1.
GV Christian Democrat Headquarters
0.08

2.
SV Pietro Nenni leads Socialist party members out of building and shakes hands with Martino (2 shots)
0.29

3.
SV Security men at gate
0.32

4.
SV Social Democrats arrive by car
0.37

5.
CU Christian Democrats sign
0.38

6.
CU PAN & ZOOM FROM Mario Tanassi TO other Social Democrats entering building (2 shots)
0.58

7.
SCU PAN Fanfani leaves building and drives away
1.15



Initials BB/1732 BL/MR/BB/1757



Script is copyright Reuters Limited. All rights reserved

Background: Italy's political crisis deepened on Saturday (19 October) when the Socialists presented a tough list of conditions for taking part in a new Centre-Left coalition government.

The Socialists revealed their tough stand during talks in Rome with Prime Minister-designate, Amintore Fanfani, the leader of the powerful Christian Democrats.

Signor Fanfani -- who accepted the mandate to try to form a new government last week -- had proposed a number of measures to resolve the country's economic crisis.

He was not expected to accommodate a Socialist demand for a guaranteed full year's pay for redundant workers.

The atmosphere at the Christian Democrat headquarters was reported to be "rather gloomy" after the departure of the Socialist delegation under Francesco de Martino and Pietro Nenni. Signor Nenni also proposed a "social contract" between the government and unions, similar to that achieved by the Labour Party in Britain.

Signor Fanfani later saw the Social Democrats, who precipitated the present crisis by criticising the Socialist for supporting the Communist party. Squabbling over economic policy and differing attitudes to the Communists led to the fall of Signor Mariano Rumor's Centre-Left coalition on 3 October.

After Saturday's talks, Signor Fanfani said he would hold no further meetings until Tuesday (22 October), when he would reply to the Socialists' conditions for joining a coalition.

SYNOPSIS: The next to arrive were the Social Democrats who helped bring down the last Centre-Left coalition government by criticising the Socialists for supporting the powerful Communist party. The Social Democrats were lade by Mario Tanassi. They supported the economic programme proposed by Signor Fanfani. But the said the Socialist demands had made the situation difficult.

Signor fanfani was not pleased with the way the talks had gone. He was given the mandate to form a new government only last week, and things had appeared to be moving forward steadily. He said he would wait a few days before replaying to the tough Socialist demands.