Foreign Relations of the United States, 1946, Council of Foreign Ministers, Volume II

C.F.M. Files: Lot M–88: Box 2065: Deputies Documents

Report by the Committee of Economic Experts on Italy⁴²

secret
C.F.M.(D) (46) 153 (revised)

Paris, 11 June, 1946.

Peace Treaty With Italy

Economic and Financial Provisions Relating to Ceded Territories

Part I.	Agreed provisions.
Part II.	Subjects for which the Committee agreed that provisions were necessary in the treaty, but on which agreement was not reached.43
Part III.	Proposed provisions on which the Committee did not reach agreement regarding the necessity of inclusion in the treaty.43

Note.—Although throughout this Report paragraphs are numbered consecutively in each Part, this is done for convenience of reference and in no way indicates the final order of articles in the Treaty.

Part I—Agreed Provisions

1. The Successor State shall receive, without payment, Italian State and para-statal property within territory ceded to it under this Treaty^*

The following are considered as State or para-statal property for the purposes of this article: movable and immovable property of the Italian State, of local authorities and of public institutions and publicly owned companies and associations, as well as movable and immovable property formerly belonging to the Fascist Party or its auxiliary organizations.

2. The Successor State shall make arrangements for the conversion into its own currency of Italian currency held within the Ceded Territory by persons continuing to reside on the said territory or juridical persons continuing to carry on business there. Full proof of the source of the funds to be converted may be required from their holders,^†

3. The property rights and interests of Italian nationals permanently resident in the Ceded Territories at the date of the coming into force of the Treaty shall, provided they have been lawfully acquired, be respected on a basis of equality with the rights of nationals of the Successor State.

The property rights and interests within the Ceded Territory of other Italian nationals and also of Italian juridical persons, provided they have been lawfully acquired, shall be subject only to such legislation as may be enforced from time to time regarding the property of foreign nationals and juridical persons generally.^‡

4. Persons who opt for Italian nationality and move to Italy shall be permitted, after the settlement of any debts or taxes due from them in Ceded Territory, to take with them their movable property and transfer their funds, provided such property and funds were lawfully acquired. No export or import duties will be imposed in connexion with the moving of such property. Further they shall be permitted to sell their movable and immovable property under the same conditions as nationals of the Successor State.

The removal of property to Italy will be effected under conditions and within the limits agreed upon between Italy and the Successor State.

The conditions and time-periods of the transfer of the funds, including the proceeds of sales, shall likewise be agreed.

5. The property in Ceded Territory of the United Nations and their nationals, if not already freed from Italian measures of sequestration or control, and returned to its owner, shall be returned in the condition in which it now exists.^§

6. Debts owned [owed?] by persons in Italy to persons in the Ceded Territory or by persons in the Ceded Territory to persons in Italy shall not be affected by the cession. Italy and the Successor State undertake to facilitate the settlement of such obligations. As used in this paragraph, the term “persons” includes juridical persons.

7. The provisions of this Article shall not apply to the former Italian colonies.^║

42. At their 72nd Meeting, June 13, 1946, the Deputies agreed to defer approval of this Report and decided to refer it to the Council of Foreign Ministers. This Report was subsequently included as Appendix VI to the Draft Peace Treaty with Italy, C.F.M.(D) (46) 177, June 13, 1946, not printed. At its 22nd Meeting, June 19, the Council of Foreign Ministers approved Part I of this Report, subject to the reservations specified therein. For the United States Delegation Record and the Record of Decisions of that meeting, see pp. 538 and 546.
43. Not considered by the Council of Foreign Ministers and not printed here.
43. Not considered by the Council of Foreign Ministers and not printed here.
44. The U.S. and U.K. representatives accepted this paragraph without prejudice to any question of reparation. [Footnote in the source text.]
45. The Soviet representative raised the question of Italy’s obligations as regard to lires converted in Ceded Territory. The Committee agreed to come back to this question at a later meeting. [Footnote in the source text.]
46. All four representatives accepted these two paragraphs without prejudice to any question of reparation. [Footnote in the source text.]

47. In case restoration of property is impossible, the U.S.S.R., U.K. and French representatives agreed that this question would be studied in relation with that of compensation for United Nations’ property in Italy, on which no agreement had been reached as yet.

    The U.S. representative agreed that this question should be dealt with in appropriate provisions of the Treaty, but reserved his position as to whether the article on compensation for United Nations’ property in Italy was the appropriate one. [Footnote in the source text.]

48. When a decision is reached on Italian colonies, the question has to be reconsidered. [Footnote in the source text.]