ITALY: Red's Labor Lost

Slowly the Communists are losing what was once a near stranglehold on Italian labor. In 1949 the CGIL (Communist-run labor federation) mustered more than 90% of Italy's union workers; today the Red membership has declined to about 60%. This hopeful trend is being accelerated by a new, hardheaded policy of the U.S. Embassy in Rome, through its control of offshore procurement in Italy (the equipping of NATO forces through U.S. purchases abroad).

Last January the Embassy decided to place its offshore contracts (amounting to $470 million in the past three years) on a...

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