CFM Files

Four-Power Proposal to the Economic Commission for Italy

C.P.(IT/EC) R.34

Italian Reparations for Countries Other Than the USSR

Proposal for Article 64–B, C, and D, by France, UK, USA and USSR

B. Reparations for Albania, Ethiopia, Greece and Yugoslavia

[1.] Italy shall pay reparation to the following countries:

Albania in the amount of $

Ethiopia in the amount of $

Greece in the amount of $

Yugoslavia in the amount of $

These payments shall be made during a period of 7 years from the date of the coming into force of this Treaty. Deliveries from current industrial production shall not be made during the first two years.

2. Reparation shall be made from the following sources:

A share of the Italian factory and tol 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 this Treaty.
Italian current industrial production;
All other categories of capital goods or services, including either or both the passenger vessels Saturnia and Vulcania if, after their value has been determined by the method indicated in paragraph 6 below, they are claimed within 90 days by one of the countries indicated in paragraph 1, part B of this Article.
U.K.–U.S. proposal—opposed by France and U.S.S.R.

The ownership interest held by the Italian State and parastatal organizations in commercial enterprises in ceded territories.

3. The quantities and types of goods and services to be delivered shall be the subject of agreements between the Italian Government and the beneficiary governments, and shall be selected and deliveries scheduled in such a way as to avoid interference with the economic reconstruction of Italy and the imposition of additional liabilities on other Allied and Associated Powers.

Agreements concluded under this paragraph shall be communicated to the Four Ambassadors in Rome of the USSR, UK, USA and France. (The USA, UK, and France agree that the Four Ambassadors should be given wider powers. In any event, Article 76 must provide a procedure in the event of disputes after 18 months.)

4. The governments beneficiary of reparation from current industrial production shall furnish to Italy on commercial terms the materials which are normally imported into Italy and which are needed for the production of these goods. Payments for these materials shall be made by deducting the value of the materials furnished from the value of the goods delivered.

5. The basis for calculating the settlement provided in this Article will be the United States dollar at its gold parity on the 1st July, 1946, i.e. 35 dollars for an ounce of gold.

6. The Four Ambassadors shall determine the value of the Italian assets to be transferred to the beneficiary governments.

C—Special provision for earlier deliveries.

(USA, France and USSR Proposal)

With respect to deliveries of current industrial production, capital-goods and services, nothing in either paragraph A or paragraph B shall be deemed to prevent deliveries during the first two years, if such deliveries are made in accordance with agreements between the Italian Government and a beneficiary government.

D—Reparations for other Powers.

Claims of the other Allied and Associated Powers shall be satisfied out of the Italian assets subject to their respective jurisdiction, under Article 69 of this Treaty.
Claims of countries receiving ceded territories, which are not mentioned in part B of the present Article, shall also be satisfied out of the ownership interests of Italian nationals, including both natural [Page 794] and juridical persons, resident in Italy, in companies of ceded territories engaged in the following services: water, gas, electricity and transport. The Italian interests thus transferred shall remain subject to all charges and liens held by natural or juridical persons not of Italian nationality.
USSR Proposal
The states not mentioned in the present Article and not benefiting under § 2 of this section and which have reparation claims against Italy arising out of the presence of Italian armed forces on their territory during the war, and which also took an active part with considerable military contingents in the operations against Fascist Italy, shall set off their governmental and private prewar debts to the Italian Government and Italian nationals against such claims.

Clause To Be Added in the Form of a Third Paragraph to Article 70

The Allied and Associated Powers declare that the rights attributed to them under Articles 64 and 69 of this Treaty cover all their claims and those of their nationals for loss and damage due to acts of war, including measures due to the occupation of their territory attributable to Italy and having occurred outside Italian territory, with the exception of claims based on Article 65.