S E C R E T
 
    10. GERMANY'S decision to abandon ITALY will be a calculated
measure designed to injure the UNITED NATIONS as well as to 
benefit herself. ITALY will be compelled to pay a high price
to GERMANY for the privilege of seeking peace with the UNITED
NATIONS. GERMANY will be unconcerned with the resulting condi-
tions in ITALY or the terms of peace ITALY is able to reach.
 
    11. To insure that GERMANY may gain the economic advantages
she desires and may provide for her own security, GERMANY will 
denude ITALY of such economic assets as can be moved or destroyed
in the short time available. These measures will impose upon 
the UNITED NATIONS the burden of furnishing economic support to
ITALY, and thus impose a further drain on UNITED NATIONS resources.
Italian units returned from occupied countries would be of value
to the UNITED NATIONS in stabilizing the situation in ITALY.
However, in order to deny the use of Italian forces and equip-
ment to the UNITED NATIONS, GERMANY will not assist in the re-
turn of Italian troops and materiel to the Homeland, and will
insist at least upon the scuttling of the Italian surface fleet.
 
    12. The severe measures which GERMANY may impose as the price
for permitting ITALY to withdraw from the war might bring about
the conditions of collapse rather than conditions leading to un-
conditional surrender.
 
    13. It appears unlikely that ITALY will submit to terms of 
surrender which fail to provide for the stability of her govern-
ment. If terms of surrender are imposed that fail to provide 
this stability, collapse is likely to follow. It is most de-
sirable, therefore, that the terms be sufficiently liberal to 
permit a stable Italian government to survive. The alternative
would be the obligations resulting from a collapse.
 
 
 
 
 
 
 
 
 
                    - 4 -