865.24 FLC/7–2147
The Deputy Central Field Commissioner for Europe, Office of the Foreign Liquidation Commissioner (Taff) to the Italian Minister of the Treasury (Del Vecchio)
Dear Mr. Minister: The Government of the United States is particularly anxious at this time to aid in every possible way in the recovery efforts of the Italian Government and therefore proposes to transfer to the Italian Government, upon the terms and conditions specified herein, possession of and title to the following listed types of property which have heretofore or will hereafter be declared to the Office of the Foreign Liquidation Commissioner, Central Field Commissioner for Europe, United States Department of State, as surplus to the needs of the Government of the United States. The estimated original cost of the property to be transferred under this Agreement is approximately $184,000,000.
- A.
- United States Army equipment located in Italy. In the event the United States is unable to supply from surpluses located in Italy all of the items which have formed the subject of conversations between our two governments, the United States will endeavor to make suitable substitutions or replacements from surpluses located in other Theaters. The United States Government undertakes to supply such detailed data regarding such equipment as may be desired by the Italian Government.
- B.
- Sixteen (16) United States Government motor minesweepers, type YMS.
- C.
- Fifty (50) aircraft to be designated by the United States Army, together with maintenance equipment and spare parts for said aircraft for three (3) years, which property is presently located in the United States Occupied Zone of Germany.
- D.
- All United States Government property of Lend-Lease origin located in Italy which has heretofore or will hereafter be transferred directly to the Italian Government by the British Government and for which no settlement has been made. The terms of this paragraph “D” are not to be interpreted to apply to property of Lend-Lease origin now in the possession of foreign governments which may be returned in Italy to the United States Government.
- E.
- All interest of the United States in fixed installations located in Italy (which terms include structure or capital assemblies affixed to lands and buildings in a permanent manner).
- F.
- All United States scrap, salvage and waste material located in Italy.
- G.
- All property covered by contracts entered into between the Office of the Foreign Liquidation Commissioner (Central Field Commissioner [Page 940] for Europe) and the Italian Government since 9 September 1946 and for which no settlement has yet been made.
If any property listed above has been sold or is under contract or commitment to any purchaser other than the Italian Government prior to the date of acceptance of this letter, such property shall not be included in the terms of this letter.
For and in consideration of the transfer of surplus property under this Agreement, the original cost of which is estimated to be approximately $184,000,000, the Italian Government agrees to pay in United States dollars to the Treasurer of the United States the sum of $18,000,000 on the following terms:
- 1.
- Beginning on 1 January 1952 and continuing thereafter on the first day of each succeeding year until the balance is liquidated, a sum equal to four percent of the purchase price, together with accrued interest, subject to such pro rata adjustments in annual installments as are provided for below.
- 2.
- Interest shall begin to accrue commencing 1 January 1948 on the total amount due under this Agreement and shall be paid on the first day of each succeeding year (the first payment being due on 1 January 1949), at the annual rate of two and three-eighths percent on the balance unpaid as of the first day of each preceding year.
The United States Government reserves the right to receive from the Italian Government, in lieu of the total dollar obligation specified above, Italian currency up to the equivalent of $8,000,000 to be used for the payment of any and all expenditures in Italy of the United States Government, its agencies or Armed Forces, or for educational purposes. However, such acquisitions of Italian currency under this paragraph will be limited to an amount not to exceed $1,000,000 per year.
The United States Government also wishes to acquire and improve certain real properties in which it has an interest and therefore reserves the right to require the Italian Government in lieu of the total dollar obligations set forth above, to enter into negotiations with the United States Government and to use its best efforts to conclude without undue delay appropriate contracts wherein the Italian Government will furnish to the United States the properties and improvements it desires or which its representatives have selected. Representatives of the United States Government may at their discretion conduct discussions directly with owners of property or with contractors for improvements as to fair terms and prices prior to the acquisition of such property or improvements by the Italian Government for delivery to the United States Government. The United States Government agrees, however, that in no event will its acquisitions of real property and [Page 941] improvements made under the terms of this paragraph exceed the equivalent in value of $10,000,000 over the thirty-year period of this agreement.
When any Italian currencies or real properties or improvements are furnished to the United States Government under this Agreement, the Italian Government will be credited (at the exchange rate set forth below) with the United States dollar equivalent of the fair value received. Such credit will be applied first to past due interest, if any, and then pro rata to all remaining unpaid installments of principal.
The exchange rate shall be that established by the International Monetary Fund, provided that, if no such rate exists, the rate shall be that rate which is applicable to all United States Government expenditures under the terms of the Agreement reached between our two Governments on 25 January 1947.1
If the proposals contained herein are satisfactory to the Italian Government, would you please indicate the agreement of your Government by signing in the space indicated below and returning this letter to my office.
Respectfully yours,
Deputy Central Field Commissioner for Europe
The terms of the foregoing letter are hereby accepted.
Ministro del Tesoro
- Not printed.↩