and the Royalist parties will combine against the Communist party.    
Competent observers indicate concern over the growing strength of the   
latter.  It is alleged the latter is direceted and financed from Russia,   
that it secretly recieves arms from Russia via Yugoslavia at Bari and   
elsewhere in Italy.  My authority for the latter statement is a very high   
                            one.                            
 
                                                            
 
 
V.   In the past the poeple have been accustomed to the monarchical form   
of government.  They followed blindly the Fascist leadership which had been   
approved by the King, Fascism promised a better life.  There is no doubt tha  
t with relatively few exceptions and until the tide of victory began to turn  
 to defeat, the great losses of life, and when restrictions on living   
standards began more and more to be felt, the nation as a while was   
intrigued with the dream of Empire -- of gain, of better days.  At no time   
did the masses welcome an alliance with or trust the Germans.  The   
prominant members of the Providences and Communes wore the Fascist uniform.   
 Many local leaders and office holders became Senators or members of   
committees.  All important industrialists and land owners were summoned to   
Rome at intervals, often weekly.  This identified them with teh regime.    
They could not carry on their enterprises without permission of and   
through cooperation with the regime.  In this way practically all the   
forceful men except relatively few who went into hiding or escaped to   
other countries, became tainted with Fascism.  
I believe that in an honest test of strength the nation would rally around   
the House of Savoy as being traditional, definite and more dependable than   
any vague or untried group or system.  Fascism was an experience not easily   
forgotten.  Its ultimate disaster is felt in many aspects of national life.   
 A strong government is essential.  The Communists for the moment say they   
are not anti-royalist, but wish to liberalize the Government.  Many doubt   
                      their sincerity.                      
 
                                                            
 
 
VI.  When the northern portion is freed, many men of anti-Fascist   
convictions are said to be available to assist the government.  The   
partisans are also said to represent an influence to be reckoned with in   
the political future of the country.  Many partisans are said to be   
anti-royalist and anti-communist.  It is said they plan the formation of a   
bloc for political action.  The partisans comprise, among others, many   
educated younger men.  Their dangerous service to the country would seem   
to entitle them to a voice in public affairs.  At present while in service   
and after their service is ended they have no particular Italian status.    
            They serve the Allies in the field.             
 
                                                            
 
 
VII. The shocked condition of the people, their lack of initiative,   
their lack of strong leadership is apparent.  Among the politicians   
        generally speaking the struggle for personal        
 
                           power