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PAGE 01 ROME 18780 241307Z
44
ACTION EUR-12
INFO OCT-01 ISO-00 AID-05 CIAE-00 COME-00 EB-07 FRB-01
INR-07 NSAE-00 USIA-15 TRSE-00 XMB-04 OPIC-06 SP-02
CIEP-02 LAB-04 SIL-01 OMB-01 DODE-00 PM-04 H-02 L-03
NSC-05 PA-02 PRS-01 SS-15 /100 W
--------------------- 021755
R 241233Z DEC 75
FM AMEMBASSY ROME
TO SECSTATE WASHDC 4897
INFO AMCONSUL MILAN
AMCONSUL NAPLES
AMCONSUL PALERMO
AMCONSUL FLORENCE
AMCONSUL GENOA
AMCONSUL TRIESTE
AMCONSUL TURIN
US MISSION EC BRUSSELS 6776
UNCLAS ROME 18780
E.O. 11652: N/A
TAGS: ECIN, EINV, EGEN, IT
SUBJECT: CABINET APPROVES DRAFT LAW FOR SOUTHERN DEVELOPMENT
REF: ROME A-540, 11/21/75
1. GOI CABINET DECEMBER 23 APPROVED MAJOR COMPONENT OF
MEDIUM-TERM PROGRAM COVERING AID FOR THE DEVELOPMENT OF
SOUTHERN ITALY (MEZZOGIORNO). PRESS REPORTS INDICATE DRAFT
MEASURE, WHICH NOW GOES TO PARLIAMENT FOR DEBATE AND APPROVAL,
CALLS FOR FIVE-YEAR INVESTMENTS TOTALING 16,000 BILLION LIRE
($23 BILLION) TO BE UNDERTAKEN ACCORDING TO A FIVE-YEAR
PLAN TO BE DRAFTED BY THE INTERMINISTERIAL COMMITTEE FOR
ECONOMIC PLANNING (CIPE).
MAJOR ELEMENTS:
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(A) RESPONSIBILITY FOR LOCAL- AND REGIONAL-ORIENTED
PROJECTS WILL BE TRANSFERRED TO REGIONAL GOVERNMENTS
FROM EXISTING GOI SOUTHERN DEVELOPMENT AGENCY (CASSA PER
IL MEZZOGIORNO), WHICH WILL BE RESPONSIBLE FOR REALIZATION
OF INDUSTRIAL INCENTIVE PROGRAM AND PROJECTS OF INTER-REGIONAL
OR NATIONAL INTEREST;
(B) INDUSTRIAL INCENTIVES WILL BE AIMED AT JOB CREATION THROUGH
SUBSIDIES FOR EACH NEW JOB CREATED. AIM IS TO STIMULATE
SMALL- AND MEDIUM-INDUSTRY;
(C) CREATION OF PARLIAMENTARY COMMITTEE TO OVERSEE MEZZOGIORNO
DEVELOPMENT; AND
(D) COORDINATION OF MEZZOGIORNO PROJECTS WILL BE ASSIGNED TO
PROPOSED COMMISSION OF PREDIDENTS OF THE REGIONS.
2. EMBASSY COMMENT: GOI-DRAFT PLAN FALLS SHORT OF CHANGES
DESIRED BY MAJOR CRITICS, PARTICULARLY COMMUNIST PARTY (PCI),
BUT REPRESENTS CONSIDERABLE MOVEMENT FROM SIMPLE DEFENSE OF THE
STATUS QUO. MEASURE WILL NOW BE DEBATED BY PARLIAMENT, BUT IF
GOI HAS DONE ITS HOMEWORK, PLAN SHOULD BE APPROVED
SUBSTANTIALLY UNCHANGED.VOLPE
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