Foreign Relations of the United States, 1946, Paris Peace Conference: Documents, Volume IV

CFM Files

Proposal by the Australian Delegation to the Economic Commission for Italy

C.P.(IT/EC) Doc.94

October 4, 1946.

Proposed New Part C of Article 64

1. There shall be an Italian Reparations Commission to co-ordinate and supervise the execution of the provisions of Part B of this Article.

2.

(a) The Italian Reparations Commission shall consist of a representative of each of the countries entitled to reparations under the provisions of Part B of this Article, together with a representative of the United States, the United Kingdom, the U.S.S.R., and France.

(b) The representative of the United States shall be president of the Commission.

(c) The Commission shall determine its own procedure.

(d) The Commission may employ such staff as it requires.

(e) The administration expenses of the Commission shall be met by the Italian Government.

(f) The members and staff of the Commission shall enjoy such diplomatic privileges as are necessary for the discharge of their functions.

3.

(a) The Commission shall co-ordinate and supervise the execution of the provisions of Part B of this Article with respect to reparations in the form of current production and industrial equipment.

(b) Each Government entitled to reparations under Part B shall, before completing its agreement with the Government of Italy, as provided in Part B, submit the proposed agreement to the Commission for its approval. The Commission will examine all such agreements in the light of the provisions of this Article and shall have special consideration for the need to avoid conflict or overlapping in the allocation of Italian production and resources among the several countries entitled to reparations.

(c) Each Government entitled to reparations under Part B shall make regular reports to the Commission on deliveries made in accordance with the approved Agreements. In the event of any failure by Italy to adhere to the schedule of deliveries or other terms of the agreement, the Commission shall investigate the reasons for such default and may, if it thinks fit:

(i) Impose penalties upon the Italian Government in cases where the remedy for the default, in the opinion of the Commission, is within the competence of the Italian Government (provided that the penalties imposed under this provision shall not exceed . . . . . per cent of the reparations deliveries due in the period of default) or

(ii) Order a postponement of deliveries, in whole or in part, for a specific period, or otherwise modify the terms of the agreements, in cases where such action is, in the opinion of the Commission, necessary to safeguard the interests of the countries entitled to reparations or is in the interest of the Allied and Associated Powers signatory to this Treaty.

(d) The Commission may, at the request of any of the Governments entitled to reparations, undertake on behalf of that Government such negotiations with the Italian Government and such executive functions as may be delegated to the Commission by that Government, to give effect to the provisions of this Article and the agreements made under it.

(e) The Commission shall prepare an annual report which shall be distributed to each of the Allied and Associated Powers signatory to the present treaty.