740.00119 E.W./12–1945

The Ambassador in Italy (Kirk) to the Secretary of State

No. 2813

Sir: With reference to my telegram No. 4104 of December 18,31 reporting that the Ministry of Foreign Affairs had furnished me with a copy of a series of memoranda which it had sent to the Italian Ambassador in Washington giving the Italian Government’s point of view concerning the revision of Armistice terms, I have the honor to transmit herewith a translation of this series of memoranda which was furnished by the Ministry of Foreign Affairs.

Respectfully yours,

Alexander Kirk
[Enclosure—Translation]

Memorandum by the Italian Ministry for Foreign Affairs

Commercial and Financial Relations With Foreign Countries

1. The Italian Government will have full freedom to start negotiations and to conclude commercial and financial agreements with all foreign countries.

[Page 1097]

Possible negotiations with Germany and with Japan will however be entered into only after having submitted their proposed draft to the United Nations: the conclusion of such negotiations will be subject to the United Nations’ consent to be obtained in advance.

The settlement of debts contracted prior to September 8th, 1943, will also be subjected to the previous consent of the United Nations.

The Italian Government will freely dispose for export of all those products, agricultural or industrial, which they deem to be in excess of the needs of the home market. To this purpose the United Nations will determine, at time intervals to be fixed, the quantities of products included in the “Reserved Commodities Lists”, which must be kept at their disposal, and the Italian Government will not be allowed to dispose of said quantities unless by previous agreement with the United Nations.

Performance of Industrial and Commercial Activity and Protection of Other Economic Interests

The industrial plants, which are not actually carrying on industrial activity on behalf of the United Nations, will be immediately returned to their legitimate owners and the machinery and implements which may temporarily have been otherwise diverted, will be reinstated.

Any provision by the Allied Authorities which may interfere with the industrial or commercial activity, or with other economic interests, will be previously agreed upon with the Italian Government and dealt with on a contractual basis.

Mercantile Marine

Until such time as the present international regulation governing maritime traffic and the shipping of the United Nations, will continue to be in force, the Italian merchant-men will continue to be comprised in the “pool” under the control of the United Maritime Association (U.M.A.), at the same conditions as those applying to merchant-men of the United Nations.

The Italian Government and the Italian ship owners will have to free full freedom—on the international market—to purchase, sell, charter merchant-men, and they will be allowed to build—in their ship-yards—merchant-men who are indispensable for the requirements of the national maritime traffic, as well as those on order by foreign countries.

Financial Matters

Beginning . . . . . the lire needed for the expenditures by the Allied Authorities in Italy will be requested to the Italian Government, who will place them at their disposal against an equivalent credit in United Nations currencies.

[Page 1098]

Services and performances of any kind and requisitions paid for by the Italian Government on behalf of the United Nations, as well as the Am-lire issued up to the date when the present Convention will enter into effect, will give origin to a credit in favour of the Italian Government in United Nations currencies. The determination of amounts paid out by the Italian Government and of the Am-lire issued, and also formalities concerning the counter credit, will be the subject of further negotiations.

The properties, goods, assets of any nature whatsoever, the right to which has arisen in foreign countries, subsequently to September 8th, 1943, and belonging to the State, or to public and private bodies, or to Italian citizens, are at the free disposal of those entitled thereto, subject to the compliance with the laws and regulations of the countries where same are located, and which are applicable to citizens of the United Nations.

An equal treatment will be made to the increments and to income accrued after September 8th, 1943 on Italian assets existing in the United Nations prior to that date.

The utilization of these assets will take place according to Italian legislation and the Allied Commission will be informed thereof.

Customs

The Italian Government is fully at liberty to reestablish their Customs and vigilance services along the whole of the frontier line, both maritime and inland. The re-establishment of said services on the eastern frontier will be provisionally carried out by the Allied Authorities after consultation with the technical organs of the Italian Customs Administration. In the harbours still under Allied Control, and until such time as said control will continue, the Customs and vigilance services will be carried out by the Italian Customs Authorities and by the “R. Guardia di Finanza”, in agreement with the Allied authorities.

Railways

The Administration of the State Railways is entitled to run all passengers and freight services for civilian use commensurate to the Nation’s requirements and to the purpose it will be allowed to make use of the whole of its rolling stock, of its telephone and telegraph installations, both local and inter-compartmental, of all the stocks in its warehouses and depots and of anything else which may be needed for a better functioning of the railway service. The aforesaid Administration shall however preordain its plans in such a manner as to ensure priority to military transports of the United Nations.

[Page 1099]

The office premises and the installations needed for the functioning of the services for the running of the lines will be returned to the railway Administration.

The workshops (both those of the State Railways and those privately owned) for the repair and the construction of rolling stock and for the supplies needed in connection with the running of the lines will also be derequisitioned.

The Administration of the Italian State Railways will finally be entitled to enter into agreements with the Administrations of the European railways networks for a resumption of international traffic, for the inter-change of rolling stock and for the regulation of technical and financial questions concerning the international railway stations at the frontiers.

Civil Aviation

The Italian Government is entitled to re-establish the Civil Aviation services needed to connect the main Italian demographic and economic centers with one another. They will also be entitled to reestablish connecting air-services between the internal lines and the main European and Outer-European centers, provided that the program for a gradual resumption of the international air services, worked out by the Italian Government, be previously submitted to the approval of the United Nations.

The movements of air-lines and their utilization on the part of Italian and foreign passengers will be carried out in accordance with the regulations which are in force in Italy.

The use of the air-ports and of the ground “aid-to-navigation” installations will be returned to the Italian Government subject to the necessary agreement that their use be assured to international traffic.

  1. Not printed.