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ACTION EUR-12
INFO OCT-01 ISO-00 CIAE-00 DODE-00 INR-07 NSAE-00 PA-01
USIA-06 PRS-01 SP-02 EB-07 TRSE-00 OMB-01 /038 W
--------------------- 020276
R 071530Z MAY 76
FM AMCONSUL MILAN
TO AMEMBASSY ROME
INFO SECSTATE WASHDC 4710
LIMITED OFFICIAL USE MILAN 1099
E.O. 11652: N/A
TAGS: ECON, PINT, IT
SUBJECT: CABLE FROM BERGAMO
1. SUMMARY: ONCE ISLAND APART FROM MAIN STREAMS OF ITALIAN
POLITICAL AND ECONOMIC PROBLEMS, DC STRONGHOLD OF BERGAMO
PROVINCE, ON NORTH RIM OF PO VALLEY, IS BEING UNDERMINED BY
GROWING LEFTIST STRENGTH. BERGAMASCHI DC HOWEVER, ARE NOT
DEMORALIZED AND MAY EVEN BE OVERLY OPTIMISTIC. SURFACE TRAN-
QUILLITY IS DISTURBED BY OCCASIONAL OUTBURSTS OF VIOLENCE BY
EXTRAPARLIAMENTARIANS. AIR OF ECONOMIC CRISIS HAS
SUBDUEDUNION MILITANCY.
2. EFFECTS OF RECESSION ON LOCAL ECONOMY MODERATED BY
DIVERSITY OF INDUSTRY WHICH PRODUCES SPECTRUM OF PRODUCTS FROM
LARGE DIAMETER SEAMLESS PIPE LARGELY FOR OIL INDUSTRY TO
TELEVISION SETS. THERE ARE A FEW FIRMS WITH THOUSANDS OF
EMPLOYEES, BUT MAJORITY OF BERGAMASCHI WORK
FOR SMALL AND MEDIUM-SIZED COMPANIES WHICH ARE DOING ALL
RIGHT, AS ARE MERCHANTS AND ARTISANS. FOR AGRICULTURE, 1975
WAS RECORD YEAR. IN GENERAL, PROVINCIAL ECONOMY SLUGGISH,
BUT HAS RECOVERED SLIGHTLY FROM 1975.
3. PROBLEMS CITED BY LOCAL SOURCES HAVE FAMILIAR RING. LOCAL
ENTREPRENEURS AVOIDING NEW INVESTMENT BECAUSE OF FEAR OF
NATIONAL POLITICAL SITUATION. PORTION OF LOCAL INDUSTRY
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DEPENDENT UPON EXPORTS STILL AWAITING UPTURN IN EUROPEAN
MARKETS. CONSTRUCTION INDUSTRY IS IN CRISIS, BUT SKILLED
WORKERS, LIKE PLASTERERS AND PLUMBERS, HARD TO FIND DUE TO
IMMOBILITY OF LABOR. UNIONS INSIST THAT STRUGGLING FIRMS
RETAIN UNNEDED WORKERS WHILE MORE PROSPEROUS COMPANIES GO
BEGGING. SHORT WORK WEEKS ARE COMMON. SOME 33,000 BERGAMASCHI
COMMUTE TO JOBS IN MILAN, MANY RETURNING WITH IDEOLOGY
ACQUIRED FROM THEIR PCI MILANESE CO-WORKERS, ACCORDING TO
LOCAL DC LEADERS. LIQUIDITY IN LOCAL BANKS IS HIGH, LARGELY
DUE TO HIGH PERSONAL SAVINGS.
4. CONTINUING SOFTNESS OF LOCAL ECONOMY HAS CAUSED UNIONS TO
BECOME MORE CONCERNED WITH PRESERVATION OF JOBS, LESS WITH
HIGHER PAY OR ADDITIONAL BENEFITS, ACCORDING TO UIL PROVINCIAL
SECRETARY. HE IS YOUNG, MODERATE PSDI MEMBER WHO APPEARS TO
HAVE FAIR GRASP OF ECONOMIC REALITIES. HE SAID THREE MAJOR
UNIONS ARE NOW COOPERATING WITH ONE ANOTHER AND THEY HAVE
BROUGHT EXTRAPARLIAMENTARIAN SHOP STEWARDS UNDER CONTROL.
HE CITED CASE OF LOTTA CONTINUA FORCES WHO PROTESTED CONDITIONS
OF CHEMICAL WORKERS' CONTRACT SIGNED RECENTLY, IN OPPOSITION
TO MAJORITY OF WORKERS AND UNION LEADERS. WHEN THEY TRIED TO
INCITE EMPLOYEES OF LARGE BERGAM PLANT TO VIOLATE CONTRACT,
THEY WERE ROUGHED UP BY OTHER WORKERS. RADICAL ELEMENT
AMONG SOCIALISTS, HE CLAIMED, HAVE CALMED DOWN, AND LABOR
CONFRONTATIONS SUCH AS LAST YEAR'S SHOOTING OF GERMAN TECHNICIAN
AT LARGE FOREIGN OWNED ELECTRONICS PLANT ARE PAST. (THAT
INCIDENT CAUSED PARTIAL STAFF TRANSFER TO GERMANY, CAUSING
FEARS OF PLANT CLOSURE THAT INDUCED RETREAT FROM VIOLENT ACTION.)
UIL SECRETARY SAID LARGE LOCAL INDUSTRIALISTS, ESPECAILLY
NEW CONSERVATIVE PESENTI GROUP, ARE UNWILLING TO TALK WITH
UNIONS EXCEPT DURING CONTRACT NEGOTIATIONS WHILE SMALLER FIRMS
MUCH MORE OPEN.
5. THEME OF SOCIAL AGITATION MENTIONED BY UIL SECRETARY ECHOED
BY PRESIDENT OF CHAMBER OF COMMERCE WHO SAID BERGAMO HAS LONG
TRADITION OF HOTHEADEDNESS. PREFECT, WHOSE ANSWERS GENERALLY SO
GUARDED AS TO BE MEANINGLESS, DID ADMIT TO SLIGHT WORRY ABOUT
PUBLIC ORDER IN BERGAMO. HE STATED ANY DISORDER WOULD BE
PREPLANNED, NOT SPONTANEOUS. HE CLAIMED GROUPS GIVEN TO VIOLENCE
ARE SMALL MINORITY OF 3,000 TO 4,000 PEOPLE. DC MAYOR OF
BERGAMO COMPLAINED ABOUT VIOLENCE OF EXTRAPARLIAMENTARIANS.
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CHAMBER OF COMMERCE HEAD COMMENTED MANY PARENTS SENDING THEIR
CHILDREN TO PRIVATE SCHOOLS TO AVOID POLITICAL PROTESTS IN
PUBLIC SCHOOLS.
6. ALL CONTACTS INDICATED DC FIRMLY IN CONTROL OF CITY AND
PROVINCE. IN JUNE 1975 DC ACTUALLY INCREASED SLIGHTLY ITS SHARE
OF VOTE (FROM 47.4 PERCENT TO 47.9) THOUGH LEFT GAINED MORE
(PCI UP BY 5.4 PERCENTAGE POINTS AND PSI BY 2.3). ON PRO-
VINCIAL LEVEL, DC VOTE DROPPED FROM 58.8 PERCENT TO 55.3,
WHILE PCI AND PSI GAINED 3.7 PERCENTAGE POINTS EACH. UIL
PROVINCIAL SECRETARY SAID LOCAL DC HAD MADE NO CHANGES SINCE
LAST JUNE. HE ADDED THAT DC WOULD NONETHELESS TAKE AWAY VOTES
OF THREE SMALL PARTIES IN NEXT ELECTIONS. CHAMBER OF COMMERCE
PRESIDENT ALSO SAID LOCAL DC HAD MADE VIRTUALLY NO CHANGES SINCE
LAST ELECTION. PROBLEM IS FACTIONALISM AND UNWILLINGNESS TO COM-
PROMISE IN SPITE OF LIP SERVICE TO PARTY UNITY. SOME SIGNS
OF CHANGE BEGINNING TO APPEAR, PARTICULARLY IN LOCAL LEADERSHIP.
PUBLICITY GIVEN NATIONAL SCANDALS, HE SAID, DOES NOT REFLECT
LOCAL RELAITY. BERGAMO LEADERSHIP IS CAPABLE AND HONEST.
PRESIDENT HIMSELF WILLING TO HAVE NEW LOCAL REPRESENTATIVES IN
ROME, BUT DOESN'T FORESEE IT HAPPENING. HE EXPECTS DC TO
REACH AGREEMENT WITH PCI IN JUNE ON NATIONAL LEVEL, BUT SAID
SUCH AGREEMENT WOULD HAVE LITTLE EFFECT IN BERGAMO, GIVEN
LOCAL DC STRENGHT. DC REGIONAL SECRETARY, IMAGE OF ELEDER
STATESMAN, SAID HE IS OPTIMISTIC ABOUT DC ABILITY TO SURVIVE
EARLY ELECTIONS, WHICH HE FAVORS, PROVIDED PARTY WAGES STRONG
ANTI-COMMUNIST CAMPAIGN OF 1948 TYPE. A ZACCAGNINI BACKER,
HE WAS DISAPPOINTED IN FANFANI ELEVATION TO PARTY PRESIDENCY.
HE WOULD LIKE EVEN STRONGER STATEMENTS FROM US ABOUT NEGATIVE
INTERNATIONAL EFFECTS OF PCI ENTRY INTO GOVERNMENT.
7. WHILE DC HAS NOT LOST MUCH POWER LOCALLY, PCI AND PSI HAVE
GAINED. MOREOVER, TEMPORARY LABOR PEACE, RESULT OF RECESSION,
PROBABLY DESTINED TO VANISH WHEN BETTER TIMES APPEAR. BERGAMO,
IN OTHER WORDS, SEEMS ON LEFTWARD COURSE, THOUGH MOVEMENT NOT
AS RAPID AS ELSEWHERE.FINA
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