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

C.F.M. Files: Lot M–88: Box 2079: CFM Documents

Report to the Deputies by the Committee of Economic Experts⁴⁵

secret
CFM(46) (NY)17

New York, November 18, 1946.

1. Treaty with Italy: Reparation for [Albania,]⁴⁶ Ethiopia, Greece and Yugoslavia (Article 64, Part B)⁴⁷

The Committee recommends the following text to be inserted as an additional paragraph at the end of Part B of Article 64:

“7(a) The Ambassadors in Rome of the United States of America, the Union of Soviet Socialist Republics, France, and the United Kingdom of Great Britain and Northern Ireland will coordinate and supervise the execution of the provisions of Part B of this Article. They will consult with and advise the heads of the diplomatic missions in Rome of the countries named in paragraph 1 of Part B and, as circumstances may require, with the Italian Government. For the purpose of this Article, the Four Ambassadors will continue to act until the expiration of the period for reparation deliveries provided in paragraph 1 of Part B.

“(b) With a view to avoiding conflict or overlapping in the allocation of Italian production and resources among the several countries entitled to reparation under Part B, the Four Ambassadors shall be informed by the Italian Government and any of the Governments entitled to reparation under paragraph 1 of Part B of this Article of the opening of negotiations for an agreement under paragraph 3 and of the progress of such negotiations. In the event of any differences arising in the course of the negotiations the Four Ambassadors shall be competent to decide any point submitted to them by either Government or by any other Government entitled to reparation under Part B of this Article.

“(c) Agreements when concluded shall be communicated to the Four Ambassadors. The Four Ambassadors may recommend that an Agreement which is not, or has ceased to be, in consonance with the Objectives set out in paragraph 3 or sub-paragraph (b) above be appropriately modified.”

The Committee recommends that paragraph 6 of Part B be omitted. Specific provision is already made for the valuation of the vessels Saturnia and Vulcania. In the case of factory and tool equipment referred to in paragraph 2(a) of Part B, the Committee notes that under Article 58, this equipment will be transferred by Italy to the Four Powers, who will determine its disposition. The Committee assumes that the Four Ambassadors, who will be responsible for supervising the execution of Article 58, will make the allocation of the equipment among the powers entitled to share therein and that the equipment will be valued in connection with this process. It would therefore be unnecessary to provide specifically for the valuation of such equipment.

The omission of paragraph 6 will call for a slight drafting change in paragraph 2(c) of Part B, where the words:

“by the method indicated in paragraph 6 below”

should be replaced by the words:

“by the Four Ambassadors”.

2. Treaty with Italy: Compensation to Italian Nationals Whose Property is Taken for Reparation Purposes

The Committee felt it would be desirable to include a provision for compensating Italian nationals whose property is taken for reparation purposes. It accordingly recommends the following text as an additional Part E of Article 64:

“The Italian Government undertakes to compensate all natural or juridical persons whose property is taken for reparation purposes under this Article.”

3. Treaties with Italy and Roumania: Definition of Ships

The Committee recommends the adoption of the text recommended by the Paris Conference for inclusion in Article 24, paragraph 8 of the Roumanian Treaty,⁴⁸ with the following change proposed by the Soviet Delegation. Insert after the words:

“while in Roumanian waters”

the following words:

“or after they had been forcibly brought into Roumanian waters”.

The text of the definition as amended is set forth in Annex A of this Report.

The Committee also recommends that this definition be included mutatis mutandis (See Annex B) in the Italian Treaty, in Article 68, paragraph 8.⁴⁹

Annex A

Article 24—Treaty With Roumania

Additional sub-paragraph to paragraph 8 (c)

Without prejudice to the generality of the foregoing provisions, the property of the United Nations and their nationals includes all seagoing and river vessels, together with their gear and equipment, which were either owned by United Nations or their nationals, or registered in the territory of one of the United Nations, or sailed under the flag of one of the United Nations and which, after September 1, 1939, while in Roumanian waters, or after they had been forcibly brought into Roumanian waters, either were placed under the control of the Roumanian authorities as enemy property or ceased to be at the free disposal of the United Nations or their nationals, in Roumania, as a result of measures of control taken by the Roumanian authorities in relation to the existence of a state of war between Germany and members of the United Nations.

Annex B

Article 68—Treaty With Italy

Additional sub-paragraph to paragraph 8 (c)

Without prejudice to the generality of the foregoing provisions, the property of the United Nations and their nationals includes all seagoing and river vessels, together with their gear and equipment, which were either owned by United Nations or their nationals, or registered in the territory of one of the United Nations, or sailed under the flag of one of the United Nations and which, after June 10, 1940, while in Italian waters, or after they had been forcibly brought into Italian waters, either were placed under the control of the Italian authorities as enemy property or ceased to be at the free disposal of the United Nations or their nationals, in Italy, as a result of measures of control taken by the Italian authorities in relation to the existence of a state of war between Germany and members of the United Nations.

45. This Report was prepared in pursuance of instructions agreed upon by the Deputies at their 117th Meeting, November 11; see the Report of the Deputies, Annex (p. 1128) to the Record of Decisions of the 7th Meeting of the Council of Foreign Ministers, November 12, 4:30 p.m. This Report was approved and the language therein included was adopted by the Council at its 10th Meeting, November 28, 4 p.m.; see the United States Delegation Minutes and the Record of Decisions of that meeting, pp. 1324 and 1337.
46. Brackets appear in the source text.
47. For text of article 64, Part B, as recommended to the Council of Foreign Ministers by the Paris Peace Conference, see vol. iv, p. 902.
48. See article 24, paragraph 8c, sub-paragraph 2, vol. iv, p. 920.
49. For text of article 68, paragraph 8, of the Draft Peace Treaty with Italy as submitted to and approved by the Paris Peace Conference, see vol. iv, p. 30.