Foreign Relations of the United States, 1946, Council of Foreign Ministers, Volume II

C.F.M. Files: Lot M–88: Box 2080: CFM Minutes

United States Delegation Minutes, Council of Foreign Ministers, Third Session, Twenty-First Meeting, Waldorf-Astoria Hotel, New York, December 11, 1946, 11:30 a.m.⁹⁹

New York, December 11, 1946, 11:30 a.m.

secret
USDEL(CFM) (46) (NY)21st Meeting

Report of Deputies

Mr. Jebb: The Deputies considered the Fifth, Sixth and Seventh Economic Reports.¹ They approved Article 72 of the Italian Treaty (Settlement of Disputes) in the form recommended by the Economic Experts, and after deleting the bracketed phrase in paragraph (c), they agreed that the other treaties should include a corresponding article, with the words “Secretary General of the United Nations” replacing the words “President of the International Court of Justice” as contained in the Paris recommendations.² With respect to the Sixth Report,³ they decided that it would be easier to reach agreement on the phrase reading “and to land for non-commercial purposes” after the CFM had agreed on Article 32 of the Permanent Statute.

With respect to the Seventh Report,⁴ the Deputies agreed to recommend to the CFM the sending to Trieste of a commission of inquiry to examine the financial situation and to make recommendations on the financial help which might be needed in the interim period. The U.S. and U.K. Delegations thought that the commission should proceed not later than February 1. The U.S.S.R. Delegation thought that it should report at the next meeting of the CFM. The U.K. believed that the staff of the Commission should be named by the United Nations. The Soviet Delegation believed that it should be named by the CFM. The U.S. Delegation recommended that the commission which proceeds immediately should be appointed by the CFM, but that another commission, which should study long-term questions such as monetary and customs matters, should be appointed by the UN. This question of long-term investigation is dealt with in the Ninth Report of the Economic Experts.

The Deputies agreed that the frontiers of the Free Territory should be those contained in a large-scale map submitted by the French Delegation.⁵

The Deputies agreed to recommend to the Ministers:

1) that a decision should be taken as to the date and place of the signing of the treaties. They suggest that as the Moscow meeting might be a little late, the treaties be signed at Paris on February 10.

2) that the Ministers might name their representatives for the colonial inquiry commission before the treaty is signed.

3) that the Ministers might instruct the Drafting Committee to start its work on the final texts of the treaties.

The Deputies prepared a list of outstanding questions. All are included in the Ninth Report of the Economic Experts with the exception of a clause to the effect that there should be an article in the Statute stating that the Free Territory should give full recognition to all the pertinent articles in the Italian Peace Treaty.

Fifth Report of Economic Experts (Article 72—Settlement of Disputes)

The CFM approved Article 72 as contained in this report. They agreed to ask the Deputies to examine this article in order to bring it into line with the corresponding articles of the other treaties.

Sixth Report of Economic Experts (Civil Aviation)

The Deputies agreed to postpone consideration of this report until a decision has been reached on the corresponding Article in the Statute for the Free Territory.

Seventh Report of Economic Experts (Financial Assistance Required by the Free Territory)

M. Couve de Murville: There are no proposals in this report. It merely contains an exposition of the views of the Delegations.

Mr. Bevin: I thought the Deputies had agreed that they should recommend to the CFM that a commission of inquiry be named to go to Trieste as soon as possible. No agreement was reached on when they should report, that is, on February 1, or March 10. The Deputies also were unable to agree on who should appoint the commission.

M. Couve de Murville: Perhaps we should discuss in the first instance a short-term basis. The four Delegations are agreed that such a commission should be sent. There is a question as to whether it should report to the CFM or the UN.

M. Molotov: The Commission should be appointed by the CFM since no one else thus far has been dealing with the Trieste question.

M. Couve de Murville: We have no preference. If the commission is appointed by the CFM we ought to provide for the participation of Italians and Yugoslavs.

M. Molotov: The commission might call in such representatives for consultation.

Mr. Byrnes: I thought we were going to send a commission of financial experts and accountants to report to us. I don’t see the need of Italian or Yugoslav representatives. I agree that the commission be appointed by the CFM.

Mr. Bevin: Can we agree that the CFM appoint a commission which will consult with competent persons in the Free Territory and also with Italians and Yugoslavs?

The CFM agreed on this course.

Mr. Bevin: I suggest that if the commission reports to the CFM, such a report be submitted a fortnight before our next meeting.

M. Couve de Murville: We might ask for such a report by February 20. This applies to immediate financial needs. There is also the question of long-term considerations, on which Mr. Gusev will report later on.

Mr. Bevin: I take it that the terms of reference of the Commission will include what Mr. Jebb read out, that is, that the commission will be requested to investigate financial conditions in the Free Territory, and to make recommendations on what, if any, financial assistance will be required during the interim period.

M. Molotov: There should be only one directive—to study the financial situation. It would be premature to do more at this time.

M. Couve de Murville: Could we not say that the commission should study the financial conditions and make recommendations thereon?

Mr. Bevin: I am willing to have the Trieste commission study this matter, but I desire to separate this commission from the long-term commission.

M. Molotov: Our task is to study financial conditions in the initial period. The Council of Government should study the long-term considerations.

Mr. Bevin: I agree that we limit our investigation to the interim period. Could not the Trieste Commission study terms of reference?

The Ministers indicated their approval of this suggestion.

Mr. Byrnes: I would like to suggest that the different Delegations transmit the names of the Financial Experts to the Secretary General tomorrow.

The Ministers agreed that the names would be furnished as soon as possible, and in any event before they left New York.

Signature of the Treaties

M. Molotov: The Deputies made no proposal on this matter. They only discussed it. I am wondering how the signature in Paris would affect us. Are we expected to go to Paris for this purpose?

M. Couve de Murville: There should be a ceremony at which the ex-enemies would be present. We cannot send the treaties to Rome, Bucharest, et cetera, for signature, and we cannot ask the Foreign Ministers to make a trip to Paris for this purpose.

Mr. Bevin: Could not representatives be appointed to sign in our behalf?

M. Couve de Murville: That could be done. At the same time, the Foreign Ministers could sign at a later date.

M. Molotov: That is a good idea.

Mr. Bevin: Could we have the treaties signed in February?

M. Couve de Murville: The earlier the better.

M. Molotov: Let us agree on February 10.

Frontiers of the Free Territory

The Ministers agreed to the Deputies’ recommendation on this subject.

Commission of Inquiry for the Italian Colonies

Mr. Bevin: We should give consideration to this matter. I believe that if we nominated our representatives by the time the treaty enters into force, it would be appropriate. I don’t know who to nominate today. It would be sufficient if the names were submitted before the Italian Treaty is signed.

M. Molotov: When will the Commission start its work?

Mr. Bevin: If we nominate our representatives before the time the treaty is signed, they could start their work when the treaty comes into force—that is, after ratification.

M. Molotov: We might set a date for the appointment of our representatives and agree that they will start their work when the treaty comes into force.

M. Couve de Murville: We might agree on February 10.

Mr. Bevin: And they would begin their work when the treaty comes into force.

The Ministers indicated their approval of this course of action.

Preparation of the Treaties

The Ministers agreed that the Drafting Commission begin work on this task immediately.

Report of Deputies

M. Gusev: We examined the Eighth Report of the Economic Experts and agreed on paragraphs 1, 2, and 3.⁶ An additional paragraph, supported by the U.S., U.K., and French Delegations, was not agreed upon.⁷ The Soviet Delegation considered that this paragraph should not be included in the Bulgarian Treaty unless it were also contained in the Italian Treaty. The U.S., U.K., and French Delegations believed that this paragraph should be included in the Bulgarian Treaty but not in the Italian Treaty.

The Deputies also examined the Ninth Report of the Economic Experts.⁸ They agreed to paragraphs 1, 2, and 4.⁹

With respect to paragraph 3, the U.S., U.K. and French Delegations believed it necessary to include it as sub-paragraphs (h) and (i) to section 5 of Article 69 of the Italian Treaty.¹⁰ The Soviet Delegation did not feel that it should be included.

The Deputies also recommended that the CFM direct its attention to section 7 of the Ninth Report, which deals with the financial situation in Trieste.¹¹

The Ministers approved paragraphs 1, 2, and 4 of the Ninth Economic Report.

Eighth Report of the Economic Experts (Bulgarian Reparations)

The Soviet Delegation withdraws its amendment save for the last paragraph. It suggests that this paragraph read:

“The cost of transport to the Greek or Yugoslav frontier shall be chargeable to the Bulgarian Government.”

The Ministers agreed to this amendment.¹²

Italian Rolling Stock and Italian Merchant Vessels

M. Molotov: I would like to discuss this matter at our next meeting in order to have time to study it.

Financial and Economic Clauses of the Instrument for the Provisional Regime

M. Couve de Murville: In regard to the long-term problems, such as currency, customs, et cetera, we must first decide on procedure—that is, whether these matters are to be considered by the CFM or by the UN.

M. Molotov: Perhaps we might instruct the same commission to discuss these questions.

Mr. Byrnes: I have no objection. But I think that the UN will desire to have a commission of its own as it is supplying the funds. Could the UN have a representative on the Commission?

Mr. Bevin: The difficulty is that when the treaty is signed the CFM will have no further jurisdiction in Trieste. The United Nations and the Security Council take over charge.

M. Molotov: We are ill informed as to financial conditions in Trieste and for this reason we cannot make any decisions now. Perhaps the U.S. and U.K. have information, but the Soviet Delegation is completely in the dark. I do not know whether the UN has available funds or whether it desires to render assistance to Trieste. It is my understanding that it has a limited budget. In any event, we cannot prejudge this question now. It is true that our jurisdiction will end when the treaty comes into force, but at that time the Council of Government will step in and it will be up to the Council to clarify the situation. Generally speaking, no special relationship is provided for between the Free Territory and the United Nations. There is a relationship between the Free Territory and the Security Council. But at the present time we do not have adequate data to enable us to dispose of this question. The only thing we can do is to charge the commission to study it. We are not prepared to take decisions.

Mr. Bevin: The great difficulty is we have agreed that the Allied Military Government will cease after the Governor takes office. This means there will be no more contributions from the U.S. or U.K. No provisions are made to provide the necessary funds for the intervening period and up to the time the United Nations decides what to do. Who will accept this responsibility? Under British law we can only provide funds when our troops are in occupation. There is also the question of customs and currency. We must include something in the Statute along the lines of Articles 12 and 13 to cover the gap, and we must make provisions for placing this matter before the United Nations. There is no one anywhere to foot the bill at the present time.

M. Molotov: My only observation is that we are not prepared to consider this question. I have proposed that we refer it to the commission for study.

Mr. Byrnes: A decision will have to be made on this matter and on Article 12 which has not been discussed by the Deputies. I suggest that we ask the Deputies to discuss this question since I wish to discuss it here. Someone will have to provide funds for the Free Territory.

M. Couve de Murville: There appear to be two questions; i.e. the establishment of a commission to study currency, customs, finance, et cetera, and, secondly, the possibility of including certain provisions in the instrument of the Provisional Regime. I suggest that we take up the first question. The Soviet Delegation has proposed that the Commission also be instructed to study these long-term considerations.

Mr. Byrnes: I have no objection.

Mr. Bevin: I also could agree. But I would like to think about the terms of reference of the Commission. I am also worried since we have made no provisions for Articles 12 and 13—in effect we are providing for a vacuum.

Mr. Byrnes: When I said I agreed, I did not mean that I would not insist on Articles 12 and 13 being studied. I feel that we must make some provision for currency matters in the Free Territory.

M. Molotov: From our exchange of views it seems clear to me that we shall have to study Articles 12 and 13 before appointing the Commission.

M. Couve de Murville: I suggest we postpone our discussion until tomorrow. In the meantime the Deputies could draw up the draft instructions for the commission which we have agreed upon.

The Ministers agreed to meet on December 12 at 4:00 p.m.

99. For a list of persons present at this meeting, see the Record of Decisions, infra.
1. Under reference here were portions of the Report of the 131st Meeting of the Deputies, December 10, 10 a.m., which were not taken up at the previous (20th) Meeting of the Council of Foreign Ministers.
2. In its 5th Report, circulated to the Council as document CFM(46) (NY)53, December 5, 1946, not printed, the Committee of Economic Experts stated that it had considered the drafting of article 72 of the draft Peace Treaty with Italy in accordance with the decision of the Council of Foreign Ministers on November 29, 1946. The Report presented the text of the article, which was agreed upon by the Committee with the exception of one bracketed sentence in paragraph c which read as follows: “It shall have the power to determine in suitable cases any amounts to be paid by the losing party as costs and as expenses of proceedings.” With the exception of the disputed sentence, the text recommended by the Committee was subsequently included in the Treaty of Peace with Italy, where it was numbered article 83.
3. The 6th Report of the Committee of Economic Experts, circulated to the Council as document CFM(46) (NY)54(Revised), December 6, 1946, not printed, was a redrafted text of the civil aviation provisions of article 71 of the draft Peace Treaty with Italy.
4. CFM(46) (NY)61, December 7, 1946, p. 1477.
5. The map under reference here was subsequently included in the Treaty of Peace with Italy as Annex I, Map D.
6. Under reference here is the 132nd Meeting of the Deputies, December 11, 1946, 10 a.m. The 8th Report of the Committee of Economic Experts, CFM(46) (NY)66, December 9, 1946, not printed, consisted of a recommended text for article 20 (Reparation) of the draft Peace Treaty with Bulgaria. With the change in the last paragraph agreed upon at this meeting of the Council, the article recommended by the Economic Experts was included in the Treaty of Peace with Bulgaria, where it appeared as article 21.

7. The paragraph under reference read as follows (brackets appear in the source text and indicate unagreed language):

   “[The basis of valuation of goods delivered under this article shall be the 1938 international market prices in United States dollars, with an increase of 15 percent for industrial products and 10 percent for other products. The cost of transport to a Greek or Yugoslav port or to the Greek or Yugoslav frontier shall be chargeable to the Bulgarian Government.]”

8. The 9th Report of the Committee of Economic Experts was circulated to the Council of Foreign Ministers as document CFM(46) (NY)71, December 11, 1946, not printed.
9. The substance of point 1 and the texts included under points 2 and 4 of CFM(46) (NY)71 are set forth under items 2(b), 2(c), and 2(e), respectively, of the Record of Decisions of this Council meeting, infra.

10. Point 3 of CFM(46) (NY)71 set forth additional sub-paragraphs (h) and (i) of paragraph 5 of article 69 of the Draft Peace Treaty with Italy reading as follows (brackets appear in the source text and indicate unagreed language):

    “[(h) Rolling stock which at the date of the coming into force of the present Treaty is in the territory of an Allied or Associated Power as a result of actions taken after May 8, 1945 by UNRRA, by the Allied military authorities or in connection with ordinary commercial relations.

    “(i) Italian merchant vessels, other than those captured or seized by, or otherwise coming under the control of, any Allied or Associated Power prior to September 3, 1943.]”

11. Point 7 of CFM(46) (NY)71 was concerned with the financial and economic clauses of the proposed Instrument for the Provisional Regime of the Free Territory of Trieste. With regard to article 11 of the proposed Instrument, the Committee of Economic Experts agreed that a Commission should be appointed to investigate the economic and financial position of the Free Territory and to make recommendations regarding a financial, currency and customs regime, but the Committee was unable to agree on the method of appointment of such a Commission. Under point 7, the Committee of Economic Experts also referred to the Council of Foreign Ministers the unagreed texts for articles 12 and 13 of the proposed Instrument for the Provisional Regime of the Free Territory of Trieste. These articles dealt with the provisional currency regime and the provisional customs regime for Trieste, respectively.
12. For the text of the agreed additional paragraph to the Bulgarian reparations article, see the Record of Decisions of this meeting, item 2 (a), infra.