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

Record of Recommendations by the Conference on the Draft Peace Treaty With Italy

undated

I. By a majority of two-thirds or more.

a. Articles of the Draft Peace Treaty with Italy drawn up by the Council of Foreign Ministers, which were adopted without modification:

• Article 3.
• Article 4.
• Article 6.
• Article 7.
• Article 9.
• Article 10.
• Article 14.
• Article 15.
• Article 16, §§ 2, 4, 6^*
• Article 17.
• Article 21.
• Article 24.
• Article 25.
• Article 26.
• Article 27.
• Article 29.
• Article 30.
• Article 32.
• Article 33.
• Article 34.
• Article 35.
• Article 36.
• Article 37.
• Article 39.
• Article 43.
• Article 45.
• Article 46.
• Article 48.
• Article 52,§ 1^†
• Article 53.
• Article 54.
• Article 55.
• Article 56.
• Article 57.
• Article 58.
• Article 59.
• Article 60.
• Article 61.
• Article 62.
• Article 63.
• Article 64; Part A: §§ 1, 2 a and b, 3, 4 and 5.
• Article 65, § 2 to 8.
• Article 66, § 1 to 5.
• Article 67, § 1.
• Article 68, § 1, 2, 3, 5, 6, 7, 8.
• Article 69, § 1, 2, 3, 5a, 5c, 5d.
• Article 70, §§ 1 and 2.
• Article 71, § 1, subparagraphs a and b^‡, and § 2.
• Article 74.
• Article 75.
• Article 76 (U.K., U.S. and French proposal).
• Article 77.
• Article 78.
• Annex 2 (except part IV).
• Annex 4.
• Annex 5 A, B, C.
• Annex 6.
• Part A § 1, 2, 3, 5, 6 and 8.
• Annex 8.
• Part A.
• Part B (U.S. proposal supported by U.S.S.R.).

b. Articles of the draft peace treaty with Italy drawn up by the Council of Foreign Ministers, which were adopted with modification, and new recommendations:

• Preamble.
• Article 1.
• Article 2.
• Article 5.
• Article 8.
• Article 10a (new article).
• Heading of Section IV.
• Article 11.
• Article 11a (new article).
• Article 12.
• Article 13.
• Article 13a (new article).
• Article 16:
• U.S. proposal (part a);
• French proposal;
• Soviet proposal (points 5 and 6).
• Article 18.
• Article 19.
• Article 20.
• Article 23.
• Article 28.
• Article 31.
• Article 38.
• Article 40.
• Article 41.
• Article 42.
• Article 44.
• Article 46a (new article).
• Article 46b (new article, former art. 52, §2).
• Article 47.
• Article 49.
• Article 50.
• Article 51.
• Article 62a (new article).
• Article 64:
• Part A, §§ 2c and 6;
• Part B:
• Reparation to Ethiopia $25 million;
• Equal reparation to Greece and Yugoslavia;
• Reparation to Greece $100 million.
• Part C.
• Part D.
• Article 65, § 1 and 9.
• Article 66, § 6.
• Article 67, § 2.
• Article 68, § 4c, 4d.
• Article 69, §§ 4, 4a, 5b and 5e.
• Article 70, § 3 (new paragraph).
• Article 71, § 1c (civil aviation).
• Article 72 (new text).
• Article 73.
• Annex 1, footnote.
• Annex 1a (new annex);
• Annex 2, part IV.
• Annex 5. D.
• Annex 6:
• Part A, § 4 and 7;
• Part B.
• Annex 7:
• Inapplicability of Annex 7 as between U.S. and Italy.

II. Adopted by a simple majority.

a. Articles of the Draft Peace treaty with Italy drawn up by the Council of Foreign Ministers, which were adopted without modification:

• Article 16, § 1.
• Article 22.
• Annex 7, Part III (U.K. proposal).

b. Articles of the Draft Peace treaty with Italy drawn up by the Council of Foreign Ministers, which were adopted with modification and new recommendations:

• Addition by the Australian Delegation to Article 64, part B, § 3.
• Article 68, § 4a and 4b.
• Amendment to Article 71 (time limit).
• Article 71, § 1c, (State monopolies).
• Article 74 bis.
• Article 77a.

III. Articles referred to the Council of Foreign Ministers, without recommendations:

• Article 16: U.S. proposal (part b.).
• Annex 3 (and related amendments and proposals).
• Annex 9 (and related amendments and proposals).
• Annex 13 (U.S. proposal).

texts

I—New Articles and Modification to Articles of the Draft Treaty With Italy Adopted by a Majority of Two-Thirds or More

Preamble

Paragraph 1: without modification.

Whereas Italy under the Fascist regime became a party to the Tripartite Pact with Germany and Japan, undertook a war of aggression and thereby provoked a state of war with all the Allied and Associated Powers and with other United Nations, and bears her share of responsibility for the war; and

Whereas, in consequence of the victories of the Allied forces, and with the assistance of the democratic elements of the Italian people, the Fascist regime in Italy was overthrown, on July 25, 1943, and Italy, having surrendered unconditionally, signed terms of Armistice on September 3 and 29 of the same year; and

Whereas after the said Armistice the Italian armed forces, both of the Government and of the Resistance Movement, took an active part in the war against Germany, and Italy declared war on Germany as from October 13, 1943, and thereby became a co-belligerent against Germany, and

Whereas the Allied and Associated Powers and Italy are respectively desirous of concluding a treaty of peace which, in conformity with the principles of justice, will settle questions still outstanding as a result of the events hereinbefore recited and will form the basis of friendly relations between them, thereby enabling the Allied and Associated Powers to support Italy’s application to become a member of the United Nations and also to adhere to any convention concluded under the auspices of the United Nations.

Paragraph 6: without modification.

Article 1

The frontiers of Italy shall be those existing on January 1, 1938, subject to the modifications set out in Articles 2, 3 …¹ These frontiers are traced on the maps attached to the present treaty. In case of a discrepancy between the textual description of the frontiers and the maps, the text shall be deemed to be authentic.

Article 2

Paragraph 1: First three points: without modification.

Point 4: Upper Tinee, Vesubie and Roya Valleys.

The frontier shall leave the present frontier at Colla Lunga, shall follow along the water-shed by way of Mont Clapier, Col de Tenda, Mont Marguareis whence it shall run southward by way of Mont Sac-carello, Mont Vacche, Monte Pietravecchia, Mont Lega and shall reach a point approximately 100 meters from the present frontier near Colla Pegairole, about 5 kilometers to the North East of Breil; it then shall run in a south westerly direction, and shall rejoin the existing frontier approximately 100 meters South West of Monte Mergo.

Paragraph 2:

The detailed description of those sections of the frontier which correspond to modifications 1, 2, 3 and 4, above is contained in Annex 1a to the present treaty, and the maps to which this description refers are part of Annex 1.

Article 5

Paragraphs 1, 2, 3 and 4: without modification.

Paragraph 5 (new paragraph):

For the purpose of determining on the spot the exact frontier laid down in Articles 3, 4, and 16, the Commissioners shall be Mowed to depart by 0.5 kilometer from the line laid down in the present treaty in order to adjust the boundary to local geographical and economic conditions, provided that no village or town of more than 500 inhabitants, no important railroads or highways, and no major power or water supplies are placed under a sovereignty contrary to the delimitations laid down in the present Treaty.

Article 8

Paragraph 1: without modification.

Paragraph 2:

The Italian Government undertakes to authorize, free of customs duty and inspection, passport and other such formalities, the passenger and freight railway traffic travelling on the connection thus established, through Italian territory, from one point to another in France, in both directions; furthermore, to take all necessary measures to ensure that the French trains using the said connections are allowed to pass, under the same conditions, duty free and without in justifiable delay. The necessary arrangements shall be concluded in due time between the two Governments.

Article 10a (new article)

The Allied and Associated Powers have taken note of the provisions (of which the text is annexed to the present treaty) agreed upon by the Austrian and Italian Governments on September 5, 1946, giving certain guarantees to the German speaking inhabitants of the province of Bolzano and the neighbouring bilingual townships of the province of Trento.

Section IV.—People’s Federative Republic of Yugoslavia (special clauses)

Article 11

Paragraph 1a: without modification.

Paragraph 1b:

The area bounded:

• — On the North by parallel 45° 17' N.
• — On the South by parallel 44° 23' N.
• — On the West by a line connecting the following points:

  1. 45° 17' N.—13° 23' E.

  2. 44° 51' N.—13° 37' E.

  3. 44° 23' N.—14° 18' 30" E.

On the East by West coast of Istria, the islands and the mainland of Yugoslavia.

Paragraph 2: without modification.

Article 11a

1. Italy shall restore to Yugoslavia all objects of artistic, historical, scientific, educational or religious value (including all deeds, manuscripts, documents and bibliographical material) as well as administrative archives (files, registers, plans or documents of any kind) which, as the result of the Italian occupation, were removed between November 4, 1918 and March 2, 1924, from the territories ceded to Yugoslavia under the treaties signed in Rapallo, on November 12, 1920, and in Rome, on January 27, 1924. Italy shall also restore all objects belonging to those territories and falling into the above categories, removed by the Italian Armistice Mission which operated in Vienna after the first World War.

2. Italy shall deliver to Yugoslavia all objects having juridically the character of public property and coming within the categories in paragraph 1 of the present Article removed since November 4, 1918, from the territory which wider the present Treaty is ceded to Yugoslavia, and those connected with the said territory which Italy received from Austria and Hungary under the Peace treaties signed in St. Germain on September 10, 1919 and in Trianon on June 4, 1920, and under the convention signed between Austria and Italy in Vienna on May 4, 1920.

3. If, in particular cases, Italy is unable to restore or hand over to Yugoslavia the objects coming under paragraph 1 and 2 of the present Article, she undertakes to hand over to Yugoslavia similar objects, in accordance with the provisions of par. 9 of Article 65 of the present Treaty.

Article 12

Paragraph 1:

Italy cedes to Greece in full sovereignty the Dodecanese islands indicated hereafter, viz. Astypalaia, Rhodes, Chalk, Scarpanto, Cassos, Piscopi (Tilos), Nisyros, Calyrrmos, Leros, Patmos, Lipsos, Symi, Cos and Castelloriso as well as the islets dependent on all the above islands. These islands shall be and shall remain demilitarized.

Paragraph 2: without modification.

Article 13

Paragraphs 1, 2 and 3: without modification.

Paragraph 4 (new paragraph):

The State to which the territory is transferred shall secure to all persons within the territory, without distinction as to race, sex, language or religion, the enjoyment of human rights and of the fundamental freedoms including freedom of expression, of press and publication, of religious worship, of opinion and public meeting.

Article 13a (new article)

1. Within a period of one year from the coming into force of the present Treaty, Italian citizens over 18 years of age (or married persons whether under or over that age), whose customary language is one of the Yugoslav languages (Serb, Croat or Slovene), and who are domiciled on Italian territory may upon filing an appropriate request with the Yugoslav diplomatic or Consular Representatives in Italy, acquire Yugoslav nationality if the Yugoslav authorities accept their request.

2. In such cases, the Yugoslav Government will communicate to the Italian Government through diplomatic channels lists of persons who have thus acquired Yugoslav nationality. The persons mentioned in such lists will lose their Italian nationality on the date of such official communication.

3. The Italian Government may require such persons to transfer their residence to Yugoslavia within a period of one year from the date of the official communication.

4. The rules relating to the effect of options on wives and on children set forth in Article 13, par. 2, shall apply.

5. All provisions applying to the transfer of properties belonging to persons who opt for Italian nationality under Annex 3 par. 6 of the present Treaty, shall equally apply to transfers of properties belonging to persons who opt for Yugoslavia according to this Article.

Article 16

At present consisting of paragraphs 2, 4, 6 of Article 16 of Draft Treaty and of following proposals:

U. S. Proposal (Part 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 assured by the Security Council of the United Nations.

2. (Description of the frontiers) …

3. Italian sovereignty over the territory lying between the Adriatic Sea and the boundaries defined in Article 4 of the treaty 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 in accordance with a provisional regime to be established by the Security Council, which shall remain in force until such date as the Security Council shall fix for the coming into force of a permanent Statute which shall have been approved by it. The Free Territory shall thenceforth be governed by the provisions of such permanent Statute.

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.

French Proposal (to the Political and Territorial Commission for Italy).

The Commission,

I. Having taken note of the report of the Sub-Commission on the Statute of the Free Territory of Trieste,

Approves those provisions in the draft Statute on which unanimous agreement has been reached by the Sub-Commission.

II. Approves paragraphs 2, 4 and 6 of the decision of the Council of Foreign Ministers of July 3, 1946, which appears under Article 16 of the Draft Peace Treaty.

III. And in order to facilitate the elaboration by the Council of Foreign Ministers of the Permanent Statute, the Free Port Regime, and the Provisional Regime, the Commission

Recommends that:

The principles contained in these paragraphs should be expanded in the Permanent Statute as follows:

1. The integrity and independence of the Free Territory is assured by the Security Council. This responsibility implies that the Council shall:

a. ensure the observance of the Permanent Statute and in particular protect the basic human rights of the inhabitants.

b. assure the public order and security in the Free Territory.

2. The Free Territory shall be demilitarized. No armed forces, except upon direction of the Security Council, shall be allowed in the Free Territory.

3. In conformity with the principle that the legislative and executive authority of the Free Territory shall be established on democratic lines, the Permanent Statute of the Free Territory shall provide for the creation of a popular Assembly elected on the basis of proportional representation by means of a universal, direct, equal and secret suffrage, and a Council of Government formed by and responsible to the Assembly.

4. By reason of the responsibilities imposed upon the Security Council in the Free Territory it is inevitable that certain limitations shall be imposed upon the Powers of the popular Assembly and the Council of Government. These limitations result from the rights now conferred upon the Governor, subject to any modification which the Security Council may subsequently determine.

5. The Governor shall be appointed by the Security Council after consultation with Yugoslavia and Italy. He shall be the representative of the Security Council in the Free Territory, and shall in particular have the duty of supervising the observance of the Statute.

6. In matters which in his view affect the responsibilities of the Security Council as defined in paragraph 1 above the Governor shall have the right to propose legislation to the popular Assembly and to prevent the entry into force of legislative measures subject to reference to the Security Council if the popular Assembly does not accept his views and recommendations.

7. In the meetings of the Council of Government, the Governor shall express his views on all matters affecting his responsibilities.

8. The primary responsibilities of the Governor would be:

a. The maintenance of public order and security.

b. The conduct of foreign relations in the closest liaison with the elected authorities of the Territory.

c. The appointment of the judiciary on the advice of the Council of Government and, subject to safeguards to be established by the Constitution, the removal of members of the judiciary for conduct incompatible with their judicial office.

9. When as a result of exceptional circumstances, the independence and integrity of the Free Territory, public order and security, or the human and civic rights of the inhabitants are endangered, the Governor may take all necessary measures subject to his making an immediate report to the Security Council. Under the same reservation he may proclaim a state of siege.

10. Citizenship:

a. Domicile in the Free Territory on June 10th, 1940, as provided in Article 13 of the Peace Treaty with Italy shall be the qualification for original citizenship of the Free Territory.

b. The conditions for the acquisition of citizenship by persons not qualifying for original citizenship shall be determined by the Assembly of the Free Territory and embodied in the Constitution.

11. Free port and economic questions.

a. A Free Port Regime is desirable irrespective of whether or not it is ultimately decided that the whole Territory shall be a Free Customs Zone.

b. The establishment of special zones under the exclusive jurisdiction of any country is incompatible with the status of the Free Territory and of the Free Port.

c. Freedom of transit shall be assured to goods and means of transport between the Free Port and the States which it serves, without any discrimination and without customs or fiscal charges, by the States whose territories are traversed.

c. Economic union or associations of an exclusive character with any State are incompatible with the status of the Free Territory.

Provisional Government

a. From the date of the entry into force of the Treaty of Peace until the entry into force of the Permanent Statute, the Provisional Government of the Free Territory will be organized by the Security Council which in particular will appoint a Governor and define his powers.

b. The Security Council shall fix the date or dates for the withdrawal of foreign troops stationed in the Free Territory.

IV. The Commission recommends that the Council of Foreign Ministers gives an opportunity to a representative of the People’s Federative Republic of Yugoslavia to present his views before final decision is reached.

The Commission likewise recommends that a representative of Italy be heard by the Council of Foreign Ministers.

U. S. S. R. Proposal (points 5 and 6).

5. The Governor shall be responsible for the observance of the Statute of the Free Territory.

6. Legislative authority shall be exercised by a popular assembly elected by means of universal, equal, direct and secret suffrage, irrespective of sex, on the basis of proportional representation.

Article 18

Italy renounces in favour of China all benefits and privileges resulting from the provisions of the final protocol signed at Peking on September 7, 1901 and all annexes, notes and documents supplementary thereto, and agrees to the abrogation of the said protocol, annexes, notes and documents in respect of Italy. Italy likewise renounces any claims thereunder to an indemnity.

Article 19

Italy agrees to the cancellation of the lease from the Chinese Government under which the Italian Concession at Tientsin was granted, and to the transfer to the Chinese Government of any property and archives belonging to the municipality of the said Concession.

Article 20

Italy renounces in favour of China the rights accorded to Italy in relation to International Settlements at Shanghai and Amoy and agrees to the reversion of the said Settlements, to the administration and control of the Chinese Government.

Article 23

Italy formally renounces in favour of Albania, all property (apart from normal diplomatic and consular premises), rights, concessions, interests and advantages of all kinds acquired before or after 1939, by the Italian State or its parastatal institutions in Albania, or belonging to them. Italy also renounces all claims to special interests or influence in Albania, which she acquired as the result of the aggression of April 7, 1939, or which may have been granted to her under earlier bilateral instruments.

Other Italian property and other economic relations between Albania and Italy will come under the economic clauses of this Treaty applicable to the Allied or Associated Powers.

Article 28

Paragraph 1:

Italy formally renounces in favour of Ethiopia all property (apart from normal diplomatic or consular premises) rights, interests and advantages of all kinds acquired at any time in Ethiopia by the Italian State, as well all parastatal property as defined in paragraph 1 of Annex 3 to the present Treaty.

Paragraph 2: without modification.

Article 31

Within 18 months following the entry into force of the present Treaty, Italy will restore all Ethiopian works of art, religious objects, archives and objects of historical value removed from Ethiopia to Italy since October 3, 1935.

The date from which the provisions of the present Treaty shall become applicable as regards all measures and facts of any kind whatsoever entailing the responsibility of Italy or of Italian nationals towards Ethiopia, shall be held to be on October 3, 1935.

Article 38

Paragraph 1:

1. Italy shall take all necessary steps to ensure the apprehension and surrender for trial of:

(The rest remains unchanged.)

Article 40

Paragraph 1, sub-paragraphs a and c: without modification.

Paragraph 1, sub-paragraph b:

This system is deemed to comprise only Artillery and infantry fortifications whether in groups or separated, pillboxes of any type, protected accommodation for personnel, stores and ammunition, observation posts and military cableways, whatever may be their importance and actual condition of maintenance or state of construction and which are constructed of metal, masonry or concrete or excavated in the rock.

Paragraph 2, 3 and 4: without modification.

Article 41

Paragraph 1, sub-paragraphs a and c: without modification.

Paragraph 1, sub-paragraph b:

These fortifications and installations are deemed to comprise only Artillery and infantry fortifications whether in groups or separated, pillboxes of any type, protected accommodation for personnel, stores and ammunition, observation posts and military cableways, whatever may be their importance and actual condition of maintenance or state of construction and which are constructed of metal, masonry or concrete or excavated in the rock.

Paragraphs 2, 3, 4 and 5 without modification.

Article 42

The word “completely” is to be deleted before the word “demilitarized”.

Article 44

Italy shall not possess, construct or experiment with (i) any atomic weapon (ii) any self-propelled or guided missiles or apparatus connected with their discharge (other than torpedoes and torpedo launching gear inherent to naval vessels permitted by this Treaty) (iii) any guns with a range of over 30 kilometers (iv) sea-mines or torpedoes of non-contact types actuated by influence mechanisms (v) any torpedoes capable of being manned.

Article 46a (new article)

In no case shall any officer or non-commissioned officer of the former Fascist Militia or of the former Fascist Republican Army be admitted with officer’s or non-commissioned officer’s rank to the Italian Army, Navy, Air Force or Carabinieri, with the exception of such persons as have been exonerated by the appropriate body in accordance with Italian law.

Article 46b (new article)

The total number of heavy and medium tanks in the Italian Armed Forces shall not exceed 200.

Article 47

1. The present Italian Fleet shall be reduced to the units listed in Annex 4 A.

2. Additional units not listed in Annex 4, and employed only for the specific purpose of minesweeping, may be retained until the end of the minesweeping period as determined by the International Central Board for Mine Clearance of European Waters, but are to be handed over to their owners or to be demilitarised, with a view to civilian use, within two months of the end of the said period.

Article 49

1. Italy shall effect the following disposal of submarine and non-operational naval vessels. Time-limits specified below should be taken as commencing with the coming into force of the present Treaty.

a. Surface naval vessels afloat not listed in Annex 4, including naval vessels under construction afloat, shall be destroyed or scrapped for metal within nine months.

b. Naval vessels under construction on slips shall be destroyed or scrapped for metal within nine months.

c. Submarines afloat and not listed in Annex 4 B shall be sunk in the open sea in a depth of over a hundred fathoms within three months.

d. Naval vessels sunk in Italian harbours and approach channels, in obstruction of normal shipping, shall be destroyed by demolition, or may be salvaged and subsequently destroyed or scrapped for metal within two years.

e. Naval vessels sunk in shallow Italian waters, not in obstruction of normal shipping, shall, within one year, be rendered incapable of salvage.

f. Naval vessels capable of reconversion, which do not come within the definition of war material and which are not listed in Annex 4, may be reconverted to civilian uses or are to be demolished within two years.

Article 50

1. No battleship shall be constructed, acquired or replaced by Italy.

5. Italy undertakes not to acquire or lay down any war vessels before January 1, 1950, except as necessary to replace any ship, other than a battleship, accidentally lost, in which case the displacement of the new ship is not to exceed by more than 10% the displacement of the ship lost.

6. The terms used in this Article are, for the purposes of the present treaty, defined in Annex 5 A.

Article 51

Paragraph 1: without modification.

Paragraph 2:

During the period of minesweeping due to the war, Italy shall be authorised to employ for this purpose an additional number of officers and men not to exceed 2,500, such period to be determined by the International Central Board for Mine Clearance of European Waters.

Article 62a (new article)

As from the entry into force of the treaty Italy will be invited to join the Mediterranean Zone Board of the International Organisation for Mine Clearance of European Waters, and she undertakes to maintain at the disposal of the Central Mine Clearance Board the whole of her minesweeping forces until the end of the post-war mine clearance period, as determined by the Central Board.

Article 64

a. reparation for u.s.s.r.

2c.

Italian current industrial production, including production by extractive industries.

6 (new paragraph).

The basis of calculation for the settlement provided in this Article will be the U.S. dollar at its gold parity on July 1, 1946, i.e. 35 dollars for one ounce of gold.

b. reparations for albania, ethiopia, greece and yugoslavia

1. Italy shall pay reparation to the following countries:

— Albania in the amount of $	million;
— Ethiopia in the amount of $	million;
— Greece in the amount of $	million;
— Yugoslavia in the amount of $	million.

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. 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 this treaty.

b. Italian current industrial production, including production by extractive industries.

c. All other categories of capital goods or services, including either or both or 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, but excluding Italian assets subject by virtue of Article 69 to the jurisdiction of the powers enumerated in paragraph 1 of part B of this Article. Payments effected under this paragraph may include seeds.

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.

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 one ounce of gold.

6. The Four Ambassadors shall determine the value of the Italian assets to be transferred to the countries referred to in paragraph 1, Part B of this Article.

7. Claims of the Powers mentioned in paragraph 1 of Part B of this Article in excess of the reparations allocated under the same paragraph, shall be satisfied out of the Italian assets subject to their respective jurisdictions under Article 69 of this Treaty.

c. special provision for earlier deliveries

With respect to deliveries of current industrial production, capital goods and services such as those provided in Part A, subparagraph 2c, and in Part B, paragraph 2, subparagraphs b and c, nothing in either Part A or Part B of the present Article 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 beneficiary government.

d. reparations for other powers

1. Claims of the other Allied and Associated Powers shall be satisfied out of the Italian assets subject to their respective jurisdictions, under Article 69 of this Treaty.

2. Claims of countries receiving ceded territories in application of the present Treaty 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 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.

Article 65

Paragraph 1:

Italy accepts the principles of the United Nations Declaration of January 5, 1943, and will return in the shortest possible time property removed from United Nations territories.

Paragraph 9 (new paragraph):

• If in particular cases, it is impossible for Italy to make restitution of objects of artistic, historic or archeological value belonging to the cultural heritage of the United Nation from which such objects were removed by force or duress by Italian forces, authorities or nationals, Italy undertakes to transfer to the United Nation concerned objects of the same kind as, and of substantially equivalent value, to the objects removed, in so far as such objects are obtainable in Italy.

Article 66

Add following subparagraph:

This provision is without prejudice to the application of Article 69 and of Annex 3.

Article 67

Paragraph 2 (new paragraph):

Italy agrees to take all necessary measures for facilitating such transfers of German assets in Italy as may be determined by those of the Powers occupying Germany which are empowered to dispose of German assets in Italy.

Article 68

Paragraph 4 c and d (new text).

c. Compensation shall be paid free of any levies, taxes or other charges. It shall be freely usable in Italy but shall be subject to the foreign exchange control regulations which may be in force in Italy from time to time.

d. The Italian Government shall grant United Nations nationals an indemnity in lire sufficient to compensate, at the date of payment, the losses and damage due to the special measures applied to their property during the war, and which were not applicable to Italian property.

Article 69

Paragraph 4:

The words “literary or artistic” are to be deleted after the word “industrial” on lines 2 and 7 of the English text.

Paragraph 4a (new paragraph):

4. a. Italian submarine cables linking points in Yugoslavia shall be deemed to be Italian property in Yugoslavia, despite the fact that lengths of these cables may lie outside the territorial waters of Yugoslavia.

b. Italian submarine cables linking a point in the territory of an Allied or Associated Power with a point in Italian territory shall be deemed to be Italian property within the meaning of this Article, so far as concerns the terminal facilities and the lengths of cables lying within territorial waters.

Paragraph 5b:

Property belonging to religious bodies or private charitable institutions and used exclusively for religious or charitable purposes.

Paragraph 5e:

Literary and artistic property rights.

Article 70

Paragraph 3 (new paragraph):

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 hawing occurred outside Italian territory, with the exception of claims based on Articles 65 and 68.

Article 71

Paragraph 1, subparagraph c (civil aviation):

It is further understood that this paragraph shall not apply to civil aviation but that Italy will grant no exclusive or discriminatory right to any country with regard to the operation of civil aircraft in international traffic, will afford all the United Nations equality of opportunity in obtaining international commercial aviation rights in Italian territory, and with regard to the operation of civil aircraft in international traffic will grant, on a reciprocal and non-discriminatory basis to all United Nations, the right to fly over Italian territory without landing or to land for non-commercial purposes.

2. Or retain without deletion or addition the text proposed by the United States Delegation as an addition to sub-paragraph c.

Article 72 (new text)

a. Whenever the execution of the provisions of the present Treaty so requires, a Mixed Arbitral Tribunal for the settlement of disputes arising wader Articles 65 or 68 or Annexes 6, 7 or 8 shall be established at the request of any of the Allied and Associated Powers or Italy. Each of these Tribunals shall be composed of three members. Within two months after the date of such request, each of the Governments concerned shall designate one member. The President shall be selected, from among the nationals of a third power, by agreement between the two governments concerned. In the absence of such agreement, either government may request the President of the International Court of Justice, to designate the third member of the Mixed Arbitral Tribunal.

In the event of the death or resignation of a member of the Tribunal, or his inability for any reason to perform his functions, the same procedure shall be followed for his replacement as was followed in making the initial appointment.

The decision of the majority of the members shall be the decision of the Tribunal.

b. When any Mixed Arbitral Tribunal is established under paragraph a, it shall have jurisdiction over all disputes which may thereafter arise between the Allied or Associated Power concerned and Italy in the application or interpretation of Articles 65 and 68 and Annexes 6, 7 and 8 of the present Treaty, and shall perform the functions attributed to it by those provisions.

c. Each Mixed Arbitral Tribunal shall determine its own procedure, adopting rules conforming to justice and equity. It shall have the power to determine the amounts to be paid by the losing party as costs and expenses of proceedings.

d. Each government shall pay the salary of the member of the Mixed Arbitral Tribunal whom it appoints and of any agent whom it may designate to represent it before the Tribunal. The salary of the President shall be fixed by special agreement between the governments concerned and this salary, together with the common expenses of each Tribunal, shall be paid in equal shares by the two governments.

e. The Contracting Parties undertake that their courts and authorities shall furnish directly to the Mixed Arbitral Tribunals all assistance which may be within their power, especially with respect to the forwarding of notifications and the collection of evidence.

f. The Contracting Parties agree to consider the decisions of the Mixed Arbitral Tribunal as definitive and to render them binding upon their nationals.

g. The seat of the Mixed Arbitral Tribunal shall be chosen by agreement between the two governments concerned. In the absence of such agreement the seat shall be chosen by the President of the Mixed Arbitral Tribunal.

Article 73

Articles 65, 68, 71 and Annex 8 of the present Treaty shall apply to the Allied and Associated Powers and to those of the United Nations which have broken diplomatic relations with Italy or with whom Italy has severed diplomatic relations. These Articles and Annex shall also apply in the case of Albania and Norway.

Annex 1

Note.

The Conference assumed that adequate and sufficiently detailed maps corresponding to the various territorial clauses will be annexed to the Treaty.

Annex 1a

Detailed Description of the Sections of the Franco-Italian Frontier Which Correspond to the Modifications Provided for Under Article 2

little saint-bernard-pass

Reference: 1/20,000 map, Sainte-Foy Tarentaise 1–2.

The new frontier follows a line which starts from the rocky ridge of Lance-branlette, then, descending towards the east, follows the line of the watershed to the 2,180 metre level, whence it passes to the Colonna Joux (2188). From there, still following the line of the watershed, it reascends on to Costa del Belvedere, the rocky outcrops of which it follows, climbs Mt-Belvedere, skirting its summit and leaving the latter in French territory 120 metres away from the frontier and, passing through points 2570, 2703, Bella Valetta and point 2746, it rejoins the old frontier at Mt-Valaisan.

mont-cenis plateau

Reference: 1/20,000 maps of Lanslebourg 5–6 and 7–8 and of Mont-d’Ambin 1–2.

The new frontier follows a line which leaves the old frontier at Mt-Tour, follows westwards the administrative boundary shown on the map, follows the T. Vitoun as soon as it meets it on its northern branch and descends along it as far as Rca della Torretta.

Then following the line of rocky outcrops, it reaches the stream coming from the Alpe Lamet and descends with it as far as the base of the rocky escarpment along which it runs for about 800 metres as far as the thalweg at a point situated about 200 metres north of point 1805.

Then it mounts to the top of the landslips which overlook Ferrera Cenisio about 300 metres away and, continuing westward, meets the road which skirts the east of Rne Paradiso 400 metres west of the loop (1854), leaving it immediately and bending southward.

It cuts the Bar Cenisia road at a point about 100 metres southeast of Refuge 5, crosses the thalweg in the direction of Lago S. Giorgio, follows contour 1900 for some distance up as far as point 1907, then skirts the southern side of Lago d’Arpon and rejoins the rocky ridge on which it remains in a southwesterly direction as far as the confluence of the streams coming from the Bard glacier (Ghicciajo di Bard) at a point approximately 1,400 metres southwest of Lago d’Arpon.

From there, bending southwards, it follows contour 2500 more or less, goes as far as point 2579 then, running along contour 2600, it reaches the Lago della Vecchia and rejoins, at the administrative boundary marked on the map about 700 metres southeast of the lake, the Pso d’Avanza path, which it follows along the rocky escarpments to the old frontier, half-way between the Col de la Vecchia and the Col de Clapier.

mont-thabor

Reference: 1/20,000 maps of Nevache 1–2, 5–6 and 7–8.

From Cime de la Pianette to Rocher de Guion (Cima del Sueur).

The new frontier follows a line which leaves the old frontier at Cime de la Pianette and, proceeding southwards, follows the ridge through points 2980, 3178 Rca Bernaude (3228), points 2842, 2780, 2877, Pso della Gallina (2671), points 2720, 2806 and Pta Quattro Sorelle (2700).

Descending the eastern slope of this summit, the line leaves in French territory the point marked 2420, whence it rejoins and follows on the east of the path leading to the buildings situated about 200 metres from point 2253, this path and these buildings being left in French territory. It then enters a thalweg, passing about 300 metres northeast of point 1915, whence it reaches the northwestern edge of the reservoir which, in the Vallee Etroite (Valle Stretta) feeds the hydro-electric installations of Sette Fontane, leaving this reservoir and these installations in Italian territory. Skirting the reservoir on the south, it reaches the crossroads at point 1499.

Thence it follows the path which hugs the edge of the woods along contour 1500 and which leads it to Comba della Gorgia near the 1580 contour; then it ascends the thalweg to point 1974 and joins the edge of the rocky escarpments of La Sueur as marked by points 2272, 2268, 2239, 2266, 2267, remaining on this edge until it meets the old frontier, the crest of the rocks and the path bordering it remaining in French territory.

chaberton

Reference: 1/20,000 maps of Briangon, Nos. 3–4.

The new frontier follows a line which leaves the old frontier at point 3042 (north of point 3070 and north of Pointe des Trois Scies) and follows the rocky ridge as far as Croco del Vallonetto.

From the Croco del Vallonetto it bends towards the South and along the rocky ridge, meets the Chaberton road at the point where the latter enters the cirque of the “Clot des Morts”.

Crossing this road and the thalweg which borders it, the line more or less follows (for 1250 metres) contour 2300 which, on the ground, follows to the south-southwest a series of rocky outcrops and debris, then it cuts straight across the eastern slope of Mt-Chaberton, reaches a point about 400 metres west of point 2160 leaving in French territory the intermediate pylon of the cable railway which stands there.

Then it proceeds in a straight line, across a series of rocky barriers and steep ravines, towards the position (not marked on the map) of La Fontaine des Chamois, near point 2228 (about 1 km. 400 metres northeast of Clavières) which it skirts to the east, following the second bend of the road joining this position with the fortified barracks of Chaberton (on the road from Cezanne to Clavières leaving the fortifications at La Fontaine des Chamois in French territory.

Thence following first in a southerly direction the communal boundary marked on the map, and then the rocky barrier about 400 metres north of the Clavières-Cézanne (Cesana) road, it bends towards the southwest, passing along the foot of the rocky cliffs, sufficiently far from the latter to allow the construction of a double-track road.

Skirting in this way to the north the village of Clavières, which is left in Italian territory, it meets the Rio Secco about 200 metres upstream from the Clavières bridge and follows down its course, then that of the Doire Ripaire (Doria Riparia) as far as the road from Clavières to Val Gimont, which is left to Italy, and follows this road as far as the bridge over the Gimont.

Proceeding up the course of the latter, for about 300 metres, the line then leaves it and follows the mule-track which takes it to the upper pylon of the Clavières cable railway (Col du Mont Fort du Bceuf), which is left in French territory. Then, following the ridge, it rejoins the present frontier at Mont la Plane, frontier post 251. The road in the valley of the Gimont is left in Italian territory.

upper valleys of la tinée, la vésubie and la roya

1. From Cime de Colla Longa to La Cima di Mercantour.

References: 1/20,000 maps of St-Etienne-de-Tinée 3–4 and 7–8, Les Trois Points 5–6.

The new frontier follows a line which leaves the old frontier at Cime de Colla Longa and proceeding eastwards and following the line of the watershed, skirts the rocky ridge, passing through points 2719, 2562, Cle di Seccia, reaches at point 2760 the Testa dell’Autaret, passes to point 2672, to the Cle della Guercia (2456) and through points 2640, 2693, 2689, reaches Le Rocche di Saboule and follows the northern ridge thereof.

Following the ridge, it passes through points 2537, 2513, Pso del Lausfer (2461) and point 2573 to Testa Auta del Lausfer (2587) whence it bends southwards as far as Testa Colla Auta, passing Cima del Lausfer (2544), and leaving the latter point in Italy.

Thence through point 2484, and along the ridge path which is left in French territory, through points 2240 and 2356, it crosses the Passo di S. Anna, and passing through points 2420 and 2447 it reaches a point about 80 metres south of point 2378 (Cima Moravacciera).

Following the ridge path left in French territory, it passes through Testa Ga del Caval and point 2331, both left in French territory, then leaving the path it continues on the ridge of Testa del’Adreck (2475) and through Cle della Lombarda and point 2556 and arrives at Cima della Lombarda (2801).

Bending southeastwards, it then follows the rocky ridge and passing through Pso di Peania, Cima di Vermeil, point 2720 left in French territory, Testa Cba Grossa (2792), Pso del Lupo (2730) and point 2936, reaches Mt-Malinvern.

Thence, in a southerly direction, through points 2701, 2612 and Cima di Tavels (2804), then in an easterly direction through point 2823, it reaches Testa del Claus (2889).

Then, bending in a general southeasterly direction, it crosses Passo delle Portette, passes to point 2814, to Testa delle Portette, to point 2868, to Testa Margiola (2831) to Caire di Prefouns (2840) to Passo del Prefouns (2620), to Testa di Tablasses (2851) to Passo di Bresses (2794), to Testa di Bresses (2820) and passing through Cima di Fremamorta (2731), Cle Fremamorta, point 2625, point 2675, and point 2539, Cima di Pagari (2686), Cima di Naucetas (2706), points 2660 and 2673, Cle di Ciriegia (2581) reaches Cima di Mercantour (2775).

2. From Cima di Mercantour to Mt-Clapier..

References: 1/20,000 map, Le Trois Points 5–6 and the Italian 1/20,000 map, Madonna delle Finestre.

From the Cima di Mercantour, it proceeds through point 2705, Cle Mercantour (2611), Cima Ghilie (2998), points 2939 and 2955, Testa della Rovina (2981), points 2844 and 2862, Paso della Rovina, the Caire dell’ Agnel (2935, 2867, 2784), Cima del Caire Agnel (2830), Cima Mallariva (2860), Cima Cairas (2831), Cima Cougourda (2881, 2921), Cima del Gaisses (2896), points 2766, 2824, Cima del Lombard (2842), points 2831, 2717, 2591, 2600 and 2582, Beccia Forno, Cima delle Finistre (2657), Col delle Finestre, points 2634, 2686 and 2917 and reaches Cima dei Gelas (3143) then through point 3070 to Cima della Maledia (3061), from whence it skirts the Passo del Pagari (2819) path and then, following the communal boundary shown on the map, it reaches the Paso di Mt-Clapier (2827), winds round the north and east of Mt-Clapier (3045) along the administrative boundary shown on the map.

3. From Mt Clapier to Cle di Tenda..

Reference: Italian 1/20.000 map: Madonna delle Finestre and Colle di Tenda.

From Mt. Clapier, the line follows the administrative boundary represented on the map by points 2915, 2887, and 2562, the Passo dell’ Agnel and point 2679, up to Cima dell’ Agnel (2775).

The line then bears eastward, still adhering to the administrative boundary represented on the map by points 2845 and 2843 of the Rce dell’ Agnel; it then reaches the Cima della Scandeiera (2706) crosses the Cle del Sab, proceeds over points 2373, 2226, 2303 and 2313 to Cima del Sabbione (2610), point 2636, Pta Peirafica, points 2609, 2585, 2572, 2550 and reaches Rca dell’ Abisso (2755).

The line still continues along the administrative boundary marked on the map up to the east of point 2360, then skirts the rocky outcrops north of the Rne Pian Misson, from whence it reaches the Mt. Becco Rosso path to the north of points 2181, 2116 and 1915 and then skirts the road for approximately 1 km. northward before rejoining the above-mentioned path up to the Colle di Tenda. The path and the section of highway mentioned above remain in French territory.

4. From the Colle di Tenda to the Cima Missun..

Reference: Italian 1/20,000 map: Tenda and Certosa di Pesio.

From the Tenda Passo the line, leaving the path in French territory, proceeds to points 1887 and 2206, then branches off the path to follow along the ridge the administrative boundary shown on the map, then passing through point 2262 reaches the Cima del Becco (2300).

Bearing northward and along the administrative boundary shown on the map it reaches the Col della Perla (2086) then follows the path which skirts the rocky outcrop in the Cima del Cuni to the Col della Boaira, where it leaves it to follow the ridge to the north. The above-mentioned path remains in French territory.

Skirting the rocky outcrop, it proceeds to point 2275, reaches the Testa Ciaudon (2386) skirts the rocky escarpments, crosses the Colla Piana (2219) and reaches point 2355 of Mt. Delle Carsene which is left on French soil, then it follows the northern ridge of this mountain over the Pta Straldi (2375), points 2321 and 2305 up to Pso Scarason, then swerves northward up to point 2352, where it meets the administrative boundary shown on the map and follows this boundary through points 2510 and 2532 up to Pta Marguareis.

Deviating southward it then follows the ridge, passes point 2585 and passing down the rocky crest, reaches the Colle del Lago dei Signori.

Following the path on the summit, which is left in French territory, then running along the crest proper, it comes to the Cima di Pertega (2402), passes along the rocky ridge down to the Cle delle Vecchie (2106) whence it follows the summit path, which it leaves in French territory, through points 2190, 2162, the Cima del Vescovo (2257) and the Cima di Velega (2366) up to Mt. Bertrand.

From Mt. Bertrand (2481) it follows the administrative boundary shown on the map up to the Cla Rossa, where it rejoins the summit path which its then skirts passing through points 2179 and 2252 up to the Cima Missun (2356) then, winding round the east of this mountain summit, the line follows the above-mentioned path which remains in French territory.

5. From the Cima Missun to the Col de Pegairole..

References: Points de Lugo maps 1–2 and 5–6 (Scale 1/20.000).

Following the same summit path, the line crosses the Cla Cravirora and passes east of point 2265 to Pta Farenga. It then leaves the path and winds round Cima Ventosa to the east, after which it joins the Passe di Tanarello path and leaves in France the constructional works beside this path. The line then passes along Mt. Tanarello, crosses the Passo Basora (2038), skirts Mt. Saccarello which is left approximately 300 m. to the westward, then following first the rocky ridge and then the path up to Pso de Collardente it reaches the ridge which leads up to Mt. Collardente, leaving point 1762 on French territory. At this point it skirts a path which is left in Italian terriory and comes to Mt. Collardente, leaving the path which crosses it on French soil and then follows this path through the Bassa di Sanson east and south of point 1789 up to the constructional works, situated approximately 500 metres east of the Testa della Nava (point 1934) which are left in French territory.

When it reaches these works, it leaves the road, rejoins at the ridge the road along the Testa della Nava ridge which remains in French territory, and follows it as far as the works to the south-east of the Cima di Marta or Mt. Vacche, skirting it from the east.

From there, passing along the ridge road left in French territory, it skirts Mt. Ceriana, leaves the road to reach Mt. Crai (2014) and joins it again at the Col (1875), follows it to skirt the Cima della Valetta and Mt. Pietravecchia as far as the rocky crest.

It then crosses the Cola dell’ Ineisa, runs by way of the ridge and point 1759 to Mt. Toraggio (1972), then to the Cima di Logambon and the Cola del Corvo, skirts Mt. Bauso and Mt. Lega (1552, 1563 and 1556) and follows the ridge downwards to the Passo di Muratone.

Along the ridge road, left in French territory, it runs to Mt. Scarassan, to the south of Mt. Battolino and of point 1358 and reaches Cla Pegairole.

6. From Cla Pegairole to Mt. Mergo..

References: Maps on the scale 1:20.000 of Pointe de Lugo 5–6 San Remo 1–2 and Menton 3–4.

From Cla Pegairole the line follows the administrative boundary which is marked on the map, leaving Cisterne to France, climbs Mt. Simonasso, drops as far as the Col and follows the road to Margheria Suan which it leaves in French territory, the chalets remaining in Italian territory.

Continuing to follow the road, left in French territory, it passes to east of Testa D’Alpe to the Fontaine dei Draghi, to the springs at point 1406, to point 1297, skirts the Cella Sgora on the east, passes the points 1088, 1016 and 1026, crosses the rocky ridge of Mt. Colombin, follows the cantonal boundary shown on the map along the Cima di Reglio (846 and 858), departs from this cantonal boundary in a southwesterly direction to follow the ridge of the Serra dell’ Arpetta (543, 474 and 416) down to the thalweg of the Roya, which it crosses about 200 metres northwest of the Bridge of Fanghetto.

The line then ascends the thalweg of Roya to a point situated about 350 metres from the above-mentioned bridge. It leaves the Roya at this point and bears southwest to point 566. From this point it bears west until it meets the ravine descending to Olivetta which it follows as far as the road, leaving the dwellings on this road in Italian territory, climbs the V. de Trono for about 200 metres and then turns towards point 410 as far as the road from Olivetta to San Girolamo. Thence it runs southeast along this road for about 100 metres and then bears generally southwest to point 403, running for about 20 metres along and to the south of the road marked on the map. From point 403, it follows the ridge of the Pta Becche as far as point 379, then again bearing southwest, crosses the T. Bevera, following the thalweg towards Mt. Mergo which it skirts on the south at about 50 metres from the summit (C. 686), left in French territory, and rejoins the old frontier at a point about 100 metres to the southwest of that summit.

Annex 2

Part IV.—Supervisory Technical Commission.

A Franco-Italian Supervisory Technical Commission comprising an equal number of French and Italian members shall be established to supervise and facilitate the execution of the foregoing guarantees which are designed to secure the same facilities as Italy enjoyed in respect of hydro-electric and water supplies from the Lake of Mont Cenis before the cession of this region to France. It shall also be within the functions of the Supervisory Technical Commission to cooperate with the French technical services, in order to ensure that the safety of the lower valleys is not endangered.

Annex 5

Part D (New part):

For the purpose of this Treaty the term “demilitarisation” shall be deemed to prohibit, in the territory and territorial waters concerned, all naval, military and military air installations, fortifications and their armaments; Artificial military, naval and air obstacles; the basing or the permanent or temporary stationing of military, naval and military air units; military training in any form; and the production of war materials. This does not prohibit internal security personnel restricted in number to meeting tasks of an internal character and equipped with weapons which can be carried and operated by one person, and the necessary military training of such personnel.

Annex 6

Part A, paragraph 4 (New Text):

The foregoing provisions concerning the rights of the Allied and Associated Powers or their nationals shall apply equally to Italy and its nationals. But nothing in these provisions shall entitle Italy or its nationals to more favourable treatment in the territory of any of the Allied and Associated Powers than is accorded by such Power in like cases to other United Nations or their nationals, nor shall Italy be required thereby to accord to any of the Allied or Associated Powers or its nationals more favourable treatment than Italy or its nationals receive in the territory of such Power in regard to the matters dealt with in the foregoing provisions.

Paragraph 7 (New Text):

Italy shall extend the benefits of Section A of this Annex to United Nations, other than Allied or Associated Powers, whose diplomatic relations with Italy have been broken off during the war and which undertake to extend to Italy the benefits accorded to Italy under Section A of this Annex.

Part B (New Text):

1. The Italian Government shall grant every facility to insurers who are nationals of the United Nations to resume possession of their former portfolios in Italy.

2. Should an insurer, being a national of any of the United Nations wish to resume his professional activities in Italy, and should the value of guarantee deposits or reserves required for the operation of insurance concerns in Italy be found to have decreased as a result of the loss or depreciation of the securities which constituted such deposits or reserves, the Italian Government undertakes to accept (for a period of three years) such securities as still remain as fulfilling the legal requirements in respect of deposits and reserves.

Annex 7

Inapplicability of Annex 7 as Between the U.S. and Italy

Having regard to the legal system of the United States of America, the provisions of Annex 7 will not apply as between the United States of America and Italy.

II.—New Articles and Modifications to the Articles of the Draft Treaty With Italy Adopted by a Simple Majority

Article 64

Part B, Paragraph 3:

Addition submitted by the Australian Delegation.

1. An Italian Reparation Commission shall be set up to co-ordinate and supervise the execution of the provisions of Part B of this Article.

2. a. The Italian Reparation Commission shall consist of one representative of each country entitled to reparations by virtue of part B of the present Article, and of one representative of the United States of America, France, the United Kingdom and the U. S. S. R. respectively.

The Commission shall determine its own rules of procedure and decide upon its own organisation.

c. The administrative expenses of the Commssion shall be met by the Italian Government.

d. The members and staff of the Commission shall enjoy such diplomatic privileges as may be necessary for the performance of their duties.

3. a. The Commission shall co-ordinate and supervise the execution of the provisions of Part B of the present Article with regard to reparations levied from current production and industrial equipment.

b. Each of the Governments entitled to reparations under Part B, before concluding the agreement with the Italian Government provided for in Part B, shall submit the proposed agreement to the Commission for approval. The Commission shall examine all such agreements in the light of the present Article, bearing in mind, more particularly, the need to avoid disputes and duplicate allocations in apportioning Italian production and resources to the various countries entitled to reparations wider Part B.

c. Each of the Governments entitled to reparations shall submit to the Commission periodical reports on deliveries effected in accordance with the [agreements] approved by the Commission.

d. At the request and on behalf of any of the Governments entitled to reparations, the Commission may enter into negotiations with the Italian Government, or assume the executive role which may be entrusted to it by the Government concerned, in order to implement the provisions of Part B of the present Article or of any agreements concluded thereunder.

e. The Commission shall dram up an annual report to be circulated to each of the Allied and Associated Powers signing the present Treaty.

Article 68

Paragraph 4a and b (new text):

a. The Italian Government will be responsible for the restoration to complete good order of the property returned to United Nations nationals under paragraph 1 of this Article. In cases where property cannot be returned or where as a result of the war a United Nations national has suffered a loss by reason of injury or damage to property, he shall receive from the Italian Government compensation in lire to the extent of 75% of the sum necessary, at the date of payment, to purchase similar property or to make good the loss suffered. In no event shall United Nations nationals receive less favourable treatment with respect to compensation than that accorded Italian nationals.

b. United Nations nationals who have ownership interests, held directly or indirectly, in corporations or associations which are not United Nations nationals within the meaning of paragraph 8a of this Article, but which have suffered a loss by reason of injury or damage to property, shall receive compensation in accordance with subparagraph a above. This compensation shall be based on the total loss or damage suffered by the corporation or association and shall bear the same proportion to such loss or damage as the beneficial interest of such nationals bears to the total capital of the corporation or association.

Article 71

Paragraph 1:

After the words: “The Italian Government shall”, instead of: “during the 18 months”, read “during the 3 years”.

Paragraph 1. Sub-paragraph c, (State monopolies):

This paragraph shall not be deemed to confer on the United Nations, or their nationals, rights to engage in any branch of commerce, industry, shipping or other form of business activity which under Italian law is a monopoly of the Italian State. Nevertheless, the most-favoured-nation principle shall be observed in any such cases in which foreign participation is allowed.

Article 74 [bis]

Adjunction of a new article 74 bis:

Italy renounces all participation in the International Financial Commission in Greece.

Article 77 a

“The provisions of the present treaty shall not confer any rights or benefits on any State named in the Preamble of the present treaty as one of the Allied and Associated Powers or on its nationals unless such State becomes a party to the treaty by deposit of its instrument of ratification”.

III.—Modified Articles and New Proposals Referred to the Council of Foreign Ministers

Article 16

U. S. Proposal part b.

Italy and Yugoslavia undertake to give to the Free Territory of Trieste the guarantees set out in Annex 9.

Annex 3

Text of paragraph 1, subparagraph 1 as modified:

1. The Successor State shall receive without payment, Italian State and parastatal property within territory ceded to it under the present treaty, as well as all relevant archives of an administrative character or historical value concerning the territory in question.

Annex 13

(U. S. proposal)

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 parastatal organizations and all rights and interests of the Italian State or of Italian parastatal 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 parastatal 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 parastatal 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 paragraph 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. Paragraphs 3 and 5 have not been put to the vote. [Footnote in the source text.]
2. Paragraph 2 has become new article 46b. [Footnote in the source text]
3. Except time limit modified by a simple majority. [Footnote in the source text.]
1. Marks of ellipsis in the Conference recommendations occur in the source texts.
2. 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.]