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ACTION EUR-12
INFO OCT-01 ISO-00 CIAE-00 DODE-00 PM-04 H-02 INR-07 L-03
NSAE-00 NSC-05 PA-01 PRS-01 SP-02 SS-15 USIA-06
COME-00 EB-07 LAB-04 SIL-01 OPR-02 OMB-01 TRSE-00
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R 301635Z APR 76
FM AMCONSUL MILAN
TO AMEMBASSY ROME
INFO SECSTATE WASHDC 4696
CG SETAF VICENZA
LIMITED BFFICIAL USE SECTION 1 OF 2 MILAN 1040
E.O. 11652: N/A
TAGS: PFOR, PINT, PGOV, ECON, IT
SUBJECT: CABLE FROM VICENZA
1. SUMMARY. DC BASTION OF VICENZA COPING REASONABLY WELL
WITH EVILS OF DAY. ECONOMY STARTING TO RECOVER NICELY AND,
THOUGH LABOR AND OTHER DEMONSTRATIONS OCCUR IN CITY,
VIOLENCE RARELY RESULTS. WHILE DC HAS ABSOLUTE MAJORITY OF
VOTE IN PROVINCE, PARTY HURT BY SPLIT INTO TWO LOCAL
FACTIONS THAT COULD DAMAGE JUNE ELECTORAL PERFORMANCE.
NEITHER CHURCH NOR CISL--VICENZA'S TOP UNION--SUPPORTING DC
TO PARTY'S SATISFACTION. COMUNIONE E LIBERAZIONE PRESENT
BUT WEAK. SOCIALISTS SAY THEY WOULD BECOME DC PARTNER IN
LOAL GOVERNMENT ONLY IF PCI SUPPORT EXPLICITLY REQUESTED
AS WELL. US ARMY BASE, STILL HIGHLY POSITIVE INFLUENCE
ON LOCAL ECONOMY, ACCEPTED AS PART OF LANDSCAPE. END
SUMMARY.
). EXECUTIVE OFFICER AND LOCAL POLITICAL SPECIALIST
VISITED VICENZA APRIL 22-23, CALLING ON MAYOR, DC AND
PSI PROVINCIAL SECRETARIES, CISL AND UIL HEADS, CASSA
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DI RISPARMIO PRESIDENT AND MANAGER, AND DIRECTOR S OF
INDUSTRIAL ASSOCIATION AND CHAMBER OF COMMERCE.
3. GOOD NEWS IN VICENZA CONCERNS ECONOMY. PRODUTION
DROPPED 14 PERCENT IN 1975. THIS YEAR, HOWEVER, IS
UPSWING, WITH FOUR PERCENTAGE POINT RISE IN FIRST QUARTER
OVER LAST QUARTER OF 1975, WHEN TURNAROUND HAD ALREADY
BEGUN. PLANT CAPACITY UTILIZATION UP FRO 71 PERCENT LAST
YEAR TO 75 PERCENT TODAY, EVEN HIGHER IN IMPORTNATN
SECTOR, AMONG HARDEST HIT IN 1975, HAS INCREASED PRODUCTION
NINE PERCENT AND SALES 18 PERCENT SO FAR IN 1976. FOOD,
CHEMICAL, AND WOOD INDUSTRIES ALSO RECOVERING NICELY. AS
FOR EMPLOYMENT SITUATION, GOVERNMENT-SUBSIDIZED MANHOURS
SHOT UP IN 1975 (TO ONLY 4.3 PERCENT OF TOTAL, HOWEVER)
BUT ARE DOWN FOR FIRST QUARTER OF 1976. INTERNAL DEMAND
IN PROVINCE IS EXPECTED TO RISE FIVE PERCENT THIS YEAR.
4. ECONOMIC PROBLEMS INCLUDE POOR STATE OF CONSTRUCTION
SECTOR, WHERE NO UPSWING IN SIGHT, AND OF PAPER, PRINTING
AND MECHANICAL SECTORS.
5. DC IN VICENZA NOT PROFITING POLITICALLY FROM
ECONOMIC UPTURN. HAVING TAKEN 5-6 PERCENTAGE POINT LOSS
TO 59 PERCENZQWMVINCEWIDE ON JUNE 15 LAST, PARTY MAY
SUFFER FURTHER SETBACK OF SAME PROPORTIONS IN NEXT
ELECTIONS, AT LEAST ACCORDING TO WORRIED PROVINCIAL
SECRETARY. (SOCIALISTS DISAGREED, FEELING DC WOULD LOSE
LITTLE OR NOTHING NEXT TIME AROUND COMPARED TO JUNE
1975.) MAIN REASON FOR PROVINCIAL SECRETARY'S PESSIMISM
IS THAT INFIGHTING BETWEEN FORCES OF HOMETOWNER FOREING MINISTER
RUMOR AND UPSTART MINISTER BISAGLIA IS DAMAGING PARTY
UNITY AND CONSUMING ENERGY MORE USEFULLY DIRECTED
ELSEWHERE. (SECRETARY HIMSELF IS FORMER RUMOR PROTEGE
PASSED INTO BISAGLIA CAMP. ALTHOUGH BISALIA HAS MOUNTED
FIRST EFFECTIVE CHALLENGE TO RUMOR'S RULE LOCALLY, RUMOR
STILL HAS HIS PEOPLE--LICE CASSA DI RISPARMIO PRESIDENT
FIORALPINO CHIODI AND CHAMBER OF COMMERCE HEAD LORENZO
PELLIZZARI--SPRINKLED LIBERALLY THROUGHOUT PROVINCE.
MOREOVER, IT WAS RUMOR'S NEWLY-FOUND ALLY ZACCAGNINI
RATHER THAN BISAGLIA-SUPPORTED FORLANI WHO WAS MAJORITY
PREFERENCE AT VENETO DC CONGRESS ON FEBRUARY 28-29,
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VICTORY OF SORTS FOR RUMOR. SO, ALTHOUGH MILAN OBSERVERS
COUNTED RUMOR OUT FOLLOWING HIS RECEPTIMN AT DC NATIONAL
CONVENTION, HE IS STILL A POWER--ALBEIT A WANING ONE--ON
HIS HOME TURF.) BOTH CISL AND SOCIALIST REPRESENTATIVES
AGRSED INTERNAL DIVISIONS HURTING DC. ANOTHER FLAW IN
LCAL DC, SAID PROVINCE SECRETARY, IS PARTY'S INFLUENCE
IN SCHOOLS AND FACTORIES. HE MIGHT HAVE ADDED, BUT
DIDN'T, THAT GROUP OF DC LEFTISTS LED BY RADICAL DEPUY
CARLO FRACANZANI IS THORN IN SIDE OF PARTY REGULARS.
6. DC SECRETARY SAID PARTY RENEWAL GOING FORWARD
DESPITE THESE OBSTACLES. HE CALIMED THAT PARTY--ON
JUNE 15 AND AFTER--HAS REPLACED SOME 60 PERCENT OF
COUNCILMEN PROVINCE-WIDE. LOCAL DC ALSO TRYING, HE
SAID, TO CHAGE PARTY OFFICERS AND TO PRESENT SOME NEW
CANDIDATES FOR SENATE AND LOWER HOUSE LITSS. SOCIALISTS
AND UIL REPRSENTATIVES, NOT SURPRISINGLY, ACCUSED DC
OF LACK OF OPENNESS AND DOUBTED PARTY'S ABILITY TO
ACHIEVE GENUINE RENEWAL.
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ACTION EUR-12
INFO OCT-01 ISO-00 CIAE-00 DODE-00 PM-04 H-02 INR-07 L-03
NSAE-00 NSC-05 PA-01 PRS-01 SP-02 SS-15 USIA-06
COME-00 EB-07 LAB-04 SIL-01 OPR-02 OMB-01 TRSE-00
/074 W
--------------------- 031141
R 301635Z APR 76
FM AMCONSUL MILAN
TO AMEMBASSY ROME
INFO SECSTATE WASHDC 4697
CG SETAF VICENZA
LIMITED OFFICIAL USE SECTION 2 OF 2 MILAN 1040
7. CHURCH IN VICENZA IS TOO UNDISCIPLINED FOR TASTES
OF DC PROVINCIAL SECRETARY, WHO COMPLAINED THAT OSOME
YOUNG PRIESTS LINE UP WITH DEMONSTRATORS AGAINST DC AND
THAT BISHOP--SOFTER IN THSE MATTERS THAN HIS PREDECESSOR--
DOES NOTHING TO BRING THEM INTO LINE. SECRETARY AD
SIMILAR CRITICISM OF CISL. UNIO, HE SAID, IS MORE
DEMOGOGIC THAN CGIL AND DOES OT COOPERATE WITH DC.
(CISL RECOGNIZED BY ALL AS LARGEST UNION IN VICENZA BY
FAR. ITS RELATIONS WITH CGIL AND UIL SAID TO BE POOR.)
8. COMUNIONE E LIBERAZIONE EXISTS IN VICENZA--BUT ONLY
JUST. DC SECRETARY AND UIL HEAD AGREED THAT GROUP IS
WEAK LOCALLY, AND UNDOUBTEDLY DUE TO ABSENCE OF UNIVERSITY.
9. SOCIALITS UNIMPRESSIVE. WITH 6 OF 50 SEATS IN CITY
COUNCIL AND 3 OF 30 IN PROVINCE, THEY SEEM LIMITED TO
CRITICIZING DC. PSI PROVINCIAL SECRETARY SAID THAT
SOCIALISTS WOULD SERVE IN DC GOVERNMENTS AT LOCAL LEVELS
ONLY IF THEY ENJOYED EXPLICIT SUPPORT OF PCI. AS FOR
PSDI AND PLI, EVERYONE EXPECTS THEM TO LOSD VOTES IN
VICENZA IN NEXT ELECTIONS. OF SMALL PARTIES, ONLY
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REPUBLIANS LIKELY TO GAIN.
10. PCI TRAILS FAR BEHIND DC IN LOCAL GOVERNMENT COUNCILS
(9 OF 50 SEATS AT CITY LEVEL, 4 OF 30 AT PROVINCE, EVEN
AFTER SIZEABLE GAINS LAST YEAR.) PARTY DOING WELL ENOUGH,
HOWEVER, TO UNSETTLE CONSERVATIVE ELEMENTS IN PROVINCE.
INDUSTRIAL ASSOCIATION HEAD ILLUSTRATED UNDESIRABLE TURN TO
LEFT BY CITING RECENT PCI/PSI STATEMEN ALLING FOR CITY
COUNCIL RESHUFFLE THAT WAS ALSO SIGNED BY PRI* STROM WARMNGS
SIMILARLY RAISED BY CASSA DI RISPARMIO'S ELDERLY PRESIDENT
CHIODI. HE LAMENTED COUNTRY'S GIVING VOTE TO 18 YEAR OLDS,
WHO TEND TO VOTE LEFT, AND SAID HE FEARED LOCAL DC'S
UNPREPAREDNESS WOULD RESULT IN FURTHER LOSSES. PC IS
INCREASING ECONOMIC PENETRATION IN PROVINCE AS SHOWN BY
RECENT PCI REQUEST FOR LAND TO BUILD CO-OP, ACCORDING TO
DC SECRETARY AND INDUSTRIAL ASSOCIATION HEAD.
11. LOCKHEED REVELATIONS WERE SOURCE OF WORRY FOR DC
INTERLOCUTORS. THEY ECHOED CONCERN HEAD IN
OTHER PROVINCES THAT SCANDAL REPORTS HAVE SERIOUSLY
DAMAGED DC IMAGE NATIONWIDE. CASSA DI RISPARMIO PRESIDENT
ADDED THAT US COULD DO SOMETHING POSITIVE FOR ITALY BY
INCREASING IMPORT ORDERS FROM HERE AND LEANING ON FRIENDS
TO DO SAME.
12. US ARMY BASE DID NOT COME UP IN DISCUSSIONS EXCEPT
WITH MAYOR. HE PRAISED ECONOMIC BENEFITS AMERICAN SOLDIERS
BROUGHT TO CITY, AS LEAD-IN, HOWEVER, TO ASK
IF WE COULD HELP FACILITATE LOANS TO CITY TO RENOVATE HOUSING
IN CITY CENTER--HOUSING WHICH PRESENCE OF OUR
TROOPS UNFORTUNATELY MADE DEARER AND SCARCER. MAYOR'S
GAMBIT SEEMS TO HAVE BEEN MERELY TO GET US TO SOLVE ONE OF
HIS MINOR PROBLEMS--NO ONE ELSE SPOKE OF SCARCUTY OF
HOUSING--AND CONCLUSION REMAINS THAT US MILITARY AND
CITIZENS OF VICENZA CONTINUE TO LIVE IN PEACE WITH ONE
ANOTHER.
13. VICENZA, THEREFORE, IS STILL DC FORTREESS THOUGH IT
RISKS HAVING ANOTHER WINDOW OR TWO BROACHED IN NEXT
ELECTIONS. IMMEDIATE NEED IS FOR AT LEAST TEMPORARY
HEALING OF RUMOR-BISAGLIA SPLIT AND OF THAT BETWEEN
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LEFT WING ELEMENTS AND REST OF PARTY. IF DC AT ROME
LEVEL HELPS BY SHOWING EITHER THAT LEADERS ACCUSED OF
CORRUPTION ARE INNOCENT OR THAT PARTY IS WILLING TO
CLEAN OWN HOUSE, VICENZA DC MAY PERFORM BETTER AT
ELECTION TIME THAN ITS PESSIMISTIC PROVINCIAL SECRETARY
NOW PREDICTS.FINA
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