CFM Files

Proposal by the United States Delegation to the Political and Territorial Commission for Italy on Article 16

C.P.(IT/P)Doc.16

When the Council of Foreign Ministers concluded its session in July it had agreed upon the text of a decision in respect of the Free Territory of Trieste. It is obvious that this decision, which has been included in the draft Peace Treaty with Italy, was not prepared in a form suitable for insertion in the final treaty and requires implementation in the form of specific treaty Articles.

The U.S. delegation therefore submits a draft of four Articles to be inserted as Articles 16(a), 16(b), 16(c), and 16(d) as well as the draft of an Annex giving special provisions in respect of property in the Free Territory. These are not to be considered as amendments or new proposals but merely as the instrument to give effect to the decision of the Council.

In addition to creating the new territory, establishing its frontier and providing for the guarantee of the Security Council, the U.S. proposal contains suggested clauses relating to special nationality and property clauses which must of necessity differ from the general nationality and property clauses relating to ceded territories.

It will also be noted that the present draft reproduces the text of the U.S. proposal for the frontier between the Free Territory of Trieste and Yugoslavia now contained in the draft treaty.

Draft of Article 16 for Insertion in Peace Treaty With Italy

Article 16 (a)

1. There is hereby constituted the Free Territory of Trieste which is recognized by the Allied and Associated Powers and by Italy. They agree that the integrity and independence of this Free Territory should be guaranteed by the Security Council of the United Nations and that they will undertake the necessary measures to support this guarantee.

2. (a) The boundary between the Free Territory of Trieste and Italy is that defined in Article 4.

(b) The boundary between the Free Territory of Trieste and Yugoslavia shall follow a line that extends from a point on the boundary between the Italian provinces of Gorizia and Trieste, approximately 2 kilometers Northeast of the village of San Giovanni, southeastward along this boundary to Monte Lanaro (546) and thence in a southeasterly direction to Monte Coousso (667), crossing Highway No. 58 from the city of Trieste to Sesana approximately 3.3. kilometers West [Page 781]of the town of Sesana and leaving the villages of Vegliano and Orle within Yugoslavia.

Crossing the railroad from Trieste to Cosina, the line extends to Monte Carso (456), and continues in a southerly direction following the boundary between the Italian provinces of Trieste and Istria to a point approximately 0.7 kilometer southwest of the town of San Servola;

Following the crests of westward facing escarpments southeastward to a point approximately 0.5 kilometer East of Besovizza, the line then bears westward to a point 0.5 kilometer North of Monte San Antonio (355) leaving the village of Santa Maria del Risano about 0.5 kilometer to the North of the line within Italy and the town of Covedo about 0.5 kilometer to the South of the line within Yugoslavia;

The line then continues southwestward to a point approximately 0.6 kilometer Northwest of the village of Chermi, roughly paralleling and lying about 0.6 kilometer Northwest of the road from Maresego through Duori and thence extends Southeast to a point 0.5 kilometer East of the town of Cernova, leaving the town of Boste within Italy and the town of Truscolo within Yugoslavia;

Thence the line continues in a southwesterly direction Southeast of the road between the villages of Cernova and Chervoi leaving this road approximately 0.8 kilometer East of the village of Cucciani and thence in a South-Southwesterly direction passing about 0.5 kilometer East of Monte Braico and about 0.4 kilometer west of the village of Sterna Filaria, reaching the Quieto River at a point approximately 1.6 kilometer South of the town of Castagna, passing about 0.4 kilometer West of the town of Piedmonte and about 0.5 kilometer East of the town of Castagna;

Thence the line follows the principal and improved channel of the Quieto to its mouth and extends through the Porto del Quieto to the high seas by following a line placed equidistant from the coastlines of the Free Territory of Trieste and Yugoslavia.

3. Italian sovereignty over the territory lying between the Adriatic Sea and the boundaries defined in Article 4 of the Treaty and paragraph 2 of the present Article shall be terminated upon the coming into force of the Treaty.

4. Upon the renunciation of Italian sovereignty the Free Territory of Trieste shall be governed by the provisions of Annex . . . . . (Provisional Government of the Free Territory of Trieste) which shall remain in effect until such a time as the Security Council shall, upon recommendation of the Provisional Governor, direct the coming into force of the permanent statute, approved by it (recommendations for which are contained in Annex . . . . .). Such permanent statute shall [Page 782]be considered as an integral part of the present treaty and the Free Territory shall thenceforth be governed by its provisions.

5. The Free Territory of Trieste shall not be considered as ceded territory within the meaning of Article 13 and Annex 3 of the present treaty.

Article 16 (b)

Italy and Yugoslavia undertake to give to the Free Territory the guarantees set out in Annex 9. Italy, Yugoslavia and the Free Territory will carry out and give effect to the provisions of Annex . . . . . (property and debt provisions relating to the Free Territory of Trieste).

Article 16 (c)

In the Free Territory there shall be established and maintained a Free Port in accordance with the provisions of Annex . . . . .

Article 16 (d)

1.
Any Italian citizen, who was domiciled on June 10, 1940 in the area comprised within the Free Territory or who is a child born after June 10, 1940 to any such person, shall become an original citizen of the Free Territory, with full civil and political rights, upon the termination of one year after the coming into force of this treaty, unless such person shall within such year opt, either himself or through his parents, to retain his Italian citizenship or to acquire Yugoslav citizenship under paragraph 2 of the present Article.
2.
Any Italian citizen who is eligible to become an original citizen of the Free Territory may, in lieu of opting to retain his Italian citizenship, opt, either himself or through his parents, to acquire Yugoslav citizenship provided the acquisition of that citizenship by such person shall be acceptable to the Yugoslav Government.
3.
Any person over 18 years of age or, if married, of any age, eligible to become an original citizen of the Free Territory under paragraph 1 of this Article may become an original citizen of the Free Territory, without awaiting termination of the one-year period referred to in that paragraph, by filing a declaration of his intent to become such citizen.
4.
Persons who become citizens of the Free Territory under this Article shall thereupon cease to have Italian citizenship.
5.
The options referred to in paragraphs 1 and 2 of this Article may be exercised by any person eligible to exercise such option who is over 18 years of age or is married. An option on the part of the husband shall not constitute an option on the part of the wife. An option on the part of the father, or if the father is not alive, on the part of the mother, shall however automatically include all unmarried children under the age of 18 years.
6.
A person who has exercised an option to retain his Italian citizenship, or to acquire Yugoslav citizenship may be required by the Free Territory to move to the state whose citizenship he possesses or acquires, or to such other state as may be willing to accept him.

Annex 13

Property and Debt Provisions Relating to the Free Territory of Trieste

1.
The Free Territory of Trieste shall receive, without payment to Italy, all property within the Free Territory owned by the Italian State or by Italian para-statal organizations and all rights and interests of the Italian State or of Italian para-statal organizations relating to property within the Free Territory. The Free Territory of Trieste shall also receive all relevant archives concerning the Free Territory and the Free Port.
The following are considered as State or para-statal property for the purposes of this Annex: 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 Free Territory of Trieste shall not be required to assume pecuniary obligations of the Italian State or its agencies, except to the extent that specific Italian State or para-statal properties transferred to the Free Territory, or the revenues therefrom, have been hypothecated as security for such obligations. Any such hypothecated properties or revenues shall continue to be security for the obligations assumed by the Free Territory of Trieste.
3.
Special arrangements shall be concluded between Italy and the Free Territory of Trieste to govern the conditions under which the obligations of Italian public or private social insurance organizations towards the inhabitants of the Free Territory of Trieste and a proportionate part of the reserves accumulated by the said organizations shall be transferred to similar organizations of the Free Territory.
4.
Natural persons who opt for Italian or Yugoslav nationality and move to Italy or Yugoslavia shall be permitted, after the settlement of any debts or taxes due from them in the Free Territory of Trieste, to take with them their movable property and, where necessary, to transfer their funds, provided such property and funds were lawfully acquired. No export or import duties will be imposed in connection 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 Free Territory of Trieste.
The removal of property to Italy or Yugoslavia will be effected under conditions and within the limits agreed upon between Italy or Yugoslavia and the Free Territory of Trieste.
The conditions and time periods of the transfer of funds, including the proceeds of sales, shall likewise be agreed.
5.
Debts owed by persons in Italy or in territory ceded to Yugoslavia to persons in the Free Territory of Trieste or by persons in the Free Territory of Trieste to persons in Italy or in territory ceded to Yugoslavia shall not be affected by the establishment of the Free Territory. Italy, Yugoslavia and the Free Territory of Trieste undertake to facilitate the settlement of such obligations. As used in this paragraph, the term “persons” includes juridical persons.
6.
The properties in the Free Territory of Trieste of United Nations and their nationals, if not already freed from Italian measures of sequestration or control and returned to their owners, shall be returned in the condition in which they now exist.*
7.
The provisions of paragraphs 1, 2, 5 and 6 of Article 65; Article 66; Article 67; paragraph 3 of Article 68 and Article 70 shall be deemed to be parts of this Annex for the purpose of their application to the Free Territory of Trieste in like manner as to Italy.
  1. The question of compensation by Italy in case restoration of property is impossible should be studied in relation to the appropriate provisions of the treaty. [Footnote in the source text.]