality a gams with which they can trifle, probably hoping to worry the tIS a bit, Fet two basis conditions fox maintaining neutrality success fully are not present in Ttalya the defense capabilities of Italy are not sufficiently great; and Italyea internal stability is uar~duly limited with about one third of its electorate substantially s~mpa? thizing with many policies of the ~remlino As a result, Italian leaders probably regard it iaapasaible to follow a policy of .neutralism without in turn being "neutra.7.izad" and eventually dropping behind the Iron Curtain. 5o Ito, ~ CCommunist Party (PCB. At the present time Italian Canmuniats are in a gh~~y can used state of mind, due at least in part to these faetarsa (a) the Trieste problem, final resolution of ~ehieh required the PCI to ~hrhirl like a dareiah"; (b) the Soviet mission to elgrade; (c) Togliatti~a health (according to Ambassador Luceea bast information, his recant attack v~s-s a cerebral hemorrhage, "unfortunately not fatal") whioh may presage a power struggle ~r3.thin the P'CI; (d) the PCT?s lass of prestige as ~ result of the victories of free unions in certain plant elections (eog, Fiat); (e) some lase of appeal to young people because the ~'CI has bean assuming less of a revolutionary character than in the past; and (f) the effect on morale of the Kremliaoe overtures to Adanauer, a figure ao often castigated by the PCI. 6-mbassador Luce thought that, under these circumstances, a new intelligence estimate on the intemtiona and capabilities of the Italian Caanmuniata would be particularly usafulo 6. Cffehore Procurementq The US ~nbaeay had based its antib Communist caaupa gn in taly at least partially an the 4rithholding of tlS defense contracts from Italian plants until the pa"ner of the Co~omunist-dominated Ct~TI+ in those plants had been brokeno ~rhia policy had been predicated, ha~rever, on the assumption that the offshore procurement program would be continued by the USo Hut as a result of the recent curtailment in US offshara procurement, leas contracts Approved For Release 2006J11J05:CIA-RDP79T00937A000400010020-5 Approved For Release.2006i11J05 :CIA-RDP79T00937A000400010020-5 being allotted to Italy, the situation is somewhat difficult. .Naar, after many plants have been "cleansed'" of CQiIL dominance mater of the "pure" arorkars remaining may have to be fired because of a lack of ardears for the planto ?o Triastea The Italians have done little to remedy the economic crisis in rid estea, and, in general, seem to have handled the situation poorly. Probably the Italians believe the ideal solution would be "for me to call on ldre Humphrey"o $a Italian Political. 53.tuation. In the course of a conversation with her, talian assador Hrosio had expressed the hope that the coalition can stay together. Hae~ever, it would be more difficult now as the Christian Democratic gains in the Sicilian elections were made to a considerable extent at the expense of the sma11 parties who belong to the aoaaitiano Hrosio thought that he would in canacience have to resign if the CD"s moved to the left before Nenni made a clean break with the Ca~unists, including a public renunciation of the Nenni Socia- lists" unity of cation pant frith the PCIo q, pne possible formula for the composition of a new governments which ~nbassador Line believed might lend. more stability to the poli- tical situation, would be a coalition of CD?s with the Monarchists and Liberals. The other center parties in the present aoa].ition might then go into a "loyal opposition" and any leakage of votes from the center grouping presumably would go to them rather than to the Nen~. Socialists or PCTo It had been suggested also that this arrangement might not be so ab~ectionable to center parties remaining out of the neR coalition since, in times such a govertmterrt coalition of the CD"s with the right might be able to '"take care" of the Casmtiunists and their allies after which the stage would be set for a moderate left oriented govern? menta 10, Ambassador Yvice ventured that such aright-oriented govern- ment probably would not be as catastrophic as many people ims~gined. It would be better than a CII "manocolore" government trying to pick up votes "like a floating kidney". Tn feat, the CD"s probably oould not govern long without a firm coalition with the right or left and the logic of events is leading them to a choice4 Such a right oriented gavernment might isolate the Neo-Fascists, wane going to the PCI and others "respectable", She noted, incidentally, that an Fanbassy - 3 -~ Approved For Release 2006J11J05:CIA-RDP79T00937A000400010020-5 Approved For Release 2006/11105 :CIA-RDP79T00937A000400010020-5 tabulation of parliaments-ry noting had disclosed that the Monarchists and Neo~asaiste had supported virtually all legislation of particular importance to the ifi3. ll, The sawn center parties Rill probably continue to etRindln in strength and influence as long as they remain within the coalition4 chile Rithin the coalition they must abandon their oen position on cerm fain issues and also awy suffer some~rhat from being aligned Kith the CD's, since many people associate that party Kith "clericalism". Thus, to continue to exist, they may have to leava the coalitiorY and go into opposition to the CD's. 12? as an interesting sidel3.ght, ~nbassador Luce referred brief],y to amnahi, the nearly-elected President of Italy. In the wake of much 25X6 speculation about his leanings to the left and only three days after a speech in which he suggested, in effect, that labor Ras se o poser. he disnatahed an intermediar5r to the US Embassva Approved Far Release 2006/11105 :CIA-RDP79T00937A000400010020-5