CHANCERIESTHE DIPLOMATIC ATLAS

Italy and the United States Sign the Economic Cooperation Agreement

1948-06-28

Italy emerged from the Second World War after defeat, occupation, and the collapse of Fascist rule. The republic that replaced the monarchy in 1946 faced the task of rebuilding its economy and political institutions. The strength of the Italian Communist Party made the country's direction a matter of international concern. [1] [2] [3]

Carlo Sforza and American ambassador James Dunn signed an Economic Cooperation Agreement in Rome on 28 June 1948. It took effect that day. The agreement gave Italy a bilateral framework for receiving assistance through the European Recovery Program, better known as the Marshall Plan. [4] [6]

Three years after the war, European economies still lacked the resources for a secure recovery. Damaged production and the severe winter of 1946–1947 had sharpened shortages. George Marshall proposed a coordinated rebuilding program in June 1947, and Congress approved its funding the following spring. Washington linked recovery to political stability and to limiting Communist influence. [3]

Aid came with practical obligations. For supplies received as grants, Italy had to deposit an equivalent sum in lire in a special Bank of Italy account. The governments would agree how the remaining money should be used after administrative and transport costs, including spending on production or reducing public debt. Reconstruction therefore involved decisions over Italian funds as well as the arrival of American goods. [5]

Italy joined NATO in 1949, the year after it signed the Economic Cooperation Agreement. [4] [5] [2]

Related Diplomats

  1. Alberto Tarchiani [7] [8] [9]

Sources

  1. Ascanio Colonna — mission record (1938–1941)

    Pre-unification consulates and legations; moves to Florence and Rome; 1941 rupture and 1944 restoration

  2. Italy and NATO

    Italy's Mediterranean position, 1948 election, political debate, and Carlo Sforza

  3. Marshall Plan, 1948 — Office of the Historian

    Origins, congressional funding, and European recovery

  4. Economic Cooperation Agreement with Italy — FRUS editorial note, document 544

    Signature, entry into force, and September–October amendments

  5. Economic Cooperation Agreement — English treaty text, UNTS 20

    Article IV, paragraphs 2–6, pages 52–56

  6. Economic Cooperation Agreement: United States and Italy — UN treaty registration

    UNTS 20, no. 314; signature and entry into force

  7. Previous Italian ambassadors
  8. TARCHIANI, Alberto
  9. Alberto Tarchiani — mission record (1945–1955)

Related Reading

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Italy and the United States Sign the Economic Cooperation Agreement. Chanceries Diplopedia. Record 154842412363d49a712d. https://chanceries.org/research/history/italy-recovery-9c631094bb/

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