-7-  
 
 
credit for raw materials.  
 
 
Mr. Keeny: And for that reason I think we should all be urging that   
attempts be made to remedy that situation as well as carry on the present   
work, so that in six months or a year we will be shifting to another   
plan.  
 
 
Mr. Taylor: I have been told many times how efforts have failed.  
 
 
Mr. Barr: Has anybody been charged with the responsibility of  
industrial rehabilitation?  
 
 
Mr. Keeny: It is an interest of Allied Commission and G-5.  
 
 
Brig. Parkinson: But surely industrial rehabilitation is taking place all   
the time. All you have to do is to read the reports of the Industry   
Sub-commission of A.C. to know that industry is beginning to function. In   
ragard to the shoes--there is a certain question of time in   
re-requisitioning of buildings and factories. We are trying to reorganize   
a tannery. We have the hides in the country and in Sardinia. We have been   
lacking the facilities for the tanning. There are a lot of things going on   
right now. It's sort of a "can't see the wood for the trees" proposition.   
I'm not over-optimistic, but it should be realized that there is a   
tremendous amount of rehabilitation taking place.  
 
 
Mr, Keeny: I agree that that is going on--there is a 50% increase in   
power--but the tempo is too slow. Our function is to cooperate with A.C.   
and AFHQ to get things done rapidly--to push obstacles out of the way if   
all support the joint program.  
 
 
Mr. Taylor: I agree with all that, but I was just wondering whether  
the directire of UNRRA includes the question of the rehabilitation  
of plants,  
 
 
Mr. Keeny: Not in Italy.  
 
 
Mr. Taylor: I thought you were acting under a limited scope. The  
second point--and in going back to our starting point--the reason  
that the Italian Government does not buy those shoes in America is                                           ?  
that it has no credit. I don't know how they could buy cotton without  
foreign exchange if they cannot buy shoes.  
 
 
Mr Keeny: The Allied Commission might be able to buy it for them  
as they buy wheat.  
 
 
Mr. Taylor: The Allied Commission may be able to do it--I don't know  
A.C. doesn't give anything away, so that raises another difficulty.  
American Relief for Italy makes free donations only. A great many  
of these people who need the shoes most cannot afford to pay for them.  
 
 
Mr. Barr: If the Italian Government got them from the Allied Commission,   
they could do what they pleased with the shoes.  
 
 
Mr. Keeny: Even if they sold them for 200 lire, it would be a great  
help.                                                                                     i  
 
 
Avv. Montini: Some of the workers would not have the means to buy  
shoes when they do not have enough to eat. If they saw the possibility   
of buying shoes, they would have to have a larger salaryand that makes   
for inflation.  
 
 
Mr. Keeny: At the present we are limited as to the amount of money  
we can spend for shoes and things of this kind and in the amount that   
will be made available to italy, but we will press to get as many  
shoes as we can immediately and support your efforts--and we will