Article 64

This Article to be redrafted to read:

“Italy recognizes the claims of U.S.S.R. and other Allied and Associated Powers (names of countries to be inserted) for reparation for losses caused by the action of Italian Forces during the war. Taking into consideration, however, that Italy not only withdrew from the war against the United Nations but declared, and in fact waged, war against Germany, it is agreed that compensation for the losses referred to shall be paid not in full but only in part;
“The total amount to be paid by Italy in reparation shall be determined within a period of six months from the date of coming into force of the present Treaty, by the Reparation and Restitution Commission established under Article …3 (See proposed new article 64A). In making this determination the Commission shall have regard to the reasonable capacity to pay of the Italian economy and shall not impose such a burden upon Italy as to endanger her economic stability or check unduly the post-war recovery of her industry and trade;
“Reparations shall be provided in the following manner:
Italian assets in Roumania, Bulgaria and Hungary, subject to the exceptions specified in paragraph 5 of Article 69, shall be transferred to the U.S.S.R. at a value fixed by the Reparations and Restitution Commission and shall be accepted by the U.S.S.R. as satisfaction of its claim to the extent of that value;
“The balance of the total amount determined by the Commission shall be provided by a series of payments in dollars, sterling or other currencies approved by the Commission, calculated as a percentage of the value of Italy’s exports each year. The Commission may adjust the sums payable each year according to the economic position of Italy, and the payments shall be spread over a period of not less than five, but not more than ten years from the date of coming into force of the present treaty.
“The sums provided under the provisions of paragraph 3 b. of this Article, after deduction of the administratitve expenses of the Commission, shall be distributed among the States which, in the judgment of the Commission, are entitled to reparations in accordance [Page 669] with shares to be determined by the Commission, taking into consideration:
The losses the claimant States have suffered through the action of Italian Forces in the war;
The value of the Italian assets to be transferred to the U.S.S.R. in accordance with the provisions of paragraph 3 a. of this Article; and
The value as determined by the Commission of any other property transferred to claimant States since the Armistice between Italy and the Allied and Associated Powers.”

(Similar redraft to be made of corresponding Article in Treaties with Bulgaria and Hungary except that paragraphs 3 a. and 4 b. will not apply.)

  1. Marks of ellipsis throughout the proposed amendments occur in the source texts.