-4-                             
 
                                                            
 
 
5. I brought up the question of the wage basis in Italy and asked if 78   
lire was the base rate for wages. I was not entirely satisfied with the   
discussion on this point for it appears that while the base rate of pay in   
certain sections is 78 lire per day the government has prevailed upon the   
employers to add to it another 40 life per day making the wage ll8 lire   
per day. This applies of course only to those who have jobs. I inquired if   
any provision was made for those with a family who were without jobs and   
he said that it had not been done on a national basis but that it had been   
undertaken to administer simple relief where needed but no plan of   
unemployment payment had been adopted. He felt that there was work enough   
in Italy if permitted to function under its own direction and with its own   
facilities in major aspects without introducing at this time, when such a   
tremendous opportunity exists, such a plan but at a later time if   
unemployment developed they would consider a plan of unemployment   
allowances. I inquired the average number in an Italian family. He replied   
ght be five in southern Italy and in northern Italy probably
 
                                                            
 
 
6. The Prime Minister referred to the need of reconstructing the railroads   
offering as it does a tremendous opportunity for employment. In that field   
it would be essential to have quantities of copper as the Germans as well   
as the Italians denuded the railroad electric system of all the copper   
they could commandeer. I indicated that it would probably require   
considerable time to produce the motive power to operate the railroads   
whether it were electric or with any ether sort of motive power, the   
alternative to which was transportation coastwise by ships or over the   
                      reads by truck.                       
 
                                                            
 
 
7. I raised then the question of the political situation in northern Italy   
which might develop after it is conquered to which the answer seems to be   
that they expected very great difficulties when Rome was liberated but   
that with careful handling they had overcome in general the opposition to   
the government and had been given a measure of support that was not   
anticipated. They felt that, while the northern industrial area and the   
partisans might impose a problem~ they had the fullest confidence that it   
be met and overcome by the same methods employed in southern
 
                                                            
 
 
 The Prime Minister spoke with satisfaction of his relations with   
          General O'Dwyer who seemed to grasp the           
 
                        problems...