Foreign Relations of the United States: Diplomatic Papers, 1945, General: Political and Economic Matters, Volume II

Council of Foreign Ministers File: Lot M88: CFM London Documents

Memorandum by the United Kingdom Delegation to the Council of Foreign Ministers ⁷²

CFM(45) 3

London, 12 September, 1945.

Draft Heads of Treaty With Italy

preamble

[Here insert States at war with Italy and end “hereinafter referred to as the Associated Powers.”]⁷³ of the one part.

and Italy

of the other part;

Whereas Italy under the Fascist Regime became a party to the Tripartite Pact with Germany and Japan, and in 1940 declared a war of aggression and became involved in war with all the Associated Powers; and

Whereas on the 25th July, 1943, in face of the pressure of military events the Fascist Regime in Italy was abolished and Italy surrendered unconditionally and accepted terms of Armistice signed on the 3rd and 29th September; and

Whereas after the said Armistice Italy furnished armed forces which participated in the war against Germany and declared war on Germany as from the 13th October, and thereby became a co-belligerent against Germany; and

Whereas the Associated Powers and Italy are now both desirous of concluding a Treaty of Peace, which will settle questions still outstanding between them as a result of the events hereinbefore recited, and form the basis of cordial relations of amity between them;

Have accordingly appointed as Plenipotentiaries for this purpose:—

part i—international relations

1. Italy’s candidature for membership of the World Organisation to be supported by the Associated Powers. Italy to co-operate with the Associated Powers and to recognise and accept the arrangements made by them for the restoration of general peace.

2. Italy to agree to the arrangements agreed by the United Nations for the liquidation of the League of Nations and the P.C.I.J.⁷⁴

3. (a) The Associated Powers, as soon as they are satisfied of Italy’s willingness and ability to carry out the obligations involved, will support Italy’s application to become a member of any organisation established or whose establishment is already contemplated by the United Nations or to adhere to any convention concluded under the auspices of any such organisation.

(b) In the meantime, Italy to carry out such obligations in connection with any such organisation or convention as may at any time be specified by the Associated Powers members of the organisation or parties to the convention concerned.

part ii—political (europe)

Section I—General

4. Italy to recognise as null and void all territorial acquisitions made by Italy since the 9th June, 1940, and all titles, rights, properties and interests acquired in such territory since that date by the Italian State or Italian subjects.

Section II—Trieste and Venezia Giulia

5. Trieste to remain Italian with arrangements for port facilities and free communication with Central Europe.

6. The territory between the 1914 Austro-Italian frontier and the 1939 Italo-Yugoslav frontier to be divided between Italy and Yugoslavia.

Section III—Zara and the Dalmatian Islands

7. Italy to renounce in favour of Yugoslavia all rights and title in and over the enclave of Zara and the Dalmatian Islands.

8. The inhabitants to become Yugoslav with the right to opt for Italian nationality. Those so opting may be required to transfer their abode to Italy.

Sectidn IV—Albania

9. Italy to recognise Albania, as a free and independent State, and to relinquish all political rights and titles however and whenever acquired.

10. Italy to recognise the island of Saseno as belonging to Albania.

11. All treaties concluded between the Italian Government and the so-called Albanian Government since April, 1938 to be declared null and void.

Section V—Pantellaria and the Pelagian Islands

12. These islands to be permanently demilitarized.

Section VI—The Dodecanese

13. Italy to renounce in favour of Greece all rights and titles over these islands with the exception of Castelrosso.

14. The inhabitants to become Greek with the right to opt for Italian nationality. Those so opting may be required to leave the islands.

15. Italy to renounce in favour of Turkey the island of Castelrosso.

16. The arrangements under which the Allied Military authorities will have over these islands to the successor states to be determined between the Governments concerned.

part iii—political (africa, asia, etc.)

Section I—Ethiopia

17. Italy to recognise Ethiopia as a free and independent State and the Emperor Haile Selassie as its lawful ruler.

18. Italy to renounce all political rights and title in Ethiopia whenever acquired.

19. Italy to restore to the Emperor all Ethiopian works of art and religious objects removed from Ethiopia to Italy.

20. Italy to recognise the validity of all action taken in Ethiopia by the British military authorities and the Ethiopian Government since April, 1941 in respect of Italian persons, property and Italian-granted concessions.

Section II—Italian Colonies

21. Italy to renounce all her possessions in Africa.

22. Italy to accept the arrangements made for the disposal of these territories including questions of nationality.

23. Persons of Italian race resident in these territories may be required to return to Italy.

24. Italy to recognise the arrangements made by the Four Powers for the administration of these territories pending their final disposal.

25. The arrangements under which the Allied Military authorities will hand over these territories to the successor states or administration will be determined between the Governments concerned.

Section III—Tangier

26. Italy to recognise and accept such future arrangements as may be laid down in any revision of the Tangier Convention accepted by the other parties thereto.

Section TV—Former Turkish Territories and the Red Sea

27. Italy to renounce any rights and interests she may possess by virtue of Article 16 of the Treaty of Lausanne signed on the 24th July, 1923.⁷⁵

Section V—China

28. The Italian Government to renounce—

(a) all those provisions of treaties and agreements which authorise the King of Italy or his representative to exercise jurisdiction over Italian nationals or companies in China;

(b) all rights arising out of the Final Protocol of 1901⁷⁶ and agreements supplementary thereto;

(c) all rights in relation to the International Settlements and Shanghai and Amoy;

(d) all rights in relation to the Italian Concession at Tientsin.

The Italian Government to co-operate with the Chinese Government in reaching any necessary agreements with the other Governments concerned for the transfer to the Chinese Government of the administration and control of the Diplomatic Quarters at Peiking (Peiping) and the International Settlements at Shanghai and Amoy.

Section VI—Congo Basin Treaties

29. Italy to renounce all rights, titles and claims arising from these treaties.

Section VII—Mandates

30. Italy to renounce all rights, titles and claims deriving from the mandate system, including all undertakings given therewith, and all other rights, titles or claims in respect of any mandated territory or any properties therein.

part iv: naval, military and air clauses

Section I: Limitations to be imposed on the Italian Armed Forces

31. Prohibition on naval, military and air force installations in Sicily and Sardinia, except for such facilities as may be required by the World Organisation, or for internal security purposes.

32. No construction or experiments for long range weapons, guided missiles or similar installations, or for sea-mines, torpedoes, submarines or other submersible craft and specialised types of assault craft to be undertaken.

33. All equipment of German or Japanese origin or design to be prohibited.

34. The Italian Armed Forces will be subject to the short-term limitations set out in Section II to V below, until the Security Council has decided otherwise.

Section II: Limitations to be imposed on the Italian Navy

35. The Italian Navy to be limited to a fleet of:—

• 2— Old battleships
• 3— 6” cruisers
• 2—Fleet destroyers
• 20—Torpedo boats
• 20—Corvettes

Such number of small surface craft as can be manned and maintained in full commission within the limits of a manpower allocation of 3,000 officers and men.

36. Personnel to be limited to approximately 18,000 on voluntary long-term engagements. The Allied Inspectorate to be given discretion to vary this figure within small limits. Compulsory naval service to be forbidden.

37. The Italian Navy in excess of that permitted under paragraph 35 above, to be disposed of by the Principal Allied Powers. No aircraft carriers to be retained or constructed.

38. Replacements of the ships enumerated in paragraph 35 above to be limited as follows:—

(a) No replacement battleship to be laid down.

(b) No restriction on replacement of other types of ships, provided that any ship being replaced is always scrapped before its successor is launched.

39. Personnel other than those forming part of the Italian Navy, not to receive any form of naval training.

40. Such naval fortifications and installations as the Allied Inspectorate may direct, to be destroyed. No new naval fortifications or installations to be constructed, and no new armaments or other defences to be added to existing fortifications or installations without permission of the Allied Inspectorate.

Section III: Limitations to be imposed on the Italian Army

41. The Italian Army to be limited to a force of:—

• 200,000 Troops
• 65,000 Carabinieri

42. The Italian Army, in excess of that permitted under paragraph 41 above to be disbanded as the Allied Inspectorate shall direct.

43. Personnel other than those forming part of the Italian Army and Carabinieri not to receive any form of military training.

44. Such fortifications and military installations as the Allied Inspectorate may direct to be destroyed. No new fortifications or military installations to be constructed and no new armaments or other defences to be added to existing fortifications or military installations without permission of the Allied Inspectorate.

45. All long-range weapons of a range over 20 miles, and similar installations to be destroyed.

Section IV: Limitations to be imposed on the Italian Air Force

46. The Italian Air Force to be limited to:—

(a) 6 Squadrons of S.E. fighter aircraft. (96 aircraft)

(b) 2 Squadrons of transport aircraft for internal transport purposes. (40 aircraft)

(c) 1 Air-sea rescue squadron. (10 aircraft)

(d) A training school of such capacity as the Allied Inspectorate considers necessary, together with sufficient training aircraft to maintain the above squadrons.

Each squadron to be permitted a reserve of aircraft which will not exceed 20% of the types in the squadron.

47. Personnel to be limited to approximately 12,000 on voluntary long term engagements. The Allied Inspectorate to be given discretion to vary this figure within small limits. Compulsory air force service to be forbidden.

48. The Italian Air Force, in excess of that permitted under, paragraphs 46 and 47 above to be disbanded as the Allied Inspectorate shall direct.

49. Personnel other than those forming part of the Italian Air Force not to receive any form of military air training.

50. Specifications of military aircraft owned by or manufactured in Italy during this period to be submitted to the Allied Inspectorate for approval.

51. Such military airfields and air installations as the Allied Inspectorate may direct to be destroyed. No new military airfields or air installations to be constructed without the permission of the Allied Inspectorate.

Section V: Limitations on War Material

52. The following limitations to be imposed—

(a) Italy not to manufacture or own either publicly or privately any war material, including warships and military aircraft in excess of that required for the forces permitted under paragraphs 35, 41 and 46 above.

(b) The Allied Inspectorate to determine which industrial plant specifically designed for the manufacture of munitions and other capacity created for warlike purposes is in excess of that required for the production of war material permitted under sub-paragraph (a) above.

(c) The Allied Inspectorate to exercise control over the manufacture, import, export and transit of war material in Italy.

(d) Italy to co-operate fully with the Associated Powers with a view to ensuring that Germany is unable to take steps outside German territory towards rearmament.

Section VI: Disposal of War Material

53. All German or Japanese war material, including blue prints, prototypes, experimental models and plans, unless expressly excluded by the Allied Inspectorate, to be placed at the disposal of the Principal Allied Powers.

54. All Italian or Allied war material, including warships and aircraft, in use by the Italian armed forces, in excess of that permitted for the armed forces specified under paragraphs 36, 41 and 47 above, to be disposed of to the Principal Allied Powers, and Italy to renounce all rights to same.

Section VII: Prohibition on employment or training of technicians

55. Italy not to employ or train any technicians (including military or civil aviation personnel) who are or have been nationals of Germany or Japan, or any other personnel specified by the Allied Inspectorate.

Section VIII: Setting up of cm Allied Inspectorate in Italy

56. An Allied Inspectorate to be set up in Italy, and to remain in being for so long as the Principal Allied Powers shall decide.

57. The task of the Allied Inspectorate shall include the supervision of the carrying out of the naval, military, air and civil aviation clauses of the Peace Treaty.

58. The Allied Inspectorate to be afforded full freedom of movement and all necessary facilities including the granting of diplomatic immunity. The Italian Government to provide such Italian currency as is required by the Allied Inspectorate.

Section IX: Provision of forces or facilities required by World Organisation

59. After she has been admitted into the World Organisation, Italy to provide any forces required by the World Organisation, for the maintenance of international peace and security.

60. Italy to make available such bases or other, facilities in Italian territory as may be required by the World Organisation, whether Italy is admitted to membership of World Organisation or not.

part v: prisoners of war and war graves

Section I: Prisoners of War

61. Italian prisoners of war to be repatriated as soon as transport permits, subject to any arrangements which may be mutually agreed between the individual Associated Powers detaining them and the Italian Government.

62. Cost of repatriation to be borne by Italy.

63. Mutual waiver of claims in respect of prisoners of war.

Section II: War Graves

64. Reaffirmation of existing agreements with any desired additions to cover the present war.

part vi: war criminals

65. Italy to assist by all means in her power the apprehension and surrender of persons whose surrender is requested by the appropriate Allied authorities on a charge of being concerned in any war crime.

66. The same to apply in the case of any United Nations national alleged to have committed an offence against his national law by way of treason or collaborating with the enemy.

67. Italy to supply any information and documents and to secure the attendance of any witnesses required for the trial of such persons.

68. Italy to assist in giving effect to decisions reached by the appropriate Allied authorities in regard to the property of such persons.

part vii: claims arising out of the war

Section I: Reparation

69. Liability of Italy to pay reparation, but her inability to do so beyond a limited extent recognised.

70. Italy to deliver to the Associated Powers industrial plant specifically designed for the manufacture of munitions and other capacity created for warlike purposes which is in excess of Italy’s peacetime needs.

71. Italy to furnish free of charge such Italian supplies and services as the major powers during the military period, or U.N.R.R.A., thereafter have provided or may provide as relief to any of the Associated Powers.

72. Italy to furnish compensation to United Nations civilian nationals resident in Italy who have suffered personal injuries in Italy as war damage on a basis not less favourable than that accorded to Italian nationals.

Section II: Restitution of loot

73. Italy to restore identifiable looted property; conditions and definition to be as in the case of Germany.

74. Claims to be put forward by the Governments of the Associated Powers and established by a Mixed Tribunal, whose decisions Italy shall implement.

part viii: property and debts

Section I: United Nations property in Italy

75. Italy to restore property of the Governments and nationals of the United Nations in Italy to its owners, in its condition at the outbreak of war.

76. Where such restoration is impossible, compensation to be paid in lire.

77. Claims to be established by a Mixed Tribunal, whose decisions Italy shall implement.

Section II: Post-Armistice Transactions

78. Italy accepts as a debt payable by her the value of the supplies delivered for civilian consumption since September 1943 by any of the Associated Powers.

Section III: Italian property in the territory of the United Nations

79. Each of the Associated Powers to have the right, should they wish to do so, to retain and liquidate Italian property in their territory and debts due to Italy from residents in their territory and to use them to pay off pre-war Italian indebtedness to them.

80. After such set-off, any balance in Italy’s favour may be either returned or used to pay off other claims against Italy, as may be agreed between Italy and the Power concerned; any balance of indebtedness by Italy shall be kept alive.

81. Italy to compensate the owners of property so liquidated.

Section IV: Ceded and liberated territories

82. The successor Government should—

(a) receive without payment Italian state and para-statal property in the territory concerned;

(b) be responsible for the note issue in the territory;

(c) make no contribution towards the general service of the Italian public debt, but, except in the case of ceded colonies should take over responsibility for servicing holdings in the territory of the public debt.

83. Property rights of Italian nationals in the territories concerned should be respected, provided that they have been properly acquired. If the Italian nationals leave the territory, they should be allowed, on the same condition, to take movable property with them or transfer the proceeds of sale to the extent permitted by local exchange control.

84. Companies incorporated under Italian law (other than para-statal companies) should be allowed to remain Italian and transfer their seat of control to Italian territory; their property to be dealt with as under paragraph 83.

85. In the case of ships, beneficial ownership and not the port of registration shall be the governing factor in deciding their locus.

86. Arrangements to be made for the transfer of liabilities and corresponding reserves of social insurance schemes.

87. The successor Government to restore any United Nations property still under sequestration. When this is impossible, compensation to be paid by the Italian Government as under paragraph 76.

Section V: Claims by and on Germany

88. Italy to have the same treatment as United Nations as regards—

(a) restitution of identifiable property;

(b) restoration of property in Germany;

(c) retention of German assets which existed in her territory before the outbreak of war.

89. Any gold which may be restored to Italy under paragraph 88 (a) above to be used by her towards the payment of her debt to those of the Associated Powers which have furnished relief to her since the liberation.

90. Italy to renounce all claims against Germany arising during the war other than those mentioned in paragraph 88, including all debts from Germany incurred during the war.

part ix: economic clauses

Section I: Commercial relations

91. Italy to undertake unilaterally for five years—

(a) to grant to the United Nations national or m.f.n. treatment (whichever is normally stipulated in modern commercial treaties) in relation to commerce, industry, shipping (except that for coastal shipping there should be a basis of reciprocity), the rights of persons and companies, etc.;

(b) as regards the import and export of goods, to grant m.f.n. treatment in relation to duties only; in other respects to indulge in no arbitrary discrimination against products of the territories of the United Nations;

(c) to grant equitable treatment in cases of expropriation of United Nations property with compensation on a basis not less favourable than that accorded to Italian nationals.

Section II: Industrial property

92. Italy to undertake, as regards industrial property and unfair trade competition—

(a) to observe towards the United Nations such codes and standards of practice as are recognized to be proper in modern international treaties;

(b) to apply the international conventions on these subjects to which she was a party before the war (with a reciprocal obligation on the part of the other parties);

(c) to adhere to the most recent revisions of these instruments.

Section III: Contracts, prescriptions and judgments

93. Subject to exceptions in some cases, and to special treatment of contracts of insurance and reinsurance, contracts which required continuous intercourse with the enemy for their performance to be deemed to be dissolved, as from the outbreak of war.

94. Italy to suspend, as between residents in Italy and residents in the territories of the Associated Powers, all periods of prescription or limitation of right of action in Italy for the duration of the war and for a limited period thereafter.

95. Italy to make fair compensation for damage suffered by United Nations nationals as a result of improper judgments in Italian courts after the outbreak of war.

96. The Associated Powers to be entitled to examine all decisions of Italian prize courts; Italy to accept and give effect to their recommendations after such examination.

Section IV: Transport and shipping

97. Italy to observe the provisions of the various international conventions on rights of transit, etc., to which she was a party before the war.

98. Italy to provide for one year free of expense to the Associated Powers such ships as are needed for specific military purposes (e.g., troopships and hospital ships for bringing troops back from theatres of operations).

part x: mercantile marine and shipbuilding clauses

99. No restriction to be placed on the Italian Mercantile Marine or Shipbuilding, excepting that:—

(a) Italian shipbuilding and the operation of the Italian Mercantile Marine shall not [be] subsidized in any form.

(b) Such ships and material as are constructed shall not embody German or Japanese components.

(c) Until the short-term limitations have been lifted, all specifications for Italian merchant ships shall be subject to approval by the Allied Inspectorate.

part xi: civil aviation

100. No restriction to be placed on Italian civil aviation inside Italian territory. Italy not to participate in civil aviation outside Italian territory until she is admitted to membership of the Provisional International Civil Aviation Organisation.

101. No restriction to be placed on the use or manufacture of civil aircraft by Italy, except—

(a) Italy not to use or manufacture civil aircraft of German or Japanese design or embodying any German or Japanese components.

(b) Until Italy has been admitted into the World Organisation, all specifications for Italian civil aircraft to be subject to approval by the Allied Inspectorate.

part xii: renunciation of claims

102. (a) Italy to recognise the validity of all acts carried out by the Associated Powers on Italian metropolitan and colonial territories up to the date of the coming into force of the present Treaty and to renounce all claims in respect thereof;

(b) This provision applies to the issue in Italian territory of Allied Military currency, the responsibility for which will be assumed by Italy.

103. Italy to renounce all claims in respect of—

(a) all acts and omissions by the United Nations in regard to Italian property in preparation for or since the outbreak of war, or in accordance with their exceptional war measures;

(b) the decrees and orders of United Nations prize courts, whether or not the proceedings have been interrupted;

(c) the exercise or purported exercise of belligerent rights;

(d) compensation or restitution in respect of submarine cables diverted during, or in preparation for, the war;

(e) generally, Italy to renounce all pecuniary claims based on events which occurred before the coming into force of the Treaty.

part xiii: miscellaneous

Section I: Revival, Modification and Abrogation of Treaties, Conventions, etc.

104. Bilateral Treaties:

Each Associated Power to notify Italy of the bilateral treaties it desires to keep in force. Any note so notified to be deemed to have been abrogated.

105. Multilateral Treaties:

(a) List of treaties to be abrogated so far as Italy is concerned.

(b) List of treaties in regard to which Italy must accept any modifications or changes subsequently agreed between the Associated Powers.

Section II: General

106. Italy not to introduce laws which discriminate on grounds of race, colour, creed or political opinion.

107. Italy not to prosecute or molest any person on account of his feelings or sympathies with the United Nations, including the performance of any action calculated to facilitate the execution of the Armistice or present Treaty.

108. Italy to receive back any Italian nationals and to accept responsibility for their reception and maintenance. Italy to recognise as possessing Italian nationality any person who before the 9th June, 1940, possessed Italian nationality unless that person is recognised by some other state as having acquired its nationality.

72. Telegram 9392, Delsec 12, September 13, 1945, 8 p.m., from London, transmitted the text of Part IV (articles 31 through 64) of this draft treaty to the Department of State together with the following message: “For Matthews from Dunn. Following are the Naval, Military and Air clauses and Prisoner of War and War Graves clauses of a memorandum by the UK delegation entitled ‘Draft Heads of Treaty with Italy’, circulated yesterday. Please obtain for us the War and Navy Departments’ comments on these clauses with any of your own observations.” (740.00119 Council/9–1345) The comments were forthcoming in telegram 8478, Secdel 123, September 26, 1945, 3 p.m., to London, which concluded with the following general observation: “Insofar as we are concerned, it is considered that British draft clauses are unnecessarily harsh, both as to substance and form, and would result in Ital resentment which in turn could be used to alienate Ital opinion. Harshness of clauses would lead to continual agitation for relaxation and might well encourage resorts to subterfuge to build up armaments secretly. Also, Allied Inspectorate, which British apparently contemplate to be long-term supervisory body providing more rigid control than United Nations Organization, would give opportunity for constant interference and intervention in Ital internal affairs on part of certain powers whose interests might not favor efficient Ital armed forces for internal security or legitimate defense.” (740.00119 Council/9–2645)
73. Brackets appear in the original.
74. Permanent Court of International Justice.
75. For text of the treaty, see League of Nations Treaty Series, vol. xxviii, p. 11; or British Cmd. 1929, Treaty Series No. 16 (1923). For documentation regarding the American participation in the Lausanne Conference on Near Eastern Affairs, see Foreign Relations, 1923, vol. ii, pp. 879 ff.
76. For text of the “Boxer Protocol”, or final protocol, signed at Peking, September 7, 1901, see Foreign Relations, 1901, Appendix, Affairs in China, p. 312.