In Section B—Reparation for other Powers—the following text should be inserted:
- Italy shall pay, over a period of seven years from the coming into force of this treaty reparation to France to the amount of . . . . . [Page 744] United States dollars, reparation to the Federative People’s Republic of Yugoslavia to the amount of 1,300,000,000 United States dollars, reparation to Greece to the amount of . . . . . reparation to Albania to the amount of . . . . . and reparation to Ethiopia to the amount of . . . . .
- Reparation shall be made from the following sources.
- 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 58 of the present treaty.
- The Italian merchant fleet, with a total registered tonnage of . . . . . based on the average composition of the said fleet;
- Italian current industrial production, to be delivered in seven equal annual instalments;
- The surplus gold coin of the Bank of Italy, remaining after the execution of the obligations under Article 65 of the present treaty;
- The execution by Italy of works in countries entitled to Italian reparations.
- The quantities and types of goods to be delivered by Italy and the works to be executed shall be the subject of agreements between the Italian Government and the Governments entitled to Italian reparations. Italy undertakes to conclude these agreements within six months from the coming into force of the present treaty. The agreements shall be based on the drafts to be presented, in agreement with the Italian Reparation Commission, by the Governments entitled to such reparations. Until these agreements come into force, Italy shall, in the same way as for reparation and in respect of reparation make deliveries from industrial production to France up to the amount of . . . . . dollars, to the Federative People’s Republic of Yugoslavia up to 300 million dollars, to Greece up to . . . . . dollars, to Albania up to . . . . . dollars and to Ethiopia up to . . . . . dollars.
- The States entitled to reparations shall furnish to Italy, on commercial terms, raw materials or products which are normally imported into Italy up to the value of the raw materials imported by Italy for the production of the goods delivered on account of reparations. Payment for rich raw materials or products shall be made by deducting the value of the materials thus furnished from that of the goods delivered on reparations account.
Following Section B of Article 64, insert Section C, reading as follows:
- The unit of calculation for the reparation settlement proposed shall be the United States dollar at a gold parity of 35 dollars per [Page 745] ounce, the price of deliveries and services being calculated according to the average world market prices of 1938.
- The costs of delivery shall be borne by Italy up to the Italian frontier or the port of the State to which the goods are consigned; for delay in delivery Italy shall be liable to a fine amounting to 5% per month of the value of the delivery in question. The total of such fines shall be affected to further deliveries in the year following.
- For reparation questions the States entitled to reparations will be represented in Italy by their Reparation Delegations. The staff of such Delegations shall enjoy diplomatic privileges, and the cost of their maintenance shall be borne by the Italian Government.
- The Heads of these Delegations or their deputies will
constitute an Italian Reparation Commission with the following
- Distribution of factory and tool equipment, of the merchant fleet and gold coin indicated as the sources from which Italian reparations can be drawn.
- Co-ordination of reparation deliveries.
- In event of the non-fulfilment of her obligations by Italy, proposal of measures to ensure such fulfilment.
The members of the Italian Reparation Commission will adopt, by a majority vote, their own Rules of Procedure and constitute a secretariat with the necessary staff. The cost of the secretariat will be borne by the Italian Government.