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

C.P.(Gen)Doc.1.U.25.

Annex 3a.

undated

(See Article 69)

Provisions Concerning the Cession of the Territory of the Free City of Trieste

1. The Free City of Trieste will receive free of payment, Italian State or para-statal property situated on Territory ceded under the terms of the present Treaty to the Free City of Trieste.

Within three months of the date of entry into force of the present Treaty, the Italian Government will hand over to the Government of the Free City of Trieste all archives, documents, general and detailed plans concerning all branches of administration, public services, transport, electrification, land improvement, water supply and public works, as well as plans and documents relating to concerns on the ceded territory. Within the same time-limit the Government of the Free City of Trieste will hand over to Yugoslavia or to Italy the documentary materials mentioned above which are on its Territory and which concern territories belonging to Yugoslavia or to Italy under the terms of the present Treaty.

As an exception to the first paragraph above, half of the property of Italian concerns, the output or operation of which is essential to Yugoslavia will revert to Yugoslavia as Italian reparation. Yugoslavia will enjoy priority rights in these concerns for orders, works and repairs so far as the requirements of the Free City of Trieste are not prejudiced.

The subsequent control of these concerns shall be determined by agreement between the Yugoslav Government and the Free City of Trieste. Where private interests are involved, the Free City of Trieste shall award compensation to juridical persons and to natural persons for the part accruing to it, and Italy similarly for the part ceded to Yugoslavia as reparation.

The Italian property referred to in the first paragraph will be deemed to comprise all property, rights and interests of the Italian State, of local government authorities and public corporations, public institutions, associations and societies which are publicly owned, property and interests which belonged to the Fascist party, or its subordinate organisations or to persons declared to be war criminals or those whose property was to be confiscated under the Italian law for the confiscation of property acquired through Fascist influence.

Unless otherwise provided for in the present Treaty, property belonging to public bodies in the territory to be divided between the Free City of Trieste and Yugoslavia or Italy will be divided between these countries in proportion to the population. Property exclusively serving the local needs of certain parts of the territory of one of these countries will not be divided but be used, free of compensation, for the needs of the population of the region concerned. Institutions owned by these public bodies entirely located on the Territory of one of the countries will also not be divided but will belong to the country to which such territory reverts.

Centralized funds, foundations and centralized institutions will withdraw from their funds left in Italy and pay over to the Free City of Trieste an amount corresponding to the contributions received from the ceded territories. Similarly, the Free City of Trieste will hand over to Yugoslavia the assets of institutions having their head office in Trieste, if they also served the territories ceded by the present Treaty to Yugoslavia.

2. The Free City of Trieste will exchange for her own currency Italian and Allied military occupation currency held in its territory by persons who continue to reside in this Territory or by juridical persons who continue to carry on operations in this Territory. The Free City of Trieste may require holders of such funds to furnish evidence of the origin of the sums offered for exchange.

When exchanging Italian and occupation lire into Trieste currency the Free City of Trieste shall take into account the dinar-lira rate prevailing at the time of exchange.

After the exchange has been made the Italian Bank of Issue shall pay into the issuing institution of the Free City of Trieste in proportion to the Italian lire and Allied military currency exchanged, a proportion of its reserves, bill holdings and other assets proportional to the currency exchanged. In transferring these assets, priority will be given to those of juridical or natural persons residing on the territory of the Free City of Trieste.

3. The Free City of Trieste will not participate in the payment of the Italian national debt of a date prior to 1st December, 1938 nor in the payment of the Italian national debt of a date later than 1st May, 1945.

The Free City of Trieste will be responsible for other Italian public debts to the amount represented by the ratio between the population of its territory and the total population of Italy at the time of the last official Italian pre-war census. To pay this debt the Free City of Trieste will convert Italian bonds into its own bonds up to the amount of the sum in question. Trieste nationals and juridical persons belonging to the Free City of Trieste will have prior rights to participate in this conversion in respect of bonds which they can prove were equitably and properly acquired.

4. Within a year from the entry into force of the present Treaty, Italy will hand over to the Free City of Trieste, along with the relevant deeds and documents, and computed at the de jure or de facto assessment adopted in Italy, the reserve capital and all actuarial reserves and capitalisation premiums corresponding to the liabilities assumed by the Free City of Trieste in respect of persons entitled in its territory to social insurance benefit for disablement, work, old age, accidents or death. Within a year from the entry into force of the present Treaty Italy will hand over to the Free City of Trieste the proportion of the assets of Italian sick insurance funds due to the territory of the Free City of Trieste on the basis of the ratio between the number of insured persons in its territory and the total number of insured persons in Italy in 1938.

Within one year Italy will hand over to the Free City of Trieste together with the revalued deeds and documents (the reserve funds intended for paying the retirement pensions of civil servants and their families living in Free City of Trieste Territory who become Trieste nationals and who have acquired the right to a personal or family pension, whether this pension has or has not already been awarded. At the same time the Italian Government will transfer the sums paid into pension funds by civil servants in the territory of the Free City of Trieste but who have not yet acquired the right to a pension.

When Italy has fulfilled this obligation, the Free City of Trieste will undertake to pay Italian State pensions to such persons as have become nationals of Trieste under the present Treaty. As regards other persons, wherever they have held office, whatever their residence or, wherever their pension has so far been paid, the responsibility shall rest with Italy. Similarly, the Free City of Trieste will assume no responsibility for the payment of pensions to civil servants who have come from areas which up to 1915 formed part of Italy and who are not incorporated in the services of the Free City of Trieste, but who are placed at the disposal of the Italian Government by the Government of the Free City within one year from the coming into force of the present Treaty.

5. Public and private insurance organisations in the territory of the Free City of Trieste will liquidate their portfolios of business for the insurance of persons and property as regards the territories of the Allied or Associated Powers or territories to be ceded to the Successor States under the present Treaty as stated in Annex 4, item 3, and will hand over all securities forming part of the actuarial reserves, capitalisation premiums and marginal reserves.

6. The property, rights and interests of Italian nationals permanently resident in the territory of the Free City of Trieste at the date of the coming into force of the present Treaty will, provided they have been lawfully acquired, be respected in the same manner and to the same extent as the rights of nationals of the City of Trieste.

7. Persons opting for Italian nationality, who have established their residence in Italy, shall enjoy the same treatment as that laid down in Annex 3, 6 for Italian optants in the ceded territories.

8. As regards the property, rights and interests of the United Nations in its territory, and the restitution of property removed, the Free City of Trieste will take the same action as is laid down for Italy by the present Treaty of Peace in regard to such property, rights and interests.

9. All railways and other railway equipment including accessory material in the territory of the Free City of Trieste will be transferred to the Free City of Trieste in the manner laid down for ceded territories.

10. Italy shall transfer to the Free City of Trieste all units of the Italian merchant marine which at the beginning of the war, were registered in the port of the Free City of Trieste.

11. All Italian public institutions and all the public services in the territory of the Free City of Trieste will be transferred to the jurisdiction of the Government of the Free City; all institutions established in the Free Territory as branches or agencies of Italian public organisations, will become independent and come under the jurisdiction of the authorities of Trieste. Insofar as the assets of such services are centralised, they will be divided up, and a proportionate part of these assets shall be transferred to the Free City of Trieste.

12. The Free City of Trieste will not enter into any engagement with regard to Italian reparation payments, except as provided in paragraph 1 of this Annex.

The Free City of Trieste will transfer to Yugoslavia for disposal all German property, rights and interests in the territory of the Free City of Trieste. This German property will be liquidated by Yugoslavia according to the provisions of the Paris Final Act on Reparation and be placed to Yugoslavia’s Reparation account with Inter-Allied Reparations Agency.

13. International agreements concluded by Italy will not be binding on the Free City of Trieste.

14. The renunciation of claims as provided for in Section III, paragraph 6 of the present Treaty will also apply to the Free City of Trieste.

15. The provisions of the present Peace Treaty (art. 69) with regard to Italian property in the territories of the Allied or Associated Powers, and the provisions of Article 67 with regard to Italian property in Germany will also apply to the property of nationals of the Free City of Trieste, unless expressly stipulated otherwise.

16. Annexes 6, 7 and 8 of the present Treaty will also apply to the Free City of Trieste, unless otherwise stipulated in special provisions.

17. Yugoslavia and Italy will maintain the existing supply of electricity to the Free City of Trieste furnishing such quantities of electricity as it may require. The quantities furnished need not at first substantially exceed those which have been customarily supplied to the Free Territory but Yugoslavia and Italy will, on the Free City’s request, as far as possible, furnish the amounts corresponding to its requirements. The price to be charged by Yugoslavia or Italy and to be paid by the Free City for electricity should not exceed that charged for a similar amount in Yugoslav or Italian territory. Yugoslavia, Italy and the Free City of Trieste will maintain in good condition all electric plants, transmission lines, sub-stations and other installations required for the supply of electricity to the Free City of Trieste. Yugoslavia will be entitled to use all power installations which, in the territory of the Free City, serve for the transmission of electric power in the territory ceded to Yugoslavia. This obligation will bind Italy and Yugoslavia during a period of five years from the date of the entry into force of the present Treaty. During the said period the Governments concerned should conclude further agreements in order to regulate their future relations. A joint technical commission (Yugoslavia-Trieste or Italy-Trieste) will be established, with headquarters in Trieste and equal representation for the parties concerned, to supervise the execution of these provisions. In the event of dispute, a court will be elected by mutual agreement.

Yugoslavia undertakes to supply Trieste with water according to the same principles.

18. Under the present Treaty, half the length of the submarine cables between the territory of the Free City of Trieste and other territories will become the property of the Free City of Trieste without the latter being obliged to pay an indemnity; the other half will be the property of the State in which its extremity lies. As regards indemnities, the Free City of Trieste shall subscribe to the obligations which are to be borne by Italy under Article 66, paragraph 6, of the present Treaty.

19. The whole of the provisions of Article 70 (Debts) will apply to the Free City as to Italy.

20. The provisions of Articles 11a, 11b, 11c, 11d, 14, 14c, 38, 62a, 62b, 62c, 62d, 72 and 76 of the present Treaty are also binding on the Free City of Trieste and will be applied to that territory; Italy will apply these provisions to Trieste and to citizens of Trieste who have up to now been nationals of Italy.

21. The provisions of Annex 3 will apply to the Territory of the Free City of Trieste either directly or in a similar manner unless otherwise provided for in this Annex.