-2- of overlapping. He whole-heartedly agreed with this theory. In the general field he seemed to be quite concerned by the constant changing of personnel, especially by our Government. He specifically mentioned the economic side the retirement of Mr. Grady and the prospective retirement of General William O'Dwyer. He felt that this was demoralizing. He felt that the Vice President of the Allied Control Commission in charge of economic affairs should be a very experienced business executive who, with a staff of businesstrained men on a permanent basis, would be most effective. In order to gain information I asked him why this vice president of the economic section should always be an American to which he replied that the whole scheme of the organization was one of balance and that the different agencies were set up in a balanced fashion as between the British and ourselves. It has been my impression since arriving here that in effecting this so-called balance some of our appointees have been put in the most difficult and, I would say, dangerous positions. That applies both to the field in which Colonel Poletti has been giving such heroic service and the field in which Mr. Grady and General O'Dwyer have been making such tremendous efforts, I do not see that the British are occupying posts subject to the same amount of public criticism. Unless there be some advantage in the handling of the economic section by oar representative, the natural question arises whether it will not be advisable to let an outstanding British executive assame the post. General Wilson said that British personnel was spread out too thin at the present time and they did not have the same number of people to call upon as we. I have just seen a statement prepared by the Food Sub-Commission of the Allied Control Commission which indicates a substantial reduction in the tonnages now proposed to import against the requirements for the period October through December, 1944. I was considerably disturbed at the statement made by General Wilson that General. O'Dwyer was soon to retire. I asked General O'Dwyer to call and he has just left me after an extended interview, the result of which moved me to send a telegram through the Vatican radio suggesting that I considered it very important that you should have a frank talk with him about conditions here before you meet the Prime Minister. That meeting has been announced in all the papers here although the date and place of the meeting is not generally known. In my opinion General O'Dwyer has gained a very realistic opinion of |