INCOMING TELEGRAM •epartment ofSta• COMFID2~~'t'f IAL 54 Control: 1846.3 Action Rec'd: April 22 51 1964 EUR 3~47 P.M. FROM: Madrid Info SS ACTION: Secstate 1842 G SP INFO: Rome 38 L Bonn Unnumbered H Brussels Unnumbered STR London Unnumbe.red E Luxembourg Unnumbered AID Paris Unnumbered p The Hague Unnumbered USIA NSC DATE: April 22~ 7 p.m. INR CIA NSA Spanish attitude towards Italian position on Spanish relations OSD with Common K~rket is indeed one of exasper.2tion as indicated ARMY Rome's 2789 t o Department (repeated ~1~drid as 67) o 'This most NA ~y recently borr.J.te out in Embassy discusGion wi th Director General AIR Political Affairs Foreign Office {:~mbassy telegram 1819). Sedo CEA at that time did not rule out reprisals of typ~ indicated Rome's COM 2789 and we have heard from number of 8ources of Spani sh intent TRSY proceed against Italian business interests in Spain which are RMR doubtless much greater than similar Sp2nish interests in Italy. Certainly Italians according Auh2asador Fracassi here becoming increasingly isolated in Sp~nish scen.1e • . W~ are not in position judge wh;;:..th.~r Spa~ish pressure t~ctics likely be successful:!) though }'i.Elf2tti p~sition app-~,8rs ,already somewhat softer than th.~t il:Ztke·~i. by Italian"'' in Bl.~ssels41 However5> intense and ap·pnrently growing reG~ntnent exists of le.ading role which Italy tflking in opposing -·p'8in on what Fo!"eign Minister regards as the one major outsta.n.d'i .:-g issue in Spanish Foreign policy (Embassy telegram 1819). lt quite cl~az Spanich would like US cupport in thzir quarrel / ·1 ·th Italy REPRODUCTION FROM THIS COPY IS GONF!DE!q'JLI..'\L PROHIBITED UNLESS "UNCLASSIFIED" DECLASSIFIED E.0. 13292. ~..,ec. 3.4 s ate Dept. Guideli'les u BY-f--•NARA, Dato!2-//a·O~ CONFIDENTIAL -2-1842, April 22, 7 p.m. from Madrid with Italy and BENELUX Countries and Foreign Minister may conceivably request our aid in conversation April 23 with Secretary. However, it also clear it would be resented here if we were to intercede on behalf Italians along lines suggested by Malfatti paragraph 2 Rome's 2789. In conclusion we would strongly re­commend strict neutrality this particular problem in Spanish­Italian relations. GP-4 WOODWARD CMR/10 CO "iIDENTIAL -­