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

C.F.M. Files: Lot M–88: Box 2061: CFM Documents

Proposal by the United States Delegation to the Council of Foreign Ministers⁴⁷

secret
C.F.M. (46) 188

Paris, 4 July, 1946.

Peace Treaty With Italy

Reparations for the U.S.S.R.

1. The U.S.S.R. shall receive from Italy as reparations goods to a value of $100,000,000 from the following sources:

(a) A share of the Italian factory and tool equipment designed for the manufacture of war implements which is not required by the permitted military establishments and is not readily susceptible of conversion to civilian purposes and which is removed from Italy pursuant to Article … of this Treaty.

(b) Any Italian assets in the U.S.S.R., which shall be dealt with in accordance with Article 71 (Italian external assets).

(c) Property, rights and interests of the Italian Government and of Italian nationals in Roumania, Bulgaria, Hungary, and the Soviet Zone of Occupation of Germany, subject to the exceptions specified in paragraph 5 of Article 71 (Italian external assets).

(d) The Italian vessels Saturnia and Vulcania, which shall be reconditioned and refitted in Italy at the expense of the Italian Government.

(e) Deliveries of goods produced in Italy to a value to be determined by the four Ambassadors acting as provided in Article 76 which shall be the difference between the sum of $100.000.000 and the value of the assets transferred to the U.S.S.R. pursuant to subparagraphs (a), (b), (c), and (d) above as determined by the four Ambassadors acting as provided in Article 76. The Italian Government shall be entitled to lay before the four Ambassadors evidence regarding the value of the assets referred to in these subparagraphs.

Deliveries made under this paragraph shall commence three years after the coming into force of this Treaty and shall be completed within a period of six years thereafter.

The quantities and types of goods to be delivered shall be the subject of agreement between the Italian Government and the Government of the U.S.S.R. and shall be selected and deliveries scheduled in such a way to avoid interference with the economic reconstruction of Italy.

The U.S.S.R. shall furnish to Italy free of cost the materials needed for the production of these goods which are normally imported into Italy, the value of which shall be deducted from the value of the goods delivered to the U.S.S.R.

The Italian government may at its option make payments in convertible currency in lieu of the deliveries provided for in this subparagraph.

2. The sums in dollars set forth in this Article shall be understood to refer to United States dollars at a gold parity of 35 dollars per ounce of gold.

47. This paper was read by the Secretary of State to the Council of Foreign Ministers at its 34th Meeting, July 4, 1946, and it was subsequently discussed at the same meeting; see the United States Delegation Record of that meeting, p. 771.