860S.51/9–548: Telegram

The Ambassador in Italy ( Dunn ) to the Secretary of State


3600. Amendments proposed Deptel 2156 August 181 to economic agreement between AMG (FTT) and Italian Government initialed July 31 were approved by Italian Government and initialed at Rome September 4 by Parsons for AMG and Bacci for Italian Government. Term “reasonable” was substituted for “legitimate” Article 1 of Part 2 from agreement but text included in confidential minutes (Deptel 2250 September l)2 initialed simultaneously. Text of latter follows:

“Confidential minutes of discussions held at Rome in connection with drafting of an economic agreement between representatives of Italian Government and of AMG British-US zone Free Territory of Trieste—

AMG and Italian Government, in spirit of tripartite declaration of 20 March 1948 and with intention of coordinating application of EEP in British-US zone of FTT with its application in Italy, affirm that following points of procedure will be observed in interpretation of agreement initialled on 31 July 1948 and subsequently amended on September 4, 1948:

The Allied Military Government’s reforms in revenue practices will follow Italian pattern and will be discussed in general terms with Italian Government as they are formulated.
In accordance with suggestion of Italian Government, Allied Military Government will use Italian legislation as a pattern for liquidation of blocked dollar assets in U.S.
Allied Military Government will submit a monthly report of activities of fund referred to in Article 9 Part II of agreement and will discuss future operations of this fund with Italian Government at monthly meetings of mixed commission to be established under terms of agreement.
The two governments undertake to discuss through medium of mixed commission referred to in Part III of agreement, means of implementing arrangements set forth in Article 11, Part II of agreement to conform with Italian practice”.

Sent Department 3600, repeated Trieste 47.

  1. Same as 418, p. 573.
  2. Not printed.