Doc. No. 7 (P).

Memorandum on the Clauses of the Draft Peace Treaty Concerning Albania (Art. 21–26)

Articles 21–26

The Italian Government recognizes and undertakes to respect without reservation the full sovereignty and independence of Albania.

New Italy condemns without exception all violations committed by the Fascist Government against those democratic principles on which her institutions are now based. Italy has the strongest desire that her relations with Albania may again become cordial and trustful.

It is in this spirit that the Italian Government approves the general lines of the Articles of the draft Treaty concerning Albania. The amendments which the Italian Government proposes in respect to certain clauses of these Articles are based, in the first place, on the consideration that, thanks to Italian labour and capital, numerous public works of considerable import have enriched the Albanian territory. It would therefore be fair and equitable that due account should be taken of them. In the second place the Italian Government feels that the rights of Italian subjects in Albania should not be deprived of the protection that international rules have always recognized in similar cases.

Upon detailed examination of the Articles, the following remarks can be made:

Art. 21.—Accepted.

Art. 22.—Accepted.

Art. 23.—By this Article Italy is asked formally to renounce in favour of Albania all property, rights, interests and advantages of all kinds acquired by the Italian State whether before or after 1939. In this connection the following considerations are submitted:

1.
The draft of the Treaty in the case of this Article, as in the case of others, places on the same footing the rights acquired by Italy in Albania before and after 1939. The Italian Government wishes to make the preliminary remark that such an approach appears inspired by the principle that all activity by Italy in Albania from 1925 onward was directed against the interests of that country. This principle does not tally with the truth either from an historical point of view or in relation to actual facts. It may be recalled in this connection, that Italian activity in Albania, in the economic and banking field, after 1925, followed closely the recommendations made by the League of Nations (as shown in the book “Italy and Albania”).
2.
On the other hand, the Draft omits to take into consideration the value of the imposing public works carried out by Italy and the equipment [Page 150] she has installed in Albania at the cost of heavy economic sacrifice, all of which would automatically become the property of Albania under the title of State-owned property. Italy’s contribution to the development of Albania far exceeds any figure that Albania can reasonably claim as reparation. The Italian Government has already submitted complete documentary evidence on this contribution.

In the present form, Article 23 might be construed to mean that the renunciation Italy is now called to make would not even be set against eventual Albanian claims toward Italy. In fact, in that section of the Draft which envisages the possibility of granting reparations to Albania (Art. 64–Note) no reference is made to Article 23. It follows that, should reparations be granted, they might be considered as due over and above the renunciation just mentioned.

The Italian Government is of the opinion that these provisions, in their present form, are inconsistent with the general principles of international law and with the practice followed in previous Peace Treaties. The Italian Government therefore suggests that Art. 23 should be amended so that the value of property, rights, interests, etc., which Albania is to receive, is credited to Italy and that this credit is balanced against Albania’s claims for reparation when that question comes up for settlement.

With regard to the controversies which might possibly arise, see considerations made below in connection with Article 24.

Art. 24.—The first part of Article 24 provides that Italian nationals in Albania will enjoy the same juridical status as other foreign nationals. This part can give rise to no objections.

The second part, instead, implies Italy’s acceptance of all measures cancelling or modifying concessions or special rights granted to Italian nationals which Albania may take within a year from the coming into force of the Treaty.

These provisions are contrary to the principles which should regulate relations among Nations. Indeed, it appears hardly in keeping with the principles of law and equity to oblige one of the contracting parties to accept in advance the interpretation and the application given to a treaty by the other party.

The Italian Government considers therefore that the second part of Article 24 relating to these provisions should be suppressed. With regard to the right accorded to Albania to annul or modify the concessions or rights granted to Italian nationals, it would appear necessary that:

a.
The right to revise or cancel concession or special rights should be limited to those granted to Italian nationals after April 8, 1939; and that;
b.
The benefit of an equitable compensation should be recognised in favour of those persons whose interests are affected; and that likewise the Treaty should establish guarantees to be accorded to the above persons, such as recourse to the Four Ambassadors as envisaged in Article 75.

Art. 25.—The provisions of this Article can entail extremely serious consequences. The agreements made between the Italian and Albanian Authorities after 1939 have given birth to numerous transactions and to manifold rights. Should the above-mentioned agreements be considered null and void, the corresponding rights and transactions would also lose all juridical foundation. The result would be a series of controversies between private individuals. Since, for the purpose of the Treaty, it is sufficient that the above-mentioned agreements should cease to have effect in the future, and since, moreover, the Treaty already establishes the renunciations to all rights which might derive from these agreements, the Italian Government believes that the words “are null and void” could be substituted with the words “have ceased to have effect”.

Art. 26.—In the view of the Italian Government, the provision of Article 26 (as already remarked with regard to similar clauses contained in Art. 24) is contrary to the principles which should inspire relations between countries. The obligation imposed upon one party to accept in advance the interpretation and the application given to a treaty by the other party, does not correspond to the principles of justice. This is all the more serious because, according to Article 26, Albania is under no obligation to answer to the other contracting parties for the execution and interpretation of the treaty. The Italian Government believes that Article 26 should be suppressed.