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CORRESPONDENCE relating to the Adriatic Question (Frontier of Istria, Fiume, Dalmatia, Zara, Islands in the Adriatic, Albania, Valona, Island of Lagosta, &c.), December 1919.-February 1920.*

1. Joint British, French and American Memoranda of the 9th December, 1919.

2. Telegram from Earl Curzon of Kedleston to Sir Eyre Crowe of the 8th December, 1919, recording an interview with Signor Scialoja.

3. Telegram from Sir Eyre Crowe to Earl Curzon of Kedleston of the 9th December, 1919.

4. Italian Memorandum of the 6th January, 1920.

5. Franco-British proposals of the 9th January, 1920.

6. Italian Memorandum of the 10th January, 1920.†

7. Revised proposals made by the British and French Prime Ministers to the Italian Prime Minister, accepted by the latter and handed to the Serb-Croat-Slovene Delegation on the 14th January, 1920.

8. Memorandum of

20th January, 1920.

Serb-Croat-Slovene Government of the

9. Enquiry of the United States Government of the 19th January, 1920.

10. Note of Mr. Lloyd George and M. Millerand of the

23rd January, 1920.

11. Memorandum of Serb-Croat-Slovene

28th January, 1920.

Government of the

12. President Wilson's Note of the 10th February, 1920.

13. Reply of Mr. Lloyd George and M. Millerand of the.

17th February, 1920.

14. President Wilson's Note of the 24th February, 1920.

15. Reply of Mr. Lloyd George and M. Millerand of the 26th February, 1920.

(No. 1.)-Memorandum.

Ar the moment when the Peace Conference is entering what it is hoped may be the last stage of its labours for the conclusion of peace with Germany, Austria and Hungary, the territorial settlement still remains incomplete in respect of regions where the continuance of uncertainty is calculated to affect gravely the vital interests of the countries directly involved, and might easily endanger the peace of Europe and of the world.

Being persuaded that this danger could only grow in intensity if the Peace Conference were to terminate before an agreement had been reached among the Principal Allied and Associated Powers concerning the Adriatic question, the representatives at the Conference of America, Great Britain and France desire to call the attention of their Italian colleague to the urgent necessity of finding a solution. They

* Parliamentary Paper, "Miscellaneous, No. 2 (1920).”
+ See footnote on page 822.

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realise fully the difficulties with which the Italian Government is confronted in dealing with this problem, but it is precisely for this reason that they feel it would be unjust to all the parties concerned, and in the first place to Italy herself, were they any longer to delay putting frankly before the Italian Government a statement of the position such as they see it after many months of examination and reflection. The friends of Italy therefore feel impelled to make a further effort to reach a settlement which would reconcile the fulfilment of her legitimate aims and aspirations with the equitable claims of the neighbouring States as well as with the supreme interests of the peace of the world.

The three representatives accordingly venture to invite the Italian Government to proceed to a fresh survey of the field in the light of the statement which they have now the honour to make.

The British and French representatives have followed with earnest and sympathetic attention the negotiations which have passed between the Italian Government and the President of the United States. If they have hitherto refrained from tendering their direct advice to the Italian Government in the matter, it was because they had hoped the Italian Government would be able to reach an agreement with President Wilson to which the British and French Governments could readily subscribe. It will be remembered that the British and French Governments had already, more particularly by their note communicated to President Wilson on the 10th September, used their best efforts to promote such an agreement which the President's answer to that note gave every reason to hope could be brought about. Though a complete agreement has not so far been arrived at, the points of difference still outstanding have been so much reduced as to justify an expectation that a complete accord will now be reached.

It may be well, with this view, to place on record, in the first place, the chief points on which agreement has been reached. This is all the more desirable as it would appear from recent official Italian statements that some misapprehension may exist in regard to matters which can readily be cleared up, such, for instance, as the exact description of what is generally referred to as President Wilson's line. The points of agreement are, in the main, embodied in the American memorandum communicated to the Italian Delegation in Paris on the 27th October :

1. With regard to Istria, President Wilson had from the first agreed to a frontier running from the Arsa River to the Karawanken Mountains, which widely overstepped the recognised ethnical line between Italy and Jugo-Slavia, and

which would have as a result to incorporate in Italy more than 300,000 Jugo-Slavs. Italy's geographical position, as well as her economic requirements, was held to justify this serious infringement of the ethnic principle, and President Wilson, anxious to give the fullest value to these important considerations, went still further in agreeing to an extension eastward in such a way as to give to Italy the region of Albona, in spite of the considerable additional number of Jugo-Slavs thereby incorporated.

Moreover, to strengthen the strategic security of Italy, President Wilson, in agreement with the Italian Government, has endorsed the creation of a buffer State between the Italian territory in Istria and the Serb-Croat-Slovene Kingdom in which some 200,000 Jugo-Slavs, as against less. than 40,000 Italians, will be placed under the control of the League of Nations. Anxious to remove any conceivable strategic menace that Italy might fear from the Serb-CroatSlovene State, President Wilson has agreed, and the British and French Governments are glad to associate themselves with this agreement, that the so-called Assling region shall be permanently demilitarised. The three representatives would be happy to learn from the Italian Government whether slight modifications of the demilitarised zone between the Arsa River and Cape Promontore are deemed necessary to safeguard the security of the defences on Italian territory.

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2. There is complete agreement concerning the creation, in the interest of Italy, of the buffer State to be known as the Free State of Fiume," and its control by the League of Nations. Ethnic considerations would demand that this State, containing 200,000 Jugo-Slavs, should be afforded an opportunity, by plebiscite, to decide its own fate. deference to Italy's objection that the incorporation of this region in the Serb-Croat-Slovene State by free act of the inhabitants, might create a real menace, it is now agreed that the determination of the whole future of the State shall be left to the League of Nations, which, in conformity with Italian requirements, shall not fail to provide the full measure of autonomy which the city of Fiume enjoyed under AustroHungarian rule.

3. The three representatives are glad to record their appreciation of the wisdom and moderation which have marked the attitude of the Italian Government towards the difficult question of Dalmatia. They feel that the Italian Government have acted on an enlightened view of their higher interests in officially withdrawing territorial claims to an area where to enforce them would have meant permanent discord with the inhabitants of the Serb-Croat Slovene State, and prevented all possibility of friendly

Its

relations with them. In order, however, to safeguard every Italian racial and sentimental interest, it has been agreed that the city of Zara shall enjoy a special régime. geographical position indicates Zara as a part of the JugoSlav State, but, provided the town is left within the JugoSlav Customs Union, it is to be given complete sovereignty under the League of Nations, and freedom to control its own affairs.

4. The same wisdom and moderation as that which has marked the attitude of the Italian Government towards the Dalmatian question have characterised their attitude as regards the islands in the Adriatic. The Italian Government appear to be one with President Wilson in realising the necessary racial, geographic and political connection of the Dalmatian coastal islands with the Jugo-Slav State. On the other hand, the possession of certain outlying islands, though ethnically Jugo-Slav and economically connected with Jugo-Slavia, is considered by the Italian Government necessary to Italy's strategic control of the Adriatic, and the reasonableness of this claim has been accepted, the following islands being accorded to Italy, on a demilitarised status, namely:

(a.) The Pelagosa group.

(b.) Lissa and the small islands west of it.

(c.) Lussin and Unie.

These islands are to pass in full sovereignty to Italy, who on her part is to make an agreement with the Slav population of Lissa, providing for their complete local autonomy.

5. Italy is to receive a mandate for the administration of the independent State of Albania, under the League of Nations. Attached to the present memorandum is an outline of the form which, in the opinion of the three representatives, such a mandate should take. The frontiers of Albania, on the north and east, at present, will be those fixed by the London Conference of 1913. The southern frontier is still a matter for negotiation. In order, however, not to delay a general settlement by such negotiations, the following provisional arrangement could be adopted :

Greece shall occupy the territory west and south of a demarcation line, which shall run as follows (ref. 1,200,000 Austrian staff maps):

:

From Mount Tumba on the northern boundary of Greece north-westward along the crest of the Nemercha ridge to the Vojusa River;

Thence down that river to Tepeleni, Mirica, to point 98: Thence south, passing between the villages of LopsiMartolozit and Zemblan;

Thence through points 1840 and 1225 to a point about two miles south by east of 1225;

Thence westward, passing just north of Poljana;
Thence south-east to point 1669;

Thence west and north-west to point 2025;

Thence south-westward to the coast just south of Aspri Ruga.

The triangle of territory from point 98 on the Vojusa River (between Baba and Sinanaj) north-eastward to Lake Malik, and southward to the Greek frontier and the demarcation line mentioned above, should be the subject of later negotiation between the three Allied representatives on the one hand and Italy and Greece on the other, the three Allied representatives acting for Albania.

6. The city of Valona, together with such hinterland as may be strictly necessary to its defence and economic development, is to be granted to Italy in full sovereignty.

The above six points, in their general aspects, are those on which, after many months' negotiation, the Italian Government have happily reached an agreement with the President of the United States. They appear to afford to Italy full satisfaction of her historic national aspirations, based on the desire to unite the Italian race; they give her the absolute strategic control of the Adriatic; they offer her complete guarantees against whatever aggression she might fear in the future from her Jugo-Slav neighbours-an aggression which the three representatives on their part consider as most improbable if the lines of a just and lasting settlement are reached. They have even carried their concern for Italian security to the point of neutralising the Dalmatian islands and adjacent waters from the northern border of the Ragusa region to Fiume. The three representatives therefore venture very earnestly to urge on the Italian Government in the most friendly spirit that they should reflect on the great advantages which the above settlement, following on that which gave to Italy the frontiers of the Alps, would bring her, and the great moral and material triumph with which its successful conclusion would. now provide the Italian Government.

Anxious, however, to give the most sympathetic consideration to every Italian interest or sentiment, the three representatives have carefully examined in all their bearings certain further demands which the Italian Government have presented under the following four heads:—

(a.) Control by Italy of the diplomatic relations of Zara. (b.) An arrangement by which the city of Fiume, the so-called corpus separatum, should be dissociated from the Free State of Fiume and made completely independent,

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