Due to the economic recovery from the Second World War, Italian industry is now back in the fray. As the Marshal Plan’s effects continue to impact positively the economy, our arms industry is now seeing returns on investment with the rapid expansion of the Italian Armed Forces and rearmament continuing at breakneck speed. The conflict in Eritrea is proving to be a crucially important flashpoint where our armed forces can adopt modern battle tactics. Representatives from the Italian military industry and the armed forces have routinely made trips to Asmara to observe the performance of their more advanced domestic equipment under battle conditions, resulting in quite favorable results. Lessons from Eritrea can best be summed up with the following points:

• Light tanks and armored cars continue to remain viable military assets in modern warfare. Despite the legal inability of FIAT-Ansaldo to pursue the development of heavier armored vehicles, advances in fast, multipurpose, tanks with a focus on ergonomics, communications, speed, and firepower present a successful niche for FIAT to rely on
• Artillery remains the king of battle, In an era of rapidly advancing technology, modern jet aircraft, main battle tanks, precision-guided bombs, and rockets, the artillery piece remains the basic and most important component of the common army. Thus ensuring adequate logistics and ammunition stockpiles as well as a great number of field artillery or rocket artillery components is the key to success.
• Radio, communications, reconnaissance, and intelligence remain vital assets in any military campaign
• Mechanization of infantry presents unmatched mobility of all military assets and allows for rapid deployment of troops
• Control of the airspace wins wars, air reconnaissance, close air support and tactical bombings of logistical lines are all key elements needed for victory on land.

Thus the following contracts have been handed out to the companies OTO Melara, FIAT, Ansaldo, Aermacchi, Agusta, Lancia, and Finnmechanica. These industries will mass-produce military equipment to help restore our stockpiles, modernize fielded equipment, and produce licensed equipment from the United States and the United Kingdom. A selection of research and development projects are laid out in the following:

OTO Melara Model 56 pack Howitzer

Mass: 1,290 kg

Length: 3.65 m

Barrel length: 1.47 m L/14

Width: 1.5 m

Height: 1.9 m

Crew: 7

Calibre: 105 mm

Breech: Vertical sliding-block

Recoil: Hydro-pneumatic

Rate of fire: 10 rounds/min

Muzzle velocity: 416.0 m/s

Maximum firing range 10,000 m

Next Generation Battle Rifle (Beretta)

Mass: 4.4 kg

Length: 1,095 mm

Barrel length: 491 mm

Cartridge: 7.62×51mm

Action: Gas-operated, rotating bolt

Rate of fire: 750 rounds per minute

Feed system: 20-round detachable box magazine

Sights: Rear aperture, front post

FIAT-Lancia FL350 Legion (APC)

Mass 12 t

Length 5 m

Width 2.54 m

Height 2.48 m

Crew 2 up to 9 troops

Armour 18 mm Rolled homogeneous armor

Weapon 1 M2 Browning

Weapon 2 Breda 30 LMG 12 smoke grenade launchers

Engine: Lancia inline eight cylinder internal combustion engine 160 hp

Power/weight: 14.5 hp/tonne

Suspension: 6x6 wheel, independent torsion bars

Range: 400 km

Speed: 72 km/h (off-road 32 km/h)

FIAT OF-20 Light Tank

Mass: 23 short tons

Length: 5.10 meters

Width: 3 meters

Height: 2.9 meters

Crew: 5

Armor: 10-38mm

Gun: Ansaldo Cannone da 90/53

Secondary: 1x .50 cal M2 Browning

2x M1919A4 Browning LMGs

Suspension: Torsion Bar

Engine: FIAT-240hp

Range: 100 kilometers

Speed: 40 kilometers an hour.