FOREIGN RELATIONS, 19 4 6, VOLUME VI



message to Stone from SAC for De Gasperi that General Morgan was
[aware of?] recent developments in Venezia Giulia and that Allies
would continue to exercise all vigilance to preserve balance at present
existing there.
  Although he signed this message, SAC expressed some considerable
indignation over attitude of Italians which he termed hysteria. He
admitted, however, that he would certainly want all the troops he
could get, including Italians, if Yugoslavs should attack.
  Sent Dept as 287, repeated Rome as 238 and London for Dunn as 44.
                                                       BYINGTON
SWNCC Files
M1leemoranduem by the Acting State Member of the State-War-Navy
       Coordinating Committee (Matthews) to the Committee

TOP SECRET                        [WASHINGTON,] March 14, 1946.
Subject: Situation in Venezia Giulia.
  The Secretary of State has carefully considered the memorandum
of the Joint Chiefs of Staff relating to the situation in Venezia Giulia,
which was contained in SWN 3995 of 8 March 1946, and requests that
the following views be transmitted to the Joint Chiefs of Staff.
  The Secretary of State shares the concern of the Joint Chiefs of
Staff over recent developments in Venezia Giulia, and desires to con-
firm that the political decision continues to be that the U.S.-British
forces fight if the Yugoslavs advance. In this circumstance, the
Department considers that from the political point of view, a public
statement along the lines proposed by General Morgan, as referred to
in the memorandum from the Joint Chiefs of Staff, would be desirable.
It is the Department's view, however, that at the present time, when
the American and British Governments are participating in the de-
liberations of the Council of Foreign Ministers on the Italian Treaty,
and when a Commission of Inquiry, including British and American
representatives, has just begun its studies in Venezia Giulia on the
question of the Italo-Yugoslav frontier, this statement should pref-
erably be issued by the Supreme Allied Commander, Mediterranean,
in the name of the two Governments, rather than by the Governments
themselves. Accordingly, the Department proposes that a statement
along the lines of the attached draft 29 be issued by General Morgan.
                                          H. FREEMAN MATITHEWS
 '9Not printed; it was identical with the statement quoted in telegram 93,
March 20, to Caserta, p. 882.



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