Eden was a passionate supporter of the Conservative Party and a patriot. He was convinced that a Labour Party victory in the General Election would be a costly mistake for Great Britain. This spy dossier could not be acted on until the election was over.
He offered his sincere thanks to the General and the Baron for bringing this matter to his attention, and for keeping it confidential. It would be looked into immediately.
Brauchitsch spoke again. “There is one more thing, Sir Anthony. Our agent has also discovered that there are several of your Labour Members of Parliament acting under Moscow’s control. They are committed communists dancing to the Kremlin’s tune. Unfortunately we have no names or actual numbers.”
This was not exactly news to Eden, but he loathed the thought of other nations knowing this. The Socialists in Britain had always been prone to communist penetration and propaganda. Again he thanked the two Germans for the information they had imparted. He made his exit as fast as he politely could.
The following day the Germans flew back to Berlin with Lufthansa, the German national airline.
The King of Italy and his Prime Minister were in conference with General von Brauchitsch, Baron von Altendorf and Hjalmar Schacht. The former had asked for a meeting to discuss ‘mutual concerns’, a euphemism for Italy needing financial assistance and wanting to join the European Alliance.
The Germans listened politely to everything told them, before launching a well prepared and comprehensive list of comments and questions at the Italians. Even though the Alliance leadership would dearly like to see Italy within the fold, they were not convinced that that country would be a suitable member of the alliance as things stood at this particular moment in time.
Over a two hour session they bluntly told the Italians they had to get their house in order. The main problem areas were seen to be poor economic and financial planning, and overall management of the country. There was an urgent need for social reform. Too much money was being spent on their ineffective military forces, and there was a lack of economic justification for having an African empire. Their sole motivation for an empire in Africa had been a desire for imperial glory, not for economic assets. This was Mussolini’s legacy.
A further problem was that their subject country of Albania was a hotbed of communism backed by neighbouring Yugoslavia’s own underground communist movement.
Lastly, Italy’s armed forces were ill equipped, poorly trained, badly led and suffered from low morale.
In the end a reluctant King Victor Emmanuel recognised the truth in everything he had been told. Enthusiastically backed by Marshall Badoglio, he gave a firm undertaking, as a first step, that his country would withdraw from Ethiopia, Eritrea and Somalia. These territories were known to be a drain on Italy’s economy. In the case of Libya, with which Italy had a longer standing relationship, a Royal Commission would be appointed to conduct an in-depth study to ascertain if there was any benefit to Italy in retaining it as a colony.
A military commission would initiate a complete review of the three branches of the armed forces. The aim would be for a smaller but more powerful and streamlined military. A military that would fit comfortably into the European Alliance.
The Grand Council of Fascist Government would be dissolved immediately upon his return to Italy. The King, together with Marshall Badoglio, would govern directly for the immediate future. New, non-fascist, competent ministers would be appointed to breathe life into the economy and accelerate social reforms.
The police, aided by the armed forces would conduct a purge of communists in Albania. Simultaneously, new investment and practices would be introduced there to expand agricultural and industrial production, thus improving the economy.
In return for these commitments from the Italian King, Germany pledged to favourably consider financial assistance, but only when they saw signs that the promised steps were being introduced. The Italians were known to be a people prone to procrastination, and the Germans would not tolerate it if it was their money that was on the table. They also offered help in the form of economists, agricultural, industrial and other experts who could be seconded to Italy during its transitional period.
Germany would also assist them by threatening Yugoslavia with economic retaliation if they did not put a stop to their banned communist agitators interfering in Albania.
Von Altendorf asked the Italians if the fact that nearly seventy percent of Albanians were Muslims bothered them in any way? Would this be a future problem?
The King replied that he believed the majority of Albania’s population would be loyal to the crown once the communist influence was eliminated and the benefits of an investment programme and improved economy started to be seen and felt.
The Germans could not, or would not, offer more. It was now up to the Italians to prove that they had what it takes to reform or restructure their dysfunctional state.
The King and Prime Minister were both disappointed and relieved at the same time. They were leaving without a cheque in their hands, but they had the incentives to start cleaning up the mess that Mussolini had left them with. They could present everything as good news for Italy! They cheered up a little.
The General Election was over and the results counted. The new Prime Minister had been sworn in. The final tally of votes was unexpected. In the last election in 1935 the Conservative Party had gained the most seats in Parliament with forty seven percent of the votes cast in their favour. They had had a large majority to work with.
In this election there was a swing towards the Labour Party which had surprised and stunned Churchill. There were several reasons advanced for the swing. There was widespread fear among the electorate of a return to the remembered high unemployment of the 1930s, and Labour had successfully implanted the idea that socialist planning would be a more efficient way to run the economy. Labour also ran on the false promise to create full employment. They also undertook to establish a ‘free’ National Health Service and a cradle–to–grave welfare state. Impossible promises! A typical example of politicians placing more emphasis on winning votes than on good governance!
A further blow to the Conservative Party was the memory of their 1930s policy of appeasement to Adolf Hitler which had been practiced by Winston Churchill’s predecessors, and which had eventually led to war.
The net result was that the previous large Conservative majority in the House of Commons was greatly reduced to a majority of just six.
One of the MPs who lost his seat was James Blackstone.
The first sitting of the Italian Senate was over. Four weeks earlier the Grand Council had been dissolved. Nobody would miss them. While the fascist elements within the country still retained some support, nearly ninety percent of the new Senators had no proven links with fascism, and the other ten percent had never been committed fascists. The new government was untainted.
There was a preponderance of technocrats rather than politicians among the Senators. The Prime Minister and the King retained the power to approve or reject all proposed laws and policies. Each and every Senate applicant had been personally interviewed by these two, who had satisfied themselves as to their abilities and motivation. All understood the urgent priorities that faced them.
A lot had been accomplished in their first session. The withdrawal of Italian forces from the African territories other than Libya had been approved. A committee was already established and had drawn up plans for an orderly handover of power in the territories. Great Britain had reluctantly agreed to merge Italian Somaliland and Eritrea with British Somaliland. The deposed Emperor of Ethiopia, Haile Selassie, was invited back from Britain where he had been in exile since his country’s occupation by Italy. He would resume his dictatorial rule in that country. A core of Italian administrators and advisors would remain behind to assist him in modernising his feudal country. Troop withdrawals had already started and would be completed within six months. A Royal Commission on the future of Libya had been appointed and instructed to submit recommendations by no later than October.