Foreign Relations of the United States, 1946, Paris Peace Conference: Proceedings, Volume III

CFM Files

Memorandum of Conversation, by Mr. Jacques J. Reinstein of the United States Delegation

secret

September 24, 1946.

Participants:	M. Tarchiani, Italian Ambassador in Washington
	Mr. Reinstein

Subject: Italo-Egyptian Agreement for Settlement of War Damage Claims

M. Tarchiani called on me today to furnish me with information I had requested several days ago regarding the recent Italo-Egyptian Agreement for the settlement of claims relating to war damage. He showed me the text of an agreement signed by M. Bonomi and Wacyf Ghali Pasha in Paris on September 10, 1946. He allowed me to read the Agreement but would not give me a copy. A summary of the Agreement is attached.³⁷

M. Tarchiani said that the Italian Government had two motives in signing the Agreement. The first was to obtain the release from sequestration of Italian assets in Egypt which he said amounted to 150 million Egyptian pounds. The other was the hope that the arrangement might help to modify the Egyptian attitude concerning the Italian colonies. He implied that the colonial authorities in Italy had been largely instrumental in putting through this secret Agreement.

M. Tarchiani expressed the hope that the Italo-Egyptian Agreement would not come under discussion in the Conference. I told him that it had already been raised and that it seemed to me quite possible that the Italian Government would be called upon to furnish information concerning the Agreement. M. Tarchiani recognized that the signatures of the Agreement might have adverse repercussions on the entire Italian position with regard to reparations. He said that he had personally protested against the arrangement but that M. Bonomi had arrived from Rome with instructions to sign it and had, in fact, signed it three hours after his arrival in Paris. The text of the Agreement has been closely safeguarded and he hoped that it would not be necessary for it to be disclosed.

I asked M. Tarchiani what plans had been made for ratifying the Agreement. He said that he did not know, since the entire matter had been dealt with in Rome.

[Annex]

Summary of the Italo-Egyptian Agreement

Summary of an Agreement Signed at Paris on September 10, 1946, by Sr. Ivanoe Bonomi and Wacyf Ghali Pasha on Behalf of the Egyptian Government

1. The Italian Government undertakes to pay to the Egyptian Government the sum of 4,500,000 Egyptian Pounds in compensation for damage suffered as a result of Italian military operations in Egypt.

2. The Italian Government recognizes and assumes responsibility for the repayment of the sum of E.£2,170,000 plus, which was levied on Italian assets in Egypt and used for the assistance of needy Italians, as well as for the maintenance and support of Italian schools and churches. The exact composition of this sum is set forth in an Annex to the Agreement. The two principal items are E.£1,600,000 disbursed through the Swiss Legation in Egypt, and E.£360,000 disbursed for relief of victims of air-raids.

3. The Egyptian Government will lift its measures of sequestration against Italian property in Egypt on coming into force of the Agreement. However, the Egyptian Government will retain under sequestration Italian assets to the value of the sum mentioned in paragraph 1, which will be released as the sum referred to is paid.

4. The Italian Government renounces on its own behalf and on behalf of its nationals all claims against Egypt for exceptional war measures taken against Italian property.

5. The Italian Government undertakes to compensate Egypt and Egyptian nationals for damages suffered in Italy.

6. The Agreement is to be ratified and will enter into force on exchange of ratifications, which is to be effected at Cairo as soon as possible.

37. The agreement was approved by Italian law No. 512, May 16, 1947; for text, see Gazzetta Ufficiale della Repúbblica Italiana, No. 144 (June 27, 1947), pp. 1930–1933.