Council of Foreign Ministers Files: Lot M–88: CFM London Documents

Memorandum by the French Delegation to the Council of Foreign Ministers

C.F.M.(45) 20

Amendments Proposed by the French Delegation to the Economic and Financial Provisions of the Draft Directive Submitted by the United States Delegation on the Preparation of a Treaty of Peace With Italy56

vi. reparations

The Italian Government will authorise each of the United Nations to take over and apply to their respective reparation claims such of [Page 218] the assets of the Italian Government (excluding diplomatic and consular premises) and of Italian nationals as are within the jurisdiction of the respective United Nations; the latter will exercise their rights to the extent justifiable by the circumstances and according to their free decision. The Italian Government will undertake to indemnify, in accordance with Italian law, the Italian nationals whose property will thus have been requisitioned.

Subject to the provision above with respect to war-making machinery and subject to the provisions connected with other elements which may be established for the settlement of reparation without burdening the Italian economics substantially, each of the United Nations will limit its reparation claim against Italy to the amount which will thus be made available to it and each of the United Nations will be free to allocate that amount to the indemnification of the state or its nationals as it may determine as a matter of domestic policy.

Property which was taken from the nationals of the United Nations and which will be identified on the Italian territory will be restored to them. On demand of the United Nation concerned such actual property will be reconditioned by the Italian Government at its expense.

A commission composed of representatives of the Four Powers will be entrusted with the securing of the application of these provisions.

Italy will restore to the Governments and the nationals of the United Nations all property, rights and interests which they had on her territory in the state in which this property and these rights and interests were at the moment of the declaration of the war. She will take all measures to return to the interested parties the property and the rights of which they were deprived as a result of fascist discriminating measures. Should such restitution or reconditioning of the actual property and rights be materially impossible Italy must pay compensations in lire.

vii. financial, economic and establishment provisions

There are a number of matters affecting future economic and financial relations which might be dealt with in the treaty of peace, but in view of the complexities raised by the large number of states involved some of the financial, economic and establishment matters must be dealt with by separate treaties.

Provisions of a general character, however, will have to be introduced into the treaty. In that respect the British draft can be taken by the Deputies as a basis for their discussions.

In addition to that, provisions referring to one State in particular, but being either of a special importance or of a great urgency to it can be included in the general treaty.

  1. C.F.M.(45) 16, September 14, “Suggested Directive to Deputies …”, p. 179.