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REGIONAL SURVYTBY COMMITTEE#20

AUSTRIA CZZCHO-SLOVAXIA ITALY

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JUN 2 1 1965
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CO~ivzAND AND GENERAL, STAVJ2l SCHOOL

2d CUNIMAND CLASS

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F i*onal Surveys Subcourse

REPORT ON REGIONAL SUR(VEY OF ITALY, AUSTRIA AND CZECI,-SHO,5 '24 April 1946

AKIA

Submitted by Committee No. 20

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TdlMORANliDUT
SUB JEOCT:

OTY)R:

The Assistant Comandant.

Report on Regional Survey of Italy, Austria and Czecho-Slovakia.

1. This committee is of the opinion that Italy, Austria and Czecho-Slovakia have no significant relationship geographically, economically, politically, militarily and are not likely to act together in international affairs. Therefore, these countries were studied separately and are reported upon separately. 2. The report on each country is endlosed herewith under the tab marked with the name of the country. 3, The organization of the coimmittee is showia in APPENDIX A hereto. 4. The conclusions reached in the case of each country are concurred in by the cormnittee as a whole.

Colonel, AC Chairman, Corrmittee No. 20

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Colonel Robert C. Orth, AC - Chairman

Colonel Andrew i.

O'2eara, FA
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zecho-Slovaka Italy

Lt. Col.

Holand H.

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APPJEKYiIX A

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Relional Survey of Austria

Facts Bearing on the Problera..........

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Conclusions. APPENDIX A. Discussion of Factors of National Power and Lihitations in Vorld Affairs. i

Annex I to Appendix A Annex 2 to Appendix A

Biblioraphy
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UNCLASSIFIED
THE PROBLEM
To survey Austria to determine its capabilities and limitations in World Affairs in general, and in reference to the foreign relations to United States in particular.

FACTS BEARING ON THE PREBLEM 1, Austria is a land of the middle. Its life surrounds the Danube

It is a land of mountains. river. occupation. 2, 3. 4.


5.

Agriculture is its prinoiple

Vienna is.an oversized cqpitol and is highly industrialized. Economically Austria cannot support itself. Politically she is in a turmoil
Militarily Austria is be presently weak, ..m-aiidL ilW.

ODNCLUS IONS.
1. Austria will not become a strong nation, militarily or economically for many years. United States occupying force have not helped our stand and trust by the Austrians Political unrest and distrust will continue Russia is exerting major efforts to bring Austria into her fold

2.

3. 4.

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Is Austria a land of has been? it

Once the greatest power of the world The political and economic union

has been a country for over 100 years.

of the Danubian peoples was one of the oldest facts of European Polity. With all its previous wars it emerged a weary but not beaten nation - somewhere

she must have a basis of profound determination - what was that basis. Austria had all the necessary requirements for realistic existence-a profound geographical, economic and social nature - that dream of Francis Joseph the last The

of the Hapsburgs who was the bridge from the 18th to the 20th Century.

country that was one while the United States grew from a few scattered colonies to the greatest power on earth - to unite all rule. Christiandom under one temporal It cut off the

The treaty of Versailles dismembered the Austrian empire.

two hands from the head, Hungary the food area.

Austria the business head, Czech the industry and

Let us look at Austria. She emerged after World War I as a territory of only 32, 373 sq miles. It is truly a middle land and is Germany, bordered by seven Its

countries,

Italy, Switzerland,

Czech- Hungary and Yugoslavia.

total boundary is

2,637 miles long and the Danube traverses its

length for 300

miles, With a population of 6,760,000 people the average ratio of 210 people per square mile is not excessive. forrestry and agriculture. Vienna however really separat-

About 32% population employed in is an entirely different picture.

Population 1.9 million people is

ed from the rest of the country. If ter of a country of 50 million is surprisingly rural. Austria is

this oversized capitol that was opee the cenexcluded from the statistics Austria becomes

The agriculture class then becomes 45% of the population. the average height is roughly 3000 feet.

a land of mountains,

They are centrally located with the low mountains at the north, northeast and east, and south. The water supply.is abundant which forms the basis for the Forests cover 37% total area while meadows and pastures 1% and vineyards 1.2% remaining 11% unproductive. For every 100 people there are

best alpine pastures. 27%,plowland,

23% ,gardens,

Live stock epitomize character of agriculture. roughly 42 hogs, 35 cattle, 128 chickens,

4 horses, 4 sheep and 3 goats.

Prior to the war she imported 25% of her food supplies, however.

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Austria has a fairly high degree of rural electrification.

It

made good

progress toward increased mechanization during the 30's, the most highly industrialized were lower and upper Austria. In the years between 1919 and 1938, iron and steel, magnesite and water power constituted the three outstanding factors of Austria's industrial activityafter incorporation into Greater Germany, brought in power. Austria's industry was systematically e. extension of Hydro electric

line with German rearmament plans, i.

Building of the Herman Goering steel works at Linz and increasing especially oil. All plants were modernized Vienna, Wiener-Neustad Hand in hand with this

utilization of mineral resources,

and the manufacturing program completely changed. and other cities became major industrial centers.

technical integration German money relieved the chronic capital shortage of Austrian industry. Thus the big Austrian banks came uAder German domination.

I would like to show you a slide of the main industries of Austria (Note that the oil, iron and coal are located in fluence) Population predictions show a decrease for the next 20 years of approximately 400,000 people. The male manpower potential will drop about .8% of a million or about 7%. Before the Anschluss the civilian communications in Austria were supervised by the Minister of Trade and Communications. The telephone system was by German concesthe Russian sphere of in-

far the most important part of the telecommunications. services. sion was responsible for the good line equipment.

Postal service was good and All these ser-

depended on railroads, motor vehicles and air for transportation. vices were taken over intact by the Germans.

The military side of the new Austria on the surface looks as though Austria will be through as far as the military phase is concerned. The Allies

have allowed them to have a force of 1000 men which were part of the French Army (2 Bns) with French oommanders. These people will act as border guards It must not be forgotten,

and form the bucleus for the new Austrian Army. however,

that the people of prime military age will stay between 1.2 and .8

millions for the next 25 years.

yfestering

sore of Austria today is

her political affairs.

To begin with American policies in

Austria after her supposed liberation We treated her the same

has lead to only confusion and distrust of us. if not a little

worse than we did Germany after giving her so much lip The partition of her land is no help either.

service before the invasion. Bakers in

the Russian area of Vienna are making unsalted bread because the The same applies to the fuel problem. There is too much squabbling and

salt mines are in the French zone.

This all aggravates the political unrest. distrust over political appointments, as president who is Peoples party.

With the pre-war chancellor Dr.Renner Figl chancellor champion of the even

a Social democrat and Mr.

Even Russia is

complaining about thiee cabinet members,

though the Communists hold the offices of Minister of the Interior and Minister of Education. So now we get to the real trouble of Austria. Au-8Ita is mainly a highly

industrialized and political capital with rural conservative hinterland * The political and economic relations with its republic may appear in the second. neighbors which troubled the 1st political

Independence can benefit only if

and social security are obtained, and to do thishe nations.

must integrate with other

Further outlet for agriculture and import of capital are needed. While

economic developments are decisive much depends on the structural character of the post-war economy. and if Its program should not be hampered by occupying countries is established, Austria may look forward

a sound economic foreign policy

to a better and independent future. twbance for union with its r

Lacking this there will be a continued dar

neighbors as Germanyr Hungary.


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Annex I to Appendix A to Report of Regional Survey of Austria

BibliaPh.

ID Reports

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Francis Joseph by 'Eugene Bagge

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The Last Five Hours of Austria

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Annex II

to Appendix
to

Regional Survey of Austria

Alide

of Industries

of Austria

MINING AND INDUSTRY IN AUSTRIA

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Command and General Staff School

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Regional Surveys Subcourse

Regional Survey of Czechoslovakia

Facts Bearing on the Problem

Page 1

Conclusions

Appendix A --

Presentation

Annex I to Appendix A --

Map of Czechoslovakia

Annex II

to Appendix A --

Bibliography

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The Problem. 1. To analyze the present and potential national power of Czechoslovakia with particular attention to its importance to the United States. Facts Bearing on the Problem. 2. Geographically at the center of Europe, it presents a contrast of strength and weakness. It is peculiarly suited to becoming a bastion of a great power. 3. Its dominant peoples are tough, educated, aggressive, and strongly nationalistic in the face of centuries of adversity and denationalizing pressures. 4. Between 1918 and 1938, it was by a wide margin , the most democratic country in Central Europe. 5. It is today thoroughly dominated by Russia. 6. It is taking vigorous steps to improve its military strength and position. 7. It has a strong tradition of friendship for the U.S.A. Conclusions. 8. Russian influence will remain dominant in peace and in war in the forseeable future. 9. Czechoslovakia will resist Russian control and maintain cultural and politicial orientation toward the west to a greater extent than other Eastern European countries. 10. With encouragement it will maintain its tradition of friendship toward the U.S. 11. It can be a valuable listening post for the U.S. in the ring of Russian satellites.

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Appendix A to REGIONAL SURVEY OF CZECHOSLOVAKIA Oxechoslovakia is strength and weakness. a country which presents surprising contrasts of Geographically it is at the center of Europe. Its

major components were the Austro-Hungarian provinces of Bohemia, Moravia, Slovakia, and (from 1918 to 1938) Sub-Carpathian Ruthenia. Bohemia and

Moravia are ringed by rather formidable wooded mountains except at the Moravian Gate and the south boundary of Moravia. mountains along its Slovakia has high

northern border with their valleys opening to the south.

The reads and railroads of the country were originally directed to the south. The lack of east-west communications accentuate the military weakness of a country 600 miles long by 125 to 50 miles wide. first its One of Czechoslovakia's

steps as an independent nation was to construct connecting links in road and rail system. Unfortunately topography forced these lines

close to the exposed southern border of Slovakia. Slovakia is a country of small towns, lumbering, and agriculture.

Bohemia and Moravia are the wealthy provinces.

In addition to well developed

productive agriculture and extensive mineral resources they contain the bulk of the industry of old Austria-Hungary. In the heavy industries they Wth this beginning,

contained 2/3 to 3/4 of the resources of the empire. Czechoslovakia rose in ofl Europe.

20 years to be one of the wealthy small countries

On the military side the great Skoda works supplied most of the

armament for southeastern Europe and the country had an airplane industry reputedly producing 1000 planes a year. In minerals, Czechoslovakia had adequate coal, but did not have suffiextensive exports of fabricated iron and steel. It was the third largest producer of uranium.

cient iron to support its It

had no copper or petoleum.

Prior to 1918, Czechoslovakia received much of its food from


sources. It drastically changed its

outside

agriculture and by 1938 was almost

self-sustaining. World War I culminated a century of struggle by the Slava, led by the

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Czechs, to obtain more voice in the Austro-Hungarian government.

On the

collapse of Auntria the Czechs and Slovaks declared their independence and were recognized by the Treaty of Verasilles. The wealth and the problems

of the new state were augmented by giving it the Polish coal district of Teschen and a balt of rich Hungarian farmland. Finally, homeless and The intention was to

poverty stricken Sub-Carpathian Ruthenia was added.

strengthen Czechoslovakia and Roumania against Hungary by giving them a


common boundary.

There was talk of autonomy for Ruthenia and Slovakia.

The Czecks main-

tained that neither province was ready for self-government until the people had been educated and the estates of the powerful landlords distributed to the peasants. They thereupon set up a fine system of schools and accomgovernment. a strong

plished land reform under a strong central

The Czechs further strengthened the country by building

military system under French tutelage and by concluding a series of foreign alliances. The first was the Little Entente, between Czechoslovakia, Next she signed a military alliance with

Roumania, and Jugo-slavia.

France and her strong army became

a major factor in French power politics.

Finally in 1935, she signed a mutual assistance pact with Russia. Hitler was quite correct when he said that Czechoslovakia was a
knife pointed at the heart of Germany. Immediately after the Austrian He used the Sudeten Germans

anschbuss he moved to liquidate this threat.

of Bohemia and Moravia to whip up a series of crises which made hostilities seem inevitable. At Munich in Sept. 1938, France, England, and Italy, Germany occupied

agreed to permit Germany to occupy the Sudeten regions.

much of the country and the following spring took over the remainder,

except for Teschen which Poland siezed, and Ruthenia and southern Slovakia which she gave to Hungary. During the war Gemany exploited the country, but reputedly encountered the most vigorous resistance movement on the continent. Czechoslovak

leaders organized a provisional government in London, and formed Czech brigades to fight with England and Russia. This government signed a 20

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year treaty with Russia agreeing to c

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FmainThe present government,

tain close and friendly relations thereafter.

following on the heels of the Russian Army, was established in Kosice, Slovakia, in March 1945. In June 1945, Russia and Czechoslovakia signed

an agreement by which Ruthenia was united to Russia "her motherland".

The 1945 population of Czechoslovakia, as constituted in 1938,


estimated at 151 millions, with 21 million men of military age, its declining birth rate, it With

was

has been estimated that by 1970 this would The This

fall to 14,900,000 with less than two million men of military age. present policy of expelling minorities will reduce it even more.

decline is particularly important because the population of most countries in eastern Europe will rise during this period. In 1938, 65% of the pop-

ulation were Czecks or Slovaks, about 23% Germans, 5% Hungarians, less than 3% Ruthenians. are the Czechs. Needless to say, the strong people of the country They are efficient,

They have been called Slavic Prussians.

industrious, frugal, calculating, and hard.

They emerged from the Austrian

Empire as an educated modern people with considerable experience in golvernment,and, as a result of their long fight against despotism, a nationwide love of depcracy. This they put into effective practice. They made a

real effort to solve their minority problems,

though here they fell a

foul of their policy of establishing a strong central government. Czechoclovakia's minorities were well treated. Nevertheless the

Slovaks and Ruthenians resented the beaurocratic efficiency of the Czechs and the high taxes their schools and roads necessitated. The Sudeten Today the Even this

Germans wanted a canton from of government like Switzerland's. Czech government is expelling its German and Hungarian peoples.

will not bring unity as it

will still

leave the distrust which the Czechs

feel for the Slovaks because of their collaboration with the Germans. The Slovaks on their part will continue to omic dominence of the Czechs. largely German or Jewish. are expelling the Germans. In 1938 Czechoslovakia had one of the best trained and equipped armies in Europe, composed of 14 divisio resent the political and econ-

Furtheri2ore industrial management was

The Germans killed the Jews and now the Czechs

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orce of over 1400 planes.

--3- U '57

AN

UNCLASSIFED
In 1933, with French assistance it began a system of fortifications which

were pushed with increasing vigor as the international situation deteriorated. An authorative German military article written after the seizure of these positions states, "Everything is incomplete.-- About 75% of the fighting

power would have been attained in the spring (1939), and 100% in the autumn. It is certain that in that case the Czech soldiers would never have abandoned their lines of fortifications without fighting." In March of 1938 ILnston Churchill in a debate sumarized Czechoslovakia's power as follows. "No doubt they are only a small democratic state, no

doubt they have an army only two or three times as large as ours, no doubt
they have a munition supply only three times as great as Italy -- ".

Today the Czech army has a strength of 145,000 men which the communist government is about to reduce to 105,000. training is fully operative. There is no questioning Russian influence in Czechoslovakia. Though Its system of universal military

there are only about a thousand non-tactical Russian troops remaining in the country, the Communists hold six important cabinet posts and the undersecrateryship of foreign affairs. to these posts. out of 300 seats. The recent election confirms their right :o holding 114

They are the strongest party in parliament,

The premier is a former ambassador to Russia and has


As a result of the

referred to Czechoslovakia as an outpost of the U.S.S.R. elections he will be superceded by a Communist.

Communist proganda has praised the Red Armies part in the liberation and attempted to undermine United States prestige. Offsetting this has

been the very unfavorable reaction of the public to the Red Army of Occupation. The Czech tradition of democracy and resistance to foreign pressure Czechoslovakia than in currently

will unquestionably result in far more independence in other Russian Satellites.

None the less Czechoslovakia is

socializing 70% of its industry. There exists a well established tradition of friendship between Czechoslovakia and the United States. and industry. The Czechs admire American democracy

During the first World War, Czech and Slovak communities

in this country furnished 2500 volunteers for Czech legions and donated

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substantial sums of money.

In June 1918, representa1~b

s(or

Czech and Slovak societies signed a declaration in Pittsburgh calling for the independence and union of the Czechs and Slovaks. undo importance has been attached to this declaration it an historic tie. While much does constitue

With our present difficulty in penetrating Russia's sphere of influence, our friendship with Czechoslovakia is well worth cultivating.
If nothing more it can furnish a listening post inside the iron curtain.

17

Annex I to Append~ix A

to
Regional Survey of Czechoslovakia

Map of Czechoslovakia

GERMANY
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Annex I to Appendix A,

A'S

Annex II

to to

Report on Regional Survey of Czechoslovakia BIBLIOGRAPHY Bowman, Isaiah The New World, Problems in 1928 Plot and Counterplot in 1937 The Geography of Europe, The Paths that Led to War. Global Geography.

Fodor, M.W,

Central Europe.

Hubbard,

Georg(e D. Jo]hn Fra3k W.

1937 1940

MacKintosh, Notestein,

The Future Popilation of Europe and the Soviet Union, 1944 Czechoslovakia in European History, 1944

Thomson, Harri son S, Welles, Sumner

An Intelligent Americans Guide to the Peace. 1945 Czechoslovakia; Keystone of Peace and Democracy, 1938 Review of Europe, Russia, and Middle East. Vol I, No's 1,3,4,7,8,13. 1945-46 Military Summary of Europe, Russia, and Middle East Vol I, No's 1 and 5, 1945-46 Intelligence Review. No. No, 17, 6 Tune 1946 8, 4 April 1946

Young, Lt,

Corn. E.P.,9N

War Department .

MID.

War Departmeait

MID,

War Department .

MID,

War Department Military Attache Reportis

No. P-866 Czechoslovakia's Military Strength Sept. 1938 No. P-895 slovakia, The Military Economy of CzechoSept. 1938

No, 24,124W Military and Strategic Position of Czechoslovakia in the Event of an Attack. March 1938 No, P-804 Land Frontiers. July 1938

No, P-75 Discussion of Book, Czechoslovakia". May 1938 No. P-736 May 1938

"Protect

The Strength of the Czechs,

No. p-794 Attack on Czechoslovakia, June 1938 No, 2687 The Strategic Position of Czechoslovakia. Oct. 1936

New York Times

Files for May and June

1946.

to Appendix A
/~g

THE PROBLEM 1. To survey Italy to determine its capabilities and .. limitations in world affairs in general and in reference to -. the foreign relations of the United States in particular . FACTS BEARING ON THE PROBLEM 2. Italy occupies a position of strategic importance in the Central Mediterranean. Its long coast line and lack of depth make it vulnerable to attack from the air and sea. The war has devastated Italy to such an extent that 3. economic to fifty years to rebuild its it will take thirty structure. At its best Italy had a bare self sufficiency of food; a sufficiency of manufacturing industries, transportation Italy lacks raw materials, gold and communications systems. and foreign credit. 4. Italy is in political turmoil. The monarchy has been abolished by popular vote and the government at present is a The communist party parties. coalition of the six political has shown great strength but in recent elections was second to the Christian Democrat Party. The position of the communists has been weakened by the feeling that it is an instrument of Russian foreign policy; by Russia's demands for strippcolonies; and Yugoslavia's demands for the inf Italy of its The Roman Catholic Church also exerts a port of Trieste. against communism. powerful force 5. There are many factors of disunity among the Italian people and discords have recently been strong enough to paraTerritorial disintegration, though lyze the national will. possible, does not appear to threaten. 6. Militarily Italy is weak. While it has a manpower economic structure resevoir of 9 million men of military age, its raw materials to become a military is too weak and it lacks the military strength will be Italy's power of great importance. greatly limited by the peace treaty now being written.

CONCLUSIONS
7. Italy will never, in our time, be a military power of great importance. Italy is capable of following two courses in interna 8. national affairs. First, with a moderate government, .itiwill align itself with Britain and form a buffer against the extension of Russian influence into the Mediterranean. Second, if the Communist Party should come into power, it will extend Russia's influence into the Mediterranean and Italian industrial

capacity supplied with Russian raw materials will serve as a valuable adjunct to Russian industry. 9. Italy's position in international affairs is of vital
importance to the United States as one of the powers writing the Italian peace treaty and in following its announced policy Italy is certain to be support of the United Nations. of full a bone of contention between Russia and Britain in both of these -' councils. 10. It is concluded that, because of traditional friendship for Bitain and the United States; the influence of the Roman Catholic Church against communism; and Italy's desire to retain its territory; it will follow the first course and, with Britain and the United States aiding in its reconstruction, remain as a buffer to Russian aspirations for a strong position

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COMbNtD AND GENERAL STAFF SCHOOL

M1wARND CLASS

Regional Surveys Subcourse

REGIONAL SURVEY OF ITALY

Facts Bearing on the Problem Conclusions


APPENDIX A - Discussion of Factors of National Power,

Capabilities and Limitations in World Affairs.

ANNEX 1 to APENDIX A - Bibliography.

ANNEX 2 to APPENDIXA - List of Slides.

Submitted by Committee No. 20

gpZllr

APPENDIX A

to Report on Regional Survey of Italy

INTRODUCTION. In the fifty years following the unification of Italy in 1870 under a constitutional, and on a whole, a fairly liberal regime, Italy overcame many handicaps and made remarkable progress that ensured it a rank among the great powers of Europe. After having participated in the First World War on the side

of the Allies, Italy was disappointed in its ambitions for territorial gains which, among other things, gave rise to embitterment and provided the soil in which the seeds of Facism took root. The Facist regime led Italy into war on the side of Germany which brought disaster to the country. At the outbreak of World War II Italy was one of the leastt formidable of modern imperial states. more of a liability than an asset and, is uncertain. Italy's colonies were always at present, their disposition

The war has wrought such devastation on Italy that, However, due to Italy's strategic

at present, it is postrate.

position in the Central Mediterranean, its position in world


affairs is of great importance to all of the great powers. Let us consider briefly Italy's potential in the past, its condition today, and what we may expect of it in the future. GEOGRAPHIC FACTORS.(Slide No. 1)

Italy, with the islands of Sicily and Sardinia, has an area

about twice that of New England. -long and is

The peninsula is

about 760 miles

160 miles wide at the widest part.

Northern continental

Italy has a width of about 350 miles. Most of Italy is quite mountainous with the Alps forming a

barrier along the northern frontier and the Appenines extending like a backbone the length of the peninsula. are the Po, Arno, any extent and in Tiber and Volturno. its The principal rivers

Only the Po is navigable to

great valley are located the richest agri|


r

cultural and industrial regions

Most of Italy has a climate of hot, moist winters. country is

dry summers and

il

The soils are quite fertile but a* much of the many of the lowlands so poorly drained as a whole, cannot support fully

so rugged and -

that the country's agriculture, its dense population. Italy is

very poor in basic minerals. together with population pressure, explain

These basic facts,

) most of Italy's economic difficulties. Italy's long coast line and lack of depth make it vulnerable

to an enemy in control of the sea and of neighboring bases from

)which

air attacks can be launched and armies of invasion set out.

ECONOMIC FACTORS.-

Prior to the recent war Italy, by increasing production and decreasing consumption to levels that were low compared to most of Western Europe, Sin food. Manpower and well developed hydroelectric power are the only factors of abundance in the Italian industrial economy. Basic had achieved a high degree of self sufficiency

raw materials must be imported in large quantities.

Consequently,

Italy developed the processing industries, based on the import of


raw and semi-finished goods and export of the finished products., (Slide No. 2) Most of Italy's industry is concentrated on the Northern Plain.

Turin, Milan, Brescia and Genoa are great industrial centers. Italy is outstanding in the fields of civil engineering,

manufacture of electrical equipment, metallurgy and electrochemistry. land, before the war, merchant ships.

radio development,

electro-

Italy excells in

shipbuilding

had an annual output of 200,000 tons of

Due to the necessity for large imports and exports, sufficient good harbors, Italy built up its

and having

merchant marine to

sixth place among world powers.

Almost all Italian shipping as Italian

well aS most passenger traffic for Italy was carried in bottoms. Italy had an excellent railway

ate to

-2 .

meet demands.

About one-third of the lines were electrified.

Its highways, though somewhat limited by tough terrain, were adequate. Coastal shipping played a large part in domestic

transportation and inland waterways, principally the Po River and lagoon regions around Venice, of traffic. Italy ranked third among European powers in Its central position makes Italy national airways systems. Italy had a good communicationsr.gytem with underground cables connecting all of the important Italian cities and most of the capitals of Europe. There were good overseas cable All of these civil aviation. intercarried a considerable amount

an important factor in

connections to most of the important countries. means were well supplemented by radio systems.

In summing up Italian economy it may be said that, prior to the war, Italy had a bare self sufficiency in food; a

sufficiency of manufacturing industries, transportation and communication systems. prior to the war, Italy lacks raw materials and, even

due to an unfavorable balance of trade lacked The war has wrought great devastat-

gold and foreign credits.

ion on Italy's industries, transportation, shipping and communications. Even agricultural production has been reduced

to a great extent, the last harvest being only fifty percent of requirements. It has been estimated that it will take

Italy from 30 to 50 years to rebuild its economic structure. However, as Italy's industries are rebuilt they can be of great

value to any country than can supply the raw materials.

Russia

has already approached Italy with a proposition for building ships and manufacturing other items with raw materials furnished by Russia. POLITICAL FACTORS.Since the surrender Italy has been in political turmoil. An Allied commission has remained in Italy but the functions of government have been in the hands of the Italians. First

the King delegated his powers to Crown Prince Umberto as Lt. General of the. Realm, Then
8or

Ri 3u

of

Umberto who became King for am monarchy was abolished recently

Fl

eaton the

;Went ihto eile.

The six political parties have been in a constant struggle for power. Badoglio, Bonomi and Parri have successively formed Gasperi, the leader of the Christian Democratic In the

governments.

Party formed a coalition government last December.

recent elections the Christian Democrats gained in strength and is now the strongest party. Prior to this election the

Communist Party has been the strongest but its position has been weaken by indications that it is an instrument of Russian foreign policy; by Russias demands for stripping Italy of its
t colonies; and by Russian influenced Yugoslavia s

demands for

the province of Venezia Giulia which included the important port of Trieste. (Slide No. 3) Etis thought that Gasperi

will be asked by the new President to form a government. SOCIOLOGICAL FACTORS.Italy's population is about 44 million and has a natural increase of about 400,000 per year. It is one of the most densely The

populated states in Europe with 359 persons per square mile. center of population is the industrial North. There are many

variations in mental and physical traits among the Italians as well as language differences. While Italian is written and

spoken throughout Italy, local dialects vary to such an extentthat people from different sections of the country have difficulty understanding each other. iost Italians have not traveled The more progress-

enough to realize the unity of their country.

ive Northerners are inclined to look down on the people of the South and the Southerners, in turn, often assume an attitude of hostility toward the people of the North. There are no important minority groups although there are a few non-Italians along the frontiers. A considerable element

of disunity has been the exploitation of conflicts between economic groups by the Facists. The Roman Catholic Church, which claims

99,6% of the Italians, is a powerful unifying influence as well as a strong force against comm been strong enough to paralyze disintegration.'' within Italy. , its.f ^ ^B . '** ' '*' --.^, '.;--^* *.' * .
*CT ^ ;-*- , '-

ritorial
I iot ;.appear ..to;f threaten. ' *:, : . ':.-' * .; **, ,._ - * . , . a- :
**

MILITARY FACTORS.Italy's greatest war reserve is its manpower which was about Its great wea e a in

9 million men of military age in 1939. the industrial economy, industry. is the lack o

After the surrender the armed forces practically disintegrated, though later some units were reorganized, reequipped, and fought on

the side of the Allied Forces against the Germans.

The Italian

Navy which was to have controlled the Mediterranean proved to be quite ineffective during the war. The peace treaty now being written will limit the Italian Army to a strength sufficient only for internal security. recommended that the strength be 200,000, It has been

including 65,000 Carabinieri

br

State Police.

The future of the Navy is uncertain.

There is a

difference of opinion among the peace treaty delegates as to what extent Italy's Miediterranean islands and frontiers should be demil itari zed.

From past history and the condition of the country at present it is concluded that Italy will never be a military power of great

importance.
kAPABILITIES AND LIMITATIONS IN INTERNATIONAL AFFAIRS.Italy is
affairs. First,

capable of following two courses in


with a moderate government, it

international

will align itself

with Britain and form a buffer against extension of Russian influence into the Mediterranean. power, it Second, if the communist party comes into

will extend Russia's sphere of influence into the industrial capacity supplied with Hussian

Mediterranean and Italy's

raw materials will serve as a valuable adjunct to Russian industry. Italy's position in international affairs is of vital interest to the,United States as one of the powers writing the Italian peace

treaty and in following its announced policy of full support of the United Nations Organization. It is concluded that, because of a traditional friendship for the influence of the Roman Catholic desire to retain its colonies

Britain and the United States, Church against communism,

and Italy's

and the disputed territories along the frontier, Italy will follow the first course and, with Britain and the United States aiding in its reconstruction, remain as a bJ 5.

Ins

for

a strong position in the Mediterranean.

ANtNEX I to APPENDIX A
to

Tj

Kl

Report on Regional Survey of Italy

BIBLIOGRAPHYT

1, 2. 3. 4. 5. 6. 7.

Geographical Foundations of National Power Hq., ASF, 1 February 1944 Italian Basic Handbook, 1943 British War Office Italy and the Comring World, 1945 Don Luigi Sturzo Military Sumary of Europe, 1945 MID Military Sumary of Europe, 1946 MID Political Situation, 1945 MID Estimate of the present position of the Communist Party in Italy, May-Sept., 1945 MIS WDGS Survey of Italy, 1940 Army War College Survey of Italy, Balkans and Turkey, 1945 First Command Class C&GSS

ASF Manual M103-l R-12591 945.09 S-1121 & 5-12037 5-11821 S-11924 <

S-12013 0-4097 0-12808

8. 9.

ANNEX

I to APPENDIX A

d777")

ANNEX II to A-E4I ,IX

to eport on Regional Survey of 7taly

LST

OF $LILS

1.

Italy's position in the Central i1editerranen.

2.

Italy's percentege of Self Sufficiency in Disputed .2erritories in Continental Italy.

.u'r Essentials.

3.

-77
S1.1 06

9 .

\3 SICILY
No. j-O

WA R E S'NIALS PERCELNT OF SELF SU FlUNLY'


0 FOOD TJJFFS 2 O 7Z6 toa

IFoN AND 5FEL M AfNERY PETROLEUM I CHEMICALS COAL a IRON ORE

6LJO I- VAL AOr 5 TA 2-TYROL

No.

/- 10A

*mj&

I .

'X II 5 L I
r= NO -J /-/0-3

to A

,'-NDIX A

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