Ext 6116/46(S) 'Secret Weekly Political Intelligence Summaries, nos 356-416, August 1946-November 1947' [‎8r] (15/978)

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Australia, New Zealand, the Union of
South Africa and all states of North and
South America.
It is reported that the Swiss Government
has decided to abolish the restrictions of
March 1945 on the import and export of
foreign bank-notes.
ITALY
Count Sforza, the Italian Foreign
Minister, left London for Rome on the 1st
November on the conclusion of his official
visit during the course of which he had a
general exchange of views with Mr. Bevin.
The official communique stressed that the
visit marked a new stage in the relations
between Great Britain and Italy and had
served to emphasise and strengthen the
renewed bonds of traditional friendship
between the two countries. It went on to
state that the two Foreign Ministers had
found themselves in close agreement in
their discussions on international affairs in
general, and had declared their intention
of continuing their collaboration for the
recovery of Europe and for the mainten
ance of international peace.
Agreement was reached on the following
points :—
1. A new Treaty of Commerce and Navi
gation should be negotiated to replace that
of 1883.
2. The Anglo-Italian Standing Economic
Committee should be given wider scope to
serve in the future for the consideration
of all economic and financial matters of
common concern.
3. An Anglo-Italian Cultural Conven
tion should be negotiated.
4. A Civil Aviation Agreement should
be negotiated to cover air services on a
basis of reciprocity between the two
countries.
It was also agreed that, assuming the
United Kingdom is able to resume coal
exports after April 1948, as envisaged in
the report of the Committee of European
Economic Co-operation, Italy will receive a
share of such exports.
Finally it was announced that:
<c Desiring to assist Italian and general
European recovery, and having taken into
account the steps which have and are being
taken in that direction, H.M.G. have
decided that the naval vessels allocated to
them under the Peace Treaty and the Four-
Power Naval Protocol of the 10th
February, 1947, with the exception of a
few minor vessels, shall be left in the
possession of the Italian Government to be
dealt with in accordance with Article 2 (b)
of the Naval Protocol which provides for
certain categories of vessels to be scrapped
or sunk.”
The question of the ex-Italian Colonies
was raised by the Italian Delegation and a
request was made for certain concessions in
the interest of Italian nationals and
Italian trade. Mr. Bevin undertook to
raise the points with the military adminis
tration. It was realised that the question
of the final disposal of the territories could
not be discussed as the matter was still
sub judice.
The results of the conversations were
featured prominently in the Italian Press
and wdth one or two exceptions have been
well received.
The greatest satisfaction will be felt in
Italy at H.M.G.’s decision to renounce the
share of the Italian fleet allotted to them
by the Treaty of Peace with Italy. This is
all the more important as the U.S. Govern
ment have already renounced their share.
It has long been felt in Italy that the co
belligerent services of the Italian Navy
have not been adequately recognised by
Great Britain, and there has been wide
spread public resentment over the naval
clauses of the Peace Treaty. Moderate
and nationalist opinion has been inflamed
during recent months over the impending
fate of the battleship Vittorio Veneto,
named after the Italian victory in the
First World War, and of special senti
mental importance to the Italian public.
Had Great Britain not renounced her right
to the vessels in question a chronic sore
would have remained to embitter Anglo-
Italian relations for a long time to come.
SOUTH-EASTERN EUROPE
Hungary
The Bill establishing Workers’ Courts to
deal with speculators and black market
offenders, which was passed on the 24th
October, places wide powers in the hands
of the Communists and Social Democrats.
As it is proposed that only employees of
undertakings with staffs of over 2,000 in
the large, and 500 in the small, towns
should be eligible to serve on the tribunals,
the vast majority of those appointed will
belong to one or other of the workers’
parties. For this reason the Bill was
criticized not only by the Opposition but
also by representatives of the Smallholders
and National Peasants. Members of the