750G.00/6–254

No. 197
Agreed Record of Positions Reached at the Conclusion of Discussions in London, February 2–May 31, 1954, Between Representatives of the United Kingdom, the United States, and Yugoslavia1
confidential

Beginning on February 2, 1954, a series of discussions took place in London between representatives of the United Kingdom, United States and Yugoslav Governments in order to ascertain whether a basis for the solution of the Trieste problem could be found which would be acceptable to both Yugoslavia and Italy. A common desire for the solution of the problem was manifest during these discussions. The Yugoslav representative made it clear that, should agreement not be reached as a result of the current negotiations, the Yugoslav Government would not consider itself bound by the provisions of this record.

1. Procedure

The United Kingdom and United States representatives undertook to propose to the Italian Government that it enter into a Memorandum of Understanding covering points 2 to 6 below and any points suggested by the Italian Government, or any other participants, upon which agreement is reached. Such a Memorandum would make reference to the present unsatisfactory situation resulting from the impossibility of putting into effect the provisions of the Italian Peace Treaty relating to the Free Territory of Trieste and to the agreement of the United Kingdom, United States, Yugoslavia and Italy, as the countries principally concerned, to bring this situation to an end. It would provide that, as soon as the Memorandum has been initialled and the territorial adjustments described therein have been carried out, the United Kingdom, United States and Yugoslav Governments will terminate the Military Governments in Zones A and B of the Territory and the [Page 435] United Kingdom and United States Governments will withdraw their military forces from the area north of the new boundary and relinquish administration of that area to the Italian Government. The Yugoslav and Italian Governments will forthwith extend their civil administrations over the areas for which they have responsibility.

The Memorandum of Understanding will be notified to the parties to the Italian Peace Treaty and to the Security Council of the United Nations.

2. Territorial Provisions

It was agreed that the United Kingdom and United States representatives will propose to the Italian Government the acceptance of the territorial delimitation described in Annex I.2 The new boundary will be drawn on a map at a scale of 1:50,000 which will be annexed to the Memorandum of Understanding. As soon as the Memorandum of Understanding has been initialled, representatives of Allied Military Government and representatives of Yugoslav Military Government will carry out promptly, and in any event within three weeks, a provisional adjustment of the boundary in accordance with the map. The Memorandum of Understanding will include a provision for the subsequent establishment by the Yugoslav and Italian Governments of a commission to effect a definitive demarcation of the boundary in accordance with the map.

3. Minorities

It was agreed that there should be annexed to the Memorandum of Understanding a statute on a reciprocal basis for the protection of the Minorities in the areas concerned. The United Kingdom and United States representatives undertook to transmit to the Italian Government a set of guiding principles, prepared by the Yugoslav representative and attached hereto as Annex II,3 which should, subject to consideration of any Italian suggestions, serve as the basis for the preparation of such a Statute.

[Page 436]

4. Free Port

It was agreed that the Memorandum of Understanding should contain an undertaking by the Italian Government to maintain the Free Port at Trieste in general accordance with the provisions of Articles 1 through 20 of Annex VIII of the Italian Peace Treaty.

The United Kingdom and United States representatives will propose that the Italian Government agree to invite representatives of Yugoslavia, Austria and possibly other users of the Port of Trieste to a meeting for the purpose of working out the necessary arrangements to apply these articles under present conditions in order to ensure the fullest possible use of the Free Port in accordance with the needs of international trade. It was agreed that the Italian Government could give its undertaking to call such a meeting in a confidential exchange of letters with the Yugoslav Government simultaneously with the initialing of the Memorandum of Understanding.

5. Autonomy

It was agreed that the United Kingdom and United States representatives should endeavor to obtain inclusion in the Memorandum of Understanding of a declaration by the Italian Government that the area coming under Italian administration should have an appropriate measure of local autonomy.

6. Non-Prosecution Clause

The United Kingdom and United States representatives will propose the inclusion in the Memorandum of Understanding of a statement along the following lines:

“The Governments of Yugoslavia and Italy agree that they will not undertake any legal or administrative action to prosecute or discriminate against any resident of the areas, coming under their civil administrations in accordance with the Memorandum of Understanding, for past political activities in connexion with the solution of the problem of the Free Territory of Trieste.”

7. Consular Representation in Trieste

The United Kingdom and United States representatives will propose that the Italian Government undertake to accord consular status to the representatives of the countries now represented in Trieste by political or commercial representatives.

8. Slovene Credit and Cultural Institutions

The United Kingdom and United States representatives undertook to seek Italian acquiescence in the granting by Allied Military Government in Zone A of permission for the opening of a Slovene [Page 437] credit institution in Trieste. Allied Military Government may take such action before the Memorandum of Understanding is initialled.

The United Kingdom and United States representatives also undertook to explore with the Italian Government the possibility of making arrangements to provide suitable buildings for the cultural activities of the Slovene minority in the area of Trieste as a partial replacement for those formerly used for this purpose.

9. Questions of Claims

The Yugoslav representative stated that his Government did not wish to raise the question of option, claims and counter-claims arising out of the execution of the provisions of the Memorandum of Understanding. Should, however, the Italian Government press for a provision on this point, the Yugoslav view is that the inhabitants of the Free Territory should be given one year in which to decide whether they wish to change residence and one additional year in which to dispose of property. The sums realised from such property liquidation would be deposited in special accounts with the national banks of the two countries and any balance between these two accounts would be liquidated by the two Governments within a specified period of time.

10. Settlement of Financial Problems

The United Kingdom and United States representatives undertook to make strong efforts to bring about, concurrently with the general agreement on Trieste, a lump-sum settlement, or at least a partial settlement, of the principal financial problems now outstanding between Italy and Yugoslavia.

The Yugoslav representative maintained that a settlement or partial settlement of these problems should be arrived at concurrently with the general settlement of the Trieste problem. The United Kingdom and United States representatives, while agreeing to make every effort to obtain a settlement, maintained their position that the resolution of the Trieste question should not be made absolutely contingent thereon. The Yugoslav representative also considered that such settlement should dispose of the claims arising from the Reparation provisions of the Italian Peace Treaty and the Italo-Yugoslav agreements signed in Belgrade on May 23, 1949 and in Rome on December 23, 1950. He did not consider that claims arising out of the Memorandum of Understanding should be included in such a settlement.

11. Statement of Non-Support of Territorial Claims

After the Memorandum of Understanding has been initialled, the United Kingdom and United States Governments will issue a Declaration that they will give no support to the claims of either [Page 438] Yugoslavia or Italy respecting territory under the sovereignty or administration of the other. The United Kingdom and United States Governments will invite the French Government to make a similar declaration.

  • Llewellyn E. Thompson
  • Geoffrey W. Harrison
  • Vladimir L. Velebit
  1. In telegram 5430 from London, May 31, Thompson informed the Department of State that the three representatives would initial the agreement at 4 p.m. that day, having agreed to a few minor amendments which he described. (750G.00/5–3154) In telegram 5436 later that day, Thompson reported that the agreement had been initialed and that he and Harrison would inform the French Embassy in general terms the next day. He also said the talks with Brosio would start the afternoon of June 1. (750G.00/5–3154)

    The original and one copy of the agreed record of positions were sent to the Department of State as attachments to despatch 3920 from London, June 2. According to this despatch, the Embassy in London also sent copies to Rome, Belgrade, and USPolAd Trieste. (750G.00/6–254)

  2. Not printed. Annex I contained a very detailed description of the new demarcation line.
  3. Not printed. The list of guiding principles for the minority statute included the following: (1) Human rights and fundamental freedoms without discrimination, (2) Political and civic rights without discrimination, (3) Prohibition from fostering national and racial hatred, (4) Equal accessibility to all posts and functions in State and public services, (5) Recognition of the equality of languages in official use, (6) Right to an unhindered cultural development and preservation of the ethnical character, (7) Unhindered economic development, and (8) New political and territorial subdivisions not to be created without due account of the ethnical composition of the area concerned.