September 18, 1940 – Offices of Todt Organization, Berlin
Ambassador Alfieri sat calmly across for Director Todt. Todt looked at him with mild disgust. The suit the Italian wore had to be worth more than Todt’s own car. Still this meeting had been specifically set by Fuhrer himself and Todt could play the game as well as anyone. Todt smiled at the Ambassador and spoke, “My dear ambassador I appreciate your concern with the plight of the German worker. It is quiet true that most of our refineries designed for transatlantic trade are currently left with little to do. However it would seem that the end of Britain is only weeks away.”
Alfieri smiled back. “No doubt, no doubt Herr Todt. However despite the inevitability of your victory over England, it may not occur within this year, or perhaps even next? That means your refineries sit idle. Now as your allies we are well aware you have worked on agreements with Standard Oil to allow for the importation of oil into some of the occupied territories*. We think we can do quite a bit better than that. The oil coming from Grozny can still be exported.”
Todt replied “The English blockade would never let Soviet tankers dock in Germany…”
Alfieri interrupted, “No not Germany. But if the Reich was prepared to assist us in setting up refineries and to increase the capacity of those we have then England would be in no position to stop trade between two neutrals such as Russian and ourselves.” Todt despite himself betrayed a shocked look on his face. The Italian continued. “We could agree to supply both occupied and unoccupied France with refined product, eventually even the Dutch and the Belgians. That would remove a significant burden from your own government.” Todt nodded, his mind racing at the possibilities. “Of course some percentage of the trade might even make its way to the civil market in Germany. Slippage of that type is inevitable. But again the British won’t risk war over it. Our tankers, escorted by Soviet and Italian ships would be a powerful deterrent. I doubt the English would directly interfere. We have already spoken with the Soviets and they are quiet amenable to the idea. A good deal of their foreign trade is has been cut off by this war.”
“This would create a significant deficit in trade with the Reich.” Interjected the German.
“Well we have a solution for that as well” offered the Italian “As you know with the recent transfer of Marshal Badoglio to Corsica to take up the governorship, the Council has appointed some new officers to accelerate the modernization of the army. We feel that the spare industrial capacity of France and some of the other countries now in Germany’s ‘orbit’ could be put to good use equipping our own army.”
“Germany’s needs would of course supersede your own. We are at war.” Said Todt
“Of course, of course my dear man. We only want to make use of the surplus capacity. A good deal of French industry is idle now. We also are approaching the French about setting up or moving factories from France to Italy. Better that we control the production then the French eh?”
Todt was not as sure of that point. However he had more than a sneaking suspicion that the war might go on a while and access to oil was critical. He rose and walked around his desk. “I think we have the beginnings of an agreement here.”
November 10, 1940 – Meeting of the Grand Council, Palazzo Venezi, Rome
The formerly round table had been removed from the room and now a short oblong one stood in its’ place. Marshal Balbo sat at the head of the table flanked by the Council.
“I think it only proper that we give a welcome to the newest formal member of the Grand Council the new Inspector General of the Army General Berti, also the new head of our OVRA** the honorable Guido Leto and finally our dear Foreign minister who has earned his well-deserved promotion to Prime Minister of the Kingdom.”
After a smattering of applause, it was De Vecchi who spoke first. “I wonder if our new Prime minister might address the condition of our leader? So far as I know except for that brief show for Fat Herman no one has seen…”
Ciano interrupted, “I can assure you Cesare that my father-in-law continues to improve. He reads all of the council’s papers and those from my office. I think you should trust us that he can soon formally rejoin us at these meetings. If not by December, then certainly in the new year.” He smiled sweetly at De Vecchi. “We can’t risk a premature return of our leader so we have to carry on in his spirit.”
“Thank you my dear Count” stated Balbo “We have only a few points to discuss tonight then we may retire for a meal to celebrate the new lions of fascism. As you know the Germans have formally accepted our proposals to allow increase in oil refineries in Italy and to accept transshipments of the oil to Vichy and Flanders. They also have agreed to sell us surplus French equipment to rearm our own forces. General Berti is already accelerating the reorganization of our army. If you might address the more important issues general…”
Berti gathered up some papers and began to speak. “We have decided to return to civilian status some 600,000 conscripts*** and to pare the total number of divisions down by at least 30, which will become reserve divisions with only skeleton staff. The binary reorganization will be accelerated with the importation of guns and equipment from France. The new Inspector of the Armor will also incorporate captured French armor into our divisions pending the accelerated development of our own native tanks. The program will run in 4 six month phases. Phase one will see the standardization of artillery and increased deployment of mechanized support units into the first 30 frontline infantry divisions. The mobile divisions are slotted for increased transport and heavy arms, to be completed also within the first phase. Phase two will see to deployment of additional support units into existing divisions along with greater mobility. We hope to see the increased production of Italian artillery replace our reliance on purchased French and German stock. Additionally proto-type tanks for the armored division will enter testing with the goal of replacing the Char units that are now rearming our armor formations during phase 1. In phase three…”
General Bono held up his hand to speak, “This is all quite impressive General Berti, but so disruptive. You dismiss men just as we might need them, you cut divisions when….”
Berti glanced at Balbo who nodded curtly in the affirmative. “The current army is grossly inadequate for what we face in the near future. The Ethiopian and Spanish campaigns have gutted our formations and those in charge have failed to provide adequate leadership. It is almost criminal the shape the army is in. For now we need time and equipment more than simply manpower to deal with this crisis. Of course it is possible that some don’t see the need for such steps.”
Silence hung in the room. Bono answered slowly “You mistake my questions for a lack of enthusiasm my dear general.” He looked over at Balbo “Of course I agree with your ultimate goals I just was questioning some of your methods.” He smiled sweetly, “Do go on….”
Interlude and Explanation
(I include this section in part to explain and foreshadow what is coming in my next post). This is not AH put rather part of an account I found in Duce!, The Rise and Fall of Mussolini by Richard Collier. The books is actually a bit of a mess, difficult to read but is full of these interesting little stories)
Ristorante Italia, Ferrara – July 14, 1938
Marshal Balbo jammed his foot against the door of the restaurant and forced it open for his companion. Balbo noisily shouted that waiters should come and seat his companion and himself for a lunch. After some hesitation the staff scurried to obey. The manager looked at Balbo’s companion and nearly fainted. He walked up to the marshal. “Ah Marshal of course we are most grateful to have you here, but your companion….”
Balbo interrupted him “Do you mean the mayor. He is my friend. My close friend would you deny him a seat?”
The manager stammered “It is just that there have been some changes since you took up your post overseas, perhaps…”
Balbo stopped him “Listen to me you miserable little toad. I know well the law and who this man is. I chose to break bread with him and call him my friend. If you deny him a seat you deny me one and make me an enemy. Now is there a table or no?”
The pair was quickly shown the best table in the house.****
*In July of 1940 the Standard Oil Company of New Jersey agreed to supply Vichy and later even Nazi Germany with access to oil. In 1942 in our TL the head of a Standard Oil subsidiary (Standard UG Farben) name William Farish (from Texas) plead ‘no contest’ to a criminal conspiracy charge of dealing with the Nazis but Standard Oil got off with just $5,000 fine.
**Believe it or not the ‘Organization for the Surveillance and Stamping out of Anti-Fascism”
***Again an event that occurred in our TL in slightly different circumstances
****Renzo Ravanna the former mayor of Ferrara had only recently been replaced and put under a cloud thanks to the race laws of November 17, 1938. Balbo was having none of it. This lunch was the culmination of Balbo’s trip home from Libya. He had flown into Rome and paid a call on almost all the prominent Jews in Rome then invited the mayor to dine with him openly at lunch.
This was also one of the seeds of Balbo’s growing dissatisfaction with Il Duce. By the summer of 1940 the two men seemed to have settled into a degree of mutual distain.