Created: 8/22/1962

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ay S. Clins

Deputy Director (Intelligence)

Central Intelligence Agency




emorandum from Koroer end myself to tba) Praaldent on TUa ledwiiwraadam from McGeorge Bundy to General Taylor on Mayba eperatlre paragraphs' oi which read aa follow a:

"Tba President nan been reviewing tba Italian poUlical situation and would like toecommendation from tbe Special Group,atter oi urgency, with reaped to further support for tne Socialist Partynwith tba inrio.ii contest which It faces In3 elections against the Italian Communist Party (PCX).

"The Praaidant wishes tba coat, feasibility, andafarger-scale aper alien to be fully aa ass aad, and ka weald hope for aa affirmative recommendation If adeouate manna ofcan be faun*, tt would be bla expectation that she program wouldaks-shot ope rati on andont Inning subsidy. '*




Tba Ratabardt argument, aa you will awe,hat tba aat ostomist wing of tha PSI la doing wall an lta own

hat futoro PSI1 ot tn* uj aan PhUl, Wot of tho POl (S) that, a* tbe PSI growa

atrongox, it* competition with tho Comnaaniat* for working claia eupport will compel it to press the Italian Government to ever more radical positions;thai tne cantor-left experiment, fax from iso-lating tho Cnmrrv.ini* at present givingow roepectablllt

nodopular-front mantality]

Relnhardt's points,re soattara of which Fanfani, Moro and Saragat aretba boat Judgosi |

noting that Fanfanind Horsoy on Juty do that, far as tho Nensi Socialists worn concerned,

wore going mock better than had boon anticipated. He said ho badong talk recently with Nenni and ho Implied that they found tnomsolvos In agreement on future poll da*. Fanfani said that Naomi bad made no abjoctiona to Italian for sign policy, not oven inhe process

ol1 oxthe PCX was going evan

taster laea expected. F* tha Oral time ba tba Prnvince ci JrncU, tba Csaaaaaaatoia1 war* la tba apposition! and alao lot tba first time, tha PCI Miathi opposition In all the provincial capitalsberey."

Id thla acauacttom blgaor MorUw, wha la la charga oi tha DC office tor local and provincialttmi laato, called on roe on He gave aw aa Idyllic plctore of CC-PSIclaicna that there has been aa PSI pre* sure on foreign policy, predicts tbat the PS1 will continue steadily to disengage ltaelt tram local ties with tba PCX, aad even detoaa* tha regional gc^-erconetU schema, contending that It baa deep reote In Catholic social

In connectloo with Ambassador Rainhardt'a pointt le my under-*tending chat, since Freddy toft Italy, tha Pol trade ainonists have beenaaderate rather than aa extremiat role la tha labor troublea. Aa tor pointt should ba aot ad that Nenni la Ms Enoca interview said tbat "tha crisis al fltaUnlsm to truly tha crisis of modernnd declared it to ba tba result af tbaailure "to implement soda lianalimate af democracy aadn rasp anas, Unite denounced tha latorvtow tor Ua "bar ah and baseless attacks against tha policies ol tha aVsllaa Communis* Party" and laid that it waa "pervadedively sail riaaiaaalrt spirit." Ualta charged Nenni with tarsaag hi* oot -aaliaisrn ana tha problem* Of socialism to tha oxer dee af power Loan tha tontariartwi af hi* whole political mtratogy."

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