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disposal of submarines, non-operational naval vessels, as well as for prohibition upon the construction of battleships, air-craft carriers, submarines, motor torpedo boats and assault craft and upon replacement construction in excess of the tonnage limit of 67,500 tons. Personnel of the Italian Navy is established at 25,000 officers and men. Naval training is restricted to the above personnel.

Section IV-Limitation of the Army-Articles 61-63 set the limits for the Italian Army at 185,000 and for the Carabinieri at 65,000 and prohibit military training for other persons.

Section V-Limitation of the Air Force-Articles 64-66 limit the Italian Air Force to 200 fighter and 150 transport and other aircraft and to a personnel strength of 25,000 and further prohibit bomber aircraft. Military air training is restricted to the above personnel. Section VI-Disposal of War Material-Article 67 lays down the rules for disposal of surplus war material.

Section VII-Prevention of German and Japanese Rearmament— Articles 68-70 provide for Italian cooperation in prevention of Axis


Section VI11-Prisoners of War-Article 71 requires prompt repatriation of Italian prisoners of war.

Section IX-Mine Clearance-Under Article 72, Italy is invited to join the Mine Clearance Organization and will place its minesweeper forces at the disposal of this body.

Annex Xill contains definitions of terms used in this Part.


Article 73 calls for withdrawal from Italy of all armed forces of the Allied and Associated Powers within 90 days and the return of goods in their possession.


Section I-Reparations-Article 74 sets the figures for Italian reparation at $100,000,000 for the Soviet Union, $5,000,000 for Albania, $25,000,000 for Ethiopia, $105,000,000 for Greece and $125,000,000 to Yugoslavia (total $260,000,000) to be paid over a period of 7 years, which does not, however, start for 2 years except by mutual agreement. Reparation will be made not in cash but from surplus war factory equipment, from Italian assets in Roumania, Bulgaria and Hungary, from capital goods and assets, and from current production. Deliveries are to be scheduled in such a way as to avoid interference with Italy's economic reconstruction and placing a burden on other Allied or Associated Powers. States receiving reparation from current production must provide raw materials required. Specific deliveries are to be determined by mutual agreement, and machinery is established for supervision of reparation. Persons whose property is taken for reparation purposes will be compensated by Italy.

Section II-Restitution by Italy-Article 75 provides for the return in good order of identifiable property removed from territory of any of the United Nations, including monetary gold, and for method of presenting claims.

Section III-Renunciation of Claims by Italy-Articles 76-77 make provision for (a) renunciation by Italy of any claims upon the Allied

and Associated Powers for loss or damage from war operations including Prize Court decrees and exercise of belligerent rights, (b) assumption of responsibility for Allied Military currency, (c) eligibility for restitution of Italian property in Germany, and (d) waiver of all Italian claims against Germany.


Section I-United Nations Property in Italy Article 78 provides for restoration of all legal rights and interests in Italy of the United Nations and their nationals and for restoration of their property in good order. In cases where the property cannot be restored or is damaged, the owner shall receive compensation in Italian lire to the equivalent to 2/3 of the loss. This same responsibility extends to United Nations property in the ceded territories and the Free Territory of Trieste.

Section II-Italian Property in the Territory of the Allied and Associated Powers.-Article 79 authorizes the Allied and Associated Powers to take over property of Italy and its nationals in their territories and to apply the property or its proceeds to settlement of claims against Italy not settled by other clauses. The following are exempted from this provision: (a) consular and diplomatic property, (b) property used for religious or charitable purposes, (c) property of persons permitted to reside in the country, where the property is located, or elsewhere in United Nations territory, (d) property rights arising since resumption of trade or from transactions after the Armistice, (e) literary and artistic property rights, and (f) property in ceded territories not taken as reparation.

Section III-Declaration in Respect of Claims.-By Article 80 the Allied and Associated Powers declare that their claims against Italy have been settled by other clauses of the Treaty.

Section IV-Debts.-Article 81 makes provision for continuance of pre-war obligations.


Article 82 requires that for a period of 18 months Italy shall, on a reciprocal basis, (a) grant most favored nation treatment to United Nations and their nationals, (b) make no arbitrary discrimination against their goods, (c) grant no exclusive or discriminatory rights in respect to commercial aviation and (d) afford equality of opportunity in obtaining international commercial aviation rights and extend the right to fly over Italian territory.


Article 83 establishes provision for Conciliation Commissions to settle disputes in connection with restitution and restoration of United Nations property.


Articles 84 and 85 relate to the scope of application of the economic articles and the legal form of the economic annexes.


Articles 86 and 87 authorize the Ambassadors in Rome of France, the United Kingdom, the United States and the Soviet Union acting in concert to represent all the Allied Powers in matters relating to the interpretation of the Treaty for a period of 18 months, and, with no time limit, to settle disputes concerning interpretation or execution of the Treaty. If this method fails, provision is made for special commissions for this purpose.

Articles 88-90 provide for accession by other powers, restrict the rights and benefits under the Treaty to those Powers which ratify, and lay down the procedure for signature and the coming into force. of the Treaty upon ratification by the Soviet Union, the United Kingdom, the United States and France.

Economic Annexes-not specifically referred to in any Article of the Treaty.

Anner XIV-Economic and Financial Provisions relating to Ceded


These clauses provide for the orderly transfer of Italian property in these areas, an adjustment with respect to the Italian public debt, the continuance and reassignment of insurance obligations and the return of United Nations property and contains provisions for such matters as property rights including right of removal, restitution and the disposition of local government property and records.

Annex XV-Special Provisions relating to Certain Kinds of Property A.-Industrial, Literary and Artistic Property clauses establish Allied rights and interests in this form of property.

B.-Insurance clauses relate to resumption of insurance business. Annex XVI-Contracts, Periods of Prescription and Negotiable Instruments

The special clauses relating to the foregoing do not apply as between the United States and Italy.

Annex XVIII-Prize Courts and Judgments

A.-Prize Courts-This Section provides for a review of all Italian Prize Court decisions in cases involving ownership rights.

B.-Judgments-This section likewise provides for a review of court judgments after the outbreak of the war when a United Nations national involved was unable to make adequate presentation of his




Protocol Between the United States, the Union of Soviet Socialist Republics, the United Kingdom, and France on the Establishment of a Four Power Naval Commission, the Disposal of Excess Units of the Italian Fleet, and the Return by the Soviet Union of Warships on Loan, February 10, 1947


WHEREAS The Treaty of Peace with Italy provides that all the excess units of the Italian Fleet, as listed in Annex XII B of the said Treaty, shall be placed at the disposal of the Governments of the Union of Soviet Socialist Republics, the United Kingdom of Great Britain and Northern Ireland, the United States of America, and of France;

AND WHEREAS it is necessary to make provision for the final disposal among certain Allied and Associated Powers of the said excess units;

The Governments of the Union of Soviet Socialist Republics, the United Kingdom of Great Britain and Northern Ireland, the United States of America, and of France have therefore agreed as follows:

1. The excess units of the Italian Fleet as listed in Annex XII B of the Treaty of Peace with Italy, and as finally verified on 1st January 1947, shall be allocated as set out in the Annex of this Protocol. No modification of the list of ships in Annex XII B will be accepted, irrespective of the date of any damage to or loss of such ships, the Italian Government being held responsible for the security and maintenance of such excess units up to the time at which each transfer is completed.

2. Upon transfer by the Italian Government, the vessels concerned shall respectively vest in full ownership in the States hereby becoming entitled thereto, subject to the following exceptions:

(a) The Governments of the Soviet Union and of France take note: that the Governments of the United Kingdom and of the United States of America have undertaken to meet, at least in part, and out of the tonnage at their disposal, the claims of certain other Powers for Italian naval vessels; furthermore, that in regard to any such Italian naval vessels as the Government of the United States of America may elect to transfer to other Powers, the Government of the United States of America will accept temporary custody only, and, upon transfer of custody by the United States Government to any such Power, full ownership will pass from the Italian Government to that Power.

1 Department of State Treaties and Other International Acts Series 1733.


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