CURRENT INTELLIGENCE DIGEST -- WESTERN EUROPE -- 7. ITALIAN GOVERNMENT MAY FAL

Created: 1/11/1962

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WESTERN EUROPE

Italian Government May Fall

Continuing pressuresore broadly based, center-left government In Italy are expected to bring about the resignation of premier Fan-fani's Minority Christiangovernment shortly before or afteranuary. The left-center Social Democrats and Republicans have announced that they will withdraw their support from Fanfani'son this date, when the Christian Democrats' national party congress begins. These two parties hope to force the Christian Democrats to Join them inovernment which would also receivesupport from the Kenni Socialists.

Fanfanl and Christian Democratic secretary Moro favorovernment, and the party congress is expected toesolution approvingowerful minority in the Christian Democratic party, however, will seek to block its implementation.

The Republican party's left wing is in favor ofa center-left government based on parliamentary support from the Nennicontrolfeats in the Italian Chamber ofit lost ground in recent party balloting in several areas of northern Italy to the right wing, which opposes formation ofovernment.

However, the political strength of right-wing spokesman Randolfo Pacciardl has been weakened by his Involvement in the Fiumicino airport scandal, now under investigation, and his resultant resignation asof the Chamber of Deputies' defense committee.

While Social Democratic party leader Giusepoe Saragat's decision to press nowocialist-backed center-left government is motivatedesire for social reform, he

also hopes to attract Socialist support for bis candidacy for president of the republic, who will be chosen by parliament in May. In addition, with national parliamentary elections likely before the end of the current termaragat wants to establish the basis for an electoral campaignclose identificationhristian Democratic Ee apparently fears that his party's inability to exert strong influence on the policy of government coalitions in which it has participated is one factor io its loss of votes over the years.

Increasingly open advocacy of the formationocialist-backed government by Christian Democratic leaders has improved its chances, promier Faafani's speech at Casertaecember was widely interpretedlug for it, andanuary

(over)

JFK

iYC

Jan 62

INTELLIGENCE DIGEST

7

party secretary Horo told the press he believes such ais necessary to the life of the country. the conservative Liberal party, which would be left out ofoalition, and the right-wing Christian Democrats will work to preventwill the Communists, who foar political Isolation.

Tbe Nennl Socialist left wing, for its part, continues to resist the party's loosening of ties with the Communists and may press for concessions which the Christian Democrats could not granj Id exchange for Socialist support. Although the domestic planks of the draft program the Socialists

have prepared closely resemble those suggested by the Christian Democratic youth group, some of these planks are already under attack by right-wing Christian Democrats, and the Socialist left wing may try to add an unacceptable foreign

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central council meets this

ir the program.

lIOlSYrl IUJ

Jan

INTELLIGENCE7a

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