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

Doc. No. 14 (P).

Memorandum on Annex 9 as Proposed by the United States Delegation in the Draft Peace Treaty, Concerning the Electricity Supply in the “Compartimento” of Venezia Giulia

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1. The Italian Government has on many occasions put forward the various reasons (political-economic-orographic-hydrographic, of transport, etc.) whereby the Italo-Yugoslav frontier on the Upper and Middle Isonzo, as proposed by the draft Treaty, should be modified.

2. In particular it is to be pointed out that the generating stations of Doblari and Plava on the Isonzo river and the other power stations planned on that section of the river or on its tributaries have been built or planned mainly for the needs of Trieste, its harbour, factories and dense population. They are technically linked to the Italian electric system which can supply Trieste and the rest of Venezia Giulia with the electricity required when the Isonzo river is short of water (midsummer and winter) and, on the other hand, can very advantageously absorb and make use of the surplus of electricity which the power stations of the Isonzo can generate when the river is full of water (spring and autumn).

3. The portion of Venezia Giulia to be ceded to Yugoslavia does not need, in the least, the electricity generated by Doblari and Plava as it could not absorb the surplus energy mentioned in the previous paragraph and, moreover, those two power stations could not possibly supply electricity to that portion of Venezia Giulia, in winter and summer, when the Isonzo is short of water, after having supplied the needs of Trieste. In fact, as we have already explained, the electricity generated by these power stations, in such periods is not even sufficient for the needs of Trieste inasmuch as the latter must be assisted by the Italian electric system. On the other hand the portion of Venezia Giulia ceded to Yugoslavia can count upon large, even immense water and thermo-electric resources (it is enough to mention that each Yugoslav citizen disposes of an amount of coal 12 times larger than that of the Italian citizen) and in any case can, if desired, continue to be supplied by the Italian system at the conditions and for the time to be agreed upon by the parties concerned.

4. Therefore, should the so-called “Free Territory of Trieste” really be established, Italy, recognising the paramount importance for Trieste and its territory of the power possibilities existing or potentially available on the Middle and Upper Isonzo, would be ready to grant to the “Free Territory of Trieste” as such, the following concessions, which she would be ready to embody in the Treaty.

a. The permanent concession of rights to the waters necessary for the purpose of working existing and future generating stations.

b. The ownership (by the Government of the “Free Territory of Trieste” or by such body as chosen by it) of the generating stations above-mentioned, electric transmission and telephone lines, with the undertaking never to adopt any measure which might alter the full ownership of the above installations and their free working.

c. The full right of transmission and use of the electricity as generated, without imposing on it any payment of taxes or charges of any kind. Italy would likewise in no case forbid, limit or impose any customs or other duties on the importation of materials necessary for the proper working and upkeep of installations.

d. Any other right or faculty necessary for the proper working of the power stations, electric transmission and telephone lines.

5. The Italian Delegation asks, therefore, to be allowed to submit some counter-proposals concerning the text of Annex 9 as proposed by the United States Delegation.

6. Should the Italian proposal for the improvement of the new frontier between Yugoslavia and Italy for the area of the Upper and Middle Isonzo not be accepted, it would in any case be essential for the reasons set forth in the preceding paragraphs, that the aforesaid concessions and facilities should be granted by Yugoslavia to the “Free Territory of Trieste”.

Counter-Proposals Concerning Annex 9 (Territory of Trieste) as Proposed by the United States Delegation

N.B.—The sentences and words underlined in the following paragraphs repeat sentences or words taken from Annex 9, par. c of the United States proposals.

1. The Italian Government will permanently grant the “Free Territory of Trieste” (or such body as is chosen by it):

a. A permanent concession of rights to the waters of the Isonzo and its tributaries north of Salcano (Gorizia) up to the source of the river for the purpose of working existing and future generating stations;

b. The ownership of the Doblari and Plava generating stations of the high tension electric transmission lines Doblari-Trieste (at 130.000 volts) and Plava-Gorizia-Monfalcone-Trieste (at 50.000 volts) and of the telephone lines essential to the proper operation of those power stations. The Italian Government will undertake never to adopt any measure which might alter or modify the full free ownership of the above installations and their free development;

c. The right of transmitting and utilising the electricity generated there, undertaking never to request payment or taxes or charges of any kind for the electricity thus generated. Italy will not in any case forbid, limit or impose taxes of any kind on any material necessary for the proper working and maintenance of these installations;

d. Any other right or faculty which might be deemed necessary for the proper working and maintenance of the said power stations and electric transmission and telephone lines.

2. (See par. C–1 of the United States proposals.)

Yugoslavia-Italy and the “Free Territory of Trieste” shall maintain the existing supply of electricity to the former Italian compartimento of Venezia Giulia furnishing to the Territory such quantities of electricity at such rates of output as the latter may require.

3. (See par. C–2 of the United States proposal.)

The price to be charged by Yugoslavia by Italy or by the “Free Territory of Trieste” to any of the other parties, for the electricity furnished to it, shall be no higher than the price charged in Italy, Yugoslavia or in the “Free Territory of Trieste” for the supply of similar quantities of electricity on the same conditions, and from the same sources of supply in their respective Territories.

4. (See par. C–3 of the United States proposal.)

Yugoslavia, Italy and the Free Territory of Trieste shall exchange information continuously as to the flow and storage of water and the output of electricity in respect of stations supplying now or in future the former Italian compartimento of Venezia Giulia so that each of the parties will be in a position to determine its requirements.

5. (See par. C–4 of the United States proposal.)

Yugoslavia, Italy and the Free Territory of Trieste shall maintain in good and substantial condition all of the electrical plants, transmission lines, sub-stations and other installations which are required for the continued supply of electricity to the former Italian compartimento of Venezia Giulia.

6. (See par. C–5 of the United States proposal.)

The “Free Territory of Trieste” shall ensure that the existing and any future power installations on the Isonzo are operated so as to provide that such supplies of water as Italy may from time to time request may be diverted from the Isonzo for irrigation in the region from Gorizia southwestward and westward to the Adriatic and for the generation of electricity. The “Free Territory of Trieste” shall be obliged to provide only such amounts of water for this purpose as do not substantially exceed past requirements, i.e. approximately 23 cubic meters per second for irrigation purposes and amounts of water not substantially exceeding past requirements for the purpose of generating electricity.

7. (See par. C–6 of the United States proposal.)

Yugoslavia, Italy and the “Free Territory of Trieste” shall, through joint negotiation, adopt a mutually agreeable convention in conformity with the foregoing provisions for the continuing operation of the electricity system which serves the former Italian compartimento of Venezia Giulia. This convention shall be so drawn up as to allow for the possible expansion of the aforesaid electricity system by further hydroelectric developments in the Upper Isonzo by the furnishing of additional supplies of electricity from Northern Italy, or by other means.

8. (See par. C–7 of the United States proposal.)

Under the aforesaid convention, a Commission, or such other instrumentality as may be jointly agreed, shall be established, with headquarters in Trieste and with equal representation for Yugoslavia, Italy and the Free Territory of Trieste. The Commission shall facilitate the execution of the provisions in paragraphs 1 to 6 above, and those adopted by the same convention, and shall supervise and coordinate the operation and future development of the electricity system.

9. Arbitration clause. In case of disagreements on the meaning of the clauses of this Annex or of the convention mentioned in paragraph 8, the three Governments of Yugoslavia, Italy and the “Free Territory of Trieste” will refer to the arbitration of the President of the Swiss Association of Engineers and Architects of Zurich, or of a person nominated by him, and will submit loyally to the result of that arbitration as its decision will be final (or see Art. 72 proposed by the United States Delegation).