S/PV.346 Security Council

The meeting will adjourn until 3.30 p.m. The meeting rose at 1.30 p.m. THREE HUNDRED AND fORTY-SIXTH MEETING (Union Argentine, Fr2l1ce, d'Ukraine, soviétiques, rique. Held at Lake Success, New York, on ThursdaY3 12 August 1948, at 2.30 p.m. . President: Mr. J. MAUK (Union of Soviet Socialist Republics) .. Present: The representatives of the following countries: Argentina, Belgium, Canada, China, Colambia, France, Syria, Ukrainian Soviet Socialist· Republic, Union of Soviet Socialist Republics, United Kingdom, Unittd States of America. The' agenda was that of the 345th meeting (S/Agenda 345/Rev.l). ,l'S. Continuation of the discussion on the Trieste question 195. , At the invitation of the Presid.mt, Mr. Vilfan, the representative of Yugoslavia, took his plac at the Security Council table. Sir Alexander CADOGAN (United Kingdom): In his speech at the fimt meeting [334th meeting] at which the Securlty CounciI dealt with this , subject; the representative of Yugoslavia based his charges against my Government and the Govemment of the United States on artic1e 21 of the Peace Treaty with Italy and on certain articles of Annex VI of that Treaty, which contains' the Permanent Statute for the Free Territory of Trieste. il . 1 should like to begin by reminding ,the Secur- ity CouncM. of the conditions in ,which the. provi- sions in that Treaty re1ating ta the Free Territory become appJ... :"oble. There can be no doubt that article 21 of the Peace Treaty is a~ present in force. Its third paragraph reads as follows: "On the termination of Italian sovereignty, the Free Territory of Trieste shall be governed in accordance with an instrument. for a provi- sional regime drafted by the Council of Foreign Ministers and approved by the Security Council. This Instrument shall remainin-:force until such date as the SecUrity Council shall fix for the coming into force of the Permanent Statute which shall have been approved by it. The Free Terri- tory shaUhenceforth be governed by the pro- visions of suchPermanent Statute." présenta:tit table . (traduit sécurité slavie contre le 'sations de l'Annexe Hermanent toire condition~ lement 'provisoire, " No date for 'the entry. into force of the Per- manentStatute has .yet been fixed by the Security Council, and the'Permam:nt Statute is therefore in force at present only in so far as it is applicable So much. for the articles of Annex VI. As regards article 21 of the Peace Treaty, :tt will he seen from paragraph 3, whièh 1 have llIlready read, that the Provislonai Regime contaiued in Annex VII of the Peace Treaty has been in force sinee 15 September 1947. How(;ver, 1 would invite members of the Security Council to examine all the articles of Annex VII - that Îll, of th~ Instrument for the Provisional Regime. They will :find that articles 3, 4, 5 (b) and (c), 6, 7, 8 and 9 all regulate the conduct of the Gover- nor of the Free Territory after bis assumption of office. It is well known that no Governor has ytt been appointed. These articleS, therefore, though in force, cannot have applica~on now. The only articles of Annex VII which can be said to be applicable at present are article 1, a part of article 2, 5 (a) and the :first sentence of articles 10 and Il. Of these, article 1, which states that "Pending assumption of office by the Governor, the Free Territory shall continue to be admin- istered by Allied inilitary commands within their respective zones,n is the article which ischiefly relevant to .the present issue. From it the military commands draw their present authority in the zones. 1 need hard1y say that the United Kingdom a.."ld the United States authorities in their zone have had the terms of the Permanent Statute and the Instrument of the Provisional Regime mways in mind; and where there was.a choice between two polides, one of which was in accord with the spirit of these Instruments and another which was Ilot, the Allie.d Military Government would, other considerationsbeing equal,choose the .first. But my poip,tis-' and 1 harilly think that on investigation of, these articles anyOne, can disagreewiUt it.-·that only the Instrument for the Provisional· Regime, Annex VII of the Peace Treaty, is at present in force and only the . articles R.'1d parts of articles of it which.1 have enumerated can in ,the present·siL"',\tion have any application. , The AlliedMilitary Gove~ent hasscrupu- lùùsly obserred,·to the best .of itsabiHty, the pro- visions of these articles. As 1 said' atthe 344th . meePng of the Security Council, article I1stipu- lates th.at Italy and the Free Territory shall enter " From 1he practical point of view, it was vitally necessary to the economy of the United, States- United Kingdom zone that the currency in use should be fully acceptable. The Allied Military Government, finding itself still in office after four or five months,:had no choice but to implement the Peace Treat"! by reaching agreement witl} the Italian Government, in accordance with article Il of the Il'lstrument for the Provisional Regime, for the provision of lira and foreign ex,cha~ge. Rad the Allied Military Government chosen to create an artificial currency and cu~­ toms barrier between their zone and Italy - both territories in which lira currency was to circulate - sûch a course would not only have been contrary to the Peace Treaty, but woukl have meant in praetice unnecessary formalities and the obstruction of tra.de. Rad the Allied Military Government divorced the lira in their zone from that cireulating in Italy by creating a cm;rency and customs barrier, it is not difficult to see that the lira in their zone would soon have assumed a different meaning and value from that of the metropolitan lira in Italy. The Yugoslav note of 28 July [8(927] sug- gests that such agreement should have heen ,concluded on behalf of the whole Free Territory and not just of the United States - United King- dom zone. But the point is that if the Yugoslav administration had implemented the Treaty'by adopting the Italian metropolitan lira as the currency in its zone, then there wowd have been no opjection to its conc1uding similar agreements with the Italian Government. The whole Terri- tory wouldthus have benefited from the actions of the 'two military commands within their re- spective zones, and article Il of AnnexVII would have been fully implemented durmg the interini period envisaged by article 1. But, in faet, the Yugoslav military administration had introduced, even 'before the Treaty came intn force, an entirely unauthorizea. currency known as' the YugoHra at a comim};mry,and arbitrary exchange value, 1 understand, of three Italian lire to one 'l'Admitùstration yougoslave a The four financial agreements to which the Yugoslav representative has objected, that is to say, the three agreements of 9 M:u-ch and the agreement of 6 May, have done nothing more than carry to its logical conclusion the stipulation in the Peace Treaty that lira currency shalI con· tinue to be used until a separate currency is insti· tuted and that the foreign exchange requirt~.. ments of the Free Territory shalI he provided by Italy. But even Ü· alI these considerations which we have advanced were ,to be disregarded and it were to be argued, as the Yugoslav representative has argued, that the action of the Allied Military Government threatens the int~grity and inde- pendence of the Free Territory, 1 should like to draw the attention of the Security Couneil to one fundamentai and undev..iable facto l'hat faet is that all these agI'cements are by their very nature tempClrary since they apply only to the period during which the lira is the official cur- rency of the Free Territory. They are for the convenience and, indeed, the vital necessities of the zone. There is nothing in them of a permanent nature and nothing that' cannot be abroga\.~d when the Allied Military Government is replaced by the succeeding Goveinment. If the Governor were elected by the Security Council and were to assume office, the Allied Military Government could hand over its zone without having in ~y way prejudiced the future of the Tèrritory<under the Peace Treaty as regards the institution of a new currency regime. The orly matter in which, under the present . agreements, the Allied Military Government would leave a commitment to a successor Goverp.- ment is the arrangement in article 5 of the second agreement of 9 March, by which·the final settIe- ment of the financi~gof the Zone is to be decided between Italy and the ultimate Government of the Territory. The Yugoslav representative bas sug- gestecl [8/927] t'hat the Treaty has beenviolated because é!- "debtor relationship" betwèen the zone and the Italian GoverIiment has been al1Qwed to come into existence. The Yugoslav Government's note, of 28 JuIy suggests that the Vnited States and the United Kingdom should themselves have found the finances which the zQne neèaerl. Members of the Security Council' will have no difficulty in.imagining the charges of "Anglo-Aniericanimperialisnl" and "dollar diplomacy" which ·wouId have been 'hurled at 1 must emphasize once again that except for this h~~vitable debt commitment, the Allied Military Government has only contracted agree- ment in regard ta finance, currency and foreign exchange ta be effective during its term of office, or pending the establishment of a new currency. Let us examine the comments cont~ùned in . t,he Yugoslav note of 28 July upon the individual agreements. What 1 havê just said about the debtor relationship between the United States- United Kingdom zone and Italy constitutes iii. reply ta the Yugoslav charge with regard ta the agreement of 9 March, No. 2 in the Yugoslav note. If we take the fust and third agreements, dealing with the supply of currency and foreign . exchange respectively, we shall llote that they implement closely the wording of article Il of the Instrument for the Provisionai Regi."Ile. The Yugoslav note criticizes the currency agreement on the groUnd that the Allied Military Govern- ment has. lmdertaken to confonn ta Italiait control hi the matter of cireulation of the lira. As regards the foreign exchange agreement, the Yugoslav note complains that the AlIied Military Government has undertaken ta conform to the Italian exchantse control regulations. Far from constituting the subservience of the Allied Mill- tary Governnientto the Italian Government,such arrangements ensure the strength and accepta- bility of the lira in circulation in the. zone. Such arrangements can oru.y conduce tothe econQmic advantage of the zone. One cannat have the lira The Yugoslav note contains aIso the charge • that the agreements constitute a breach of article 24" paragraph4, of the Permanent Statute. In this respect, 1 would recall that under article 1 of the Instrument for the Provisional Regime, the Allied Military Govemment has authority to administer the zone in accordance with those provisions of the P~anent Statute which have proved to be applicable under article 2 of the Instrv.ment for the Provisional Regime and with those provisions only. Now while these measures c1early do not constitute economic union with Italy, the continuance in use of the Italian lira in the Free Territory. pending the establishment of a separate monetary system contemplated by the Permanent Statute, must entail an association with Italy of an exclusive character. Therefore, article 24, paragraph 4, of the Permanent Statutecannot be regarded as applicable at pres- ent but must be subordinated to article Il of the Instrument for tlle Provisional Regime, supersed· ing i~ in this respect only when a separate mone· tary system has been established, in accordance with article 30 of the Permanent Statute. agr~ement. In this matter, as in others, the Allied Military Government has been scrupulous to maintain the principle of the independence of the' zones. 't~en asked to explain its conduct before the' Co;tlt'cil. Explanation would have been required had it,. for example, been responsible for whole- sale e>'.propriation of property without compen- satiol'. anç! the reorganization without proper authorityof the processes of law. But the Allied Military Government has not been guilty ofinsti- tuting such ~easures. On the other hand, these are ID fact measures which have been effected in the Yugoslav zone. In its note of 12 April [S/944], recently circu- .lated to the Council, the Yugoslav Government makes the excuse that it found that these changes had taken place befoie the Yugoslav military administration took over. This is not correct. Two of the measurès to which 1 refer are orders ' of "thè Executive PeoJ?le's District Committee of Capodistria" of 4 September 1946 and an order of "the Regional feople's Committee for .Istria" of 25 November 1946. If an attempt is made to excuse the military administration in the Yugoslav zone for action which took :,lace in 1946 by stàting that thePeace Treaty was not then in force, 1 woùld 'refer to the provisions of section III of the Hague Convention of 1907 which is declaratory of internationallaw regard- ing military occupation. Article 43 of the Con- vention states: ."The authority of the legitimate Power having in fact passed into the harids of the occupant, the latter shall take all the measures in bis power' to restore and ensure, as far as possi~le, public order and safèty, while respecting, unless 'abso- . lutely prevented,the laws in force in the country." ln this connexion, 1 should like to read the following quotations concerning the Yugoslav Minister of the Interior who, we understand, has certain responsibility for the police in" the Yugoslav zone. These are the quotations. "The Party has been placed under the super- vision of a man who, combining the posts of Minister of State, Security and Organizing Sec- retary of the CentraI Committee of the Com- muni.<:t Party, is making wide use of police met~ods in internaI Party affaïrs." The other quotation is: "This system Qf terrorism and repression is evidence that the leaders of the Communist Party of Yugoslavia have embarked on a path of adopting fascist methods." These ql!otations are from an article which appeared on 25 July in an the principal news- papers in the'USSR. .. It was conditions of the kind to which 1 have referred in the Yugoslav ZOI1f: of the Free Terri- tory which caused the United Kingdom Govern- m.ent, togetherwith the United States and F'rench Govemments, to declare their view on 20 Maî'ch [8/707] that the FreeTerritory should retum ta Italy since the séttIement prescribed in the Peace Treaty had been rendered unwork- able by the policy of the YugoslavGovemment in ~ts zone. Nevertheless, the Allied Military Govemment has been careful to donothing in .its zone which would prejudice the Peace Treaty settiement, since it is perfectIy aWare that the Peace .. Treaty isbinding until it has beeIi formallyaltered by the Powers concerned. As 1 think is well-known, my Govemment and the Govemments of the United States and France still await à reply to their latest note to the Union ,of Soviet ~ociaIist Republicson ~is subject. .Républiques The United Kingdom representative is fully aware that questions' of this kind are not within the comp,etence of the Security Council, yet he endeavours to bring them up in the Council. His attempts to doso are nothing more than a trick ta divert the Counci,l's attentibn from the substance of the question under diséussion. He had recourse to similar tactics at the last meeting, tao, and he is continuing to use them now. He will certainly not succeed in making the Council follow such a line of action. The Council will examine the substance of the question of the violation orthe Peace Treaty provisions concern- ing the Free Territory of Trieste by the "Q'nited States ~d United Kingdom Governments, in spite of his attempts to distract its attention. The examination by the 'Security Council of. the .complaint raised by the Govemment of the Federal' People's Republic of Yugoslavia on the violation by the United States and the United Kingdom GovernmentS of the terros of the Peace Treaty with Italy concerning the Free Territory of Trieste, and the position takenby 'the United States, the United Kingdom and France in the Security Council on·the question of the appoint- . ment of a Governor for the Free,Territory of Trieste, as weil as certain actions of the Govern- ments of these three countries during the past few months in regard ta Trieste, point to the fact that the United States, .the United Kingdom and France seek to violate the terros of the Peace. Treaty with Italy and the separate agreements on Trieste, and,to p,revent the implementation of the Treaty and of those decisions. The United States and the United Kingdom have several times recentIy violated or failed to'Comply with .their obligations under these agreements or have endeavoured to by-pass them; designatio~ of the Governor of the Free Terri- tory of Trieste at the earlicst possible date under the conditions ~aid down in the draft Permanent Statute so as,ta ensure bis appointment by the Security Council simultàneously with the entry into force of the,Peace Treaty." Inaccordance with t:his decision of the Council of Foreign Ministcrs, the following special article lIon the appointmentof a Governor was includedin Annex- VI of the Peace Treaty with Italy: . "The Governor shall be appointed by' the, Security Council after consultation with the Governments of Yugoslavia and Itàly." Under the agreement reached by the Coùucil of Foreign Ministers and under the terms of the Peace Treaty with Italy, the four Govemments therefore undertook to nominate a candidate for the post of Governor of the Free T~rritory of Trieste as,soon as possible. The Peace Treaty with Italy came into force on 15 September 1947, and Italian sovereigrity over the area which forms the Free Territory of Trieste ceased on that day. The question of the appointment of Governor, however,' is still in abéyance. The Security Council began the consideration of this question on 20 June 1947 [143rd meet- ing], that is, over a year ago. A sufficient number of suitable candidates has been suggested since then, and with alittle good will and a, sincere desire çn 'the part of,the Uni,ted States, United Kingdom and French delegations, a suitable .candidate for the post of .Governor of the ;Free Territory of Trieste could have been selected long since. The discussion in the Security Council of the appointment of a Governor for the Free Terri- tory of Trieste has shown, however, that the United States, United Kingdom, and French delegations are not fulfilling their Governments' obligations under the agreement of the Council ~of Foreign ,Ministers of 12 December 1946 and the Peace Treaty with Italy, but are doing their utmost to delay thesettlement of the question As to the French representative, he stated in regard to the candidate for the post of Governor putforward earlier by his Govermhent that he did not know what his Government's position was in regard to that candidate, adding that it was q,uite possible that the French Govemment ,might prefer somebody else for the post. Thus the French representative in effect rejected the candidate put{orward earlier by his own Govern- ment, at the same time failing to namea possible new ~:andidate acceptable ta it. Nor did. he suppo:rt any of the candidates proposed by other delegations. The note indicates aIso that during the discus~ sion bf the Peace Treaty with Italy in the Council of Foreign Ministers the three .Government& favoured the transfer of Trieste to Italy. Why these historical reminiscences? Because some sort of justification at any rate was required for the violation of their own obligatiofl.s both in regard to the agreement reached in the Council of For- eign Ministers and those they had assumed under the Peace Treaty with Italy - a treatyaccepted by the Paris Peace Conferen,ce and signed later by the twenty·one nations taking part ID the Conference. The ink was hardly dry on that document, which marked the official entry into force of the Treaty, bef6re the three aforemen- tioned Governments began their preparations to violate and revise' it. . AIl this ~ a clear illustration of how cavalierly the Govemments of certain countries deal with international agreeII}ents and treaties and with their own obligations under these treaties. In arder to promote their own n"arrow selfish politi- cal interests the Governments of certain States do not hesitate to violate an international treaty ~d the obligations arising out of it. .That the United States, United Kingdom and French Governments tried to use the Trieste question solely for their own narrow, selfish political purposes is borne out by the fact that . the joint note .on the transfer to Italy of the Free Territory of '!;rieste was sent, by these Goverhrnents to the Government of the Union of Soviet Socialist Republics and was published and widely advertised in the Press at the very moment of the election campaign in Italy. It is no secret that these 'Governments, ,and particu- larly the Government of the United States of America, used fue Trieste question during the Italian. election campaign as a political lever for purposes .having nothing in common with the strengthening of respect for the existing agree- ments and treaties, for fue fulfilment of obliga- tions under those treatie~, and for the mainte- nance of peace and security. This open and gross interference of certain foreign Powersin theItalian elections is still fresh in our memories. The sending of aircraft carriers, The USSR Govetnment hi its note of 13 April, presented by its Ambassador to London in repIy ta the British Foreign Office's note of 20 March, which contained the joint proposal on Trieste of the three Govemments, stated: "The 30~iet Government ,of the Union of Sùviet SocialiSt RepublicS at the same time draws the Foreign ûffice's attention to the fact that the Peace Treaty with Italy, as with the other States which took part in the war, was dra':VIl up by the Council of Foreign Ministers, was considered in detail at the Paris Pèace, Conference by the twenty..:one, nations which subsequently signed and ratified it, and came into, force only a few months ago. "It is therefore cIear that the Government of the UIÎion of Soviet Socialist Republics must consider any proposal to revise any part of the Peace Treaty with Italy either by correspond- encc or at private meetings inadmissible, as.being contraI') to the elementary principles of democracy." Such is the USSR GovemmenÙ position; a position of respect for existing ;"temational treaties and agreem' ~Lts an' of strkt fulfilment of obligations undel' such treaties and agree- ments. 1-have dwelt at so:rpe length on this question in order to demonstrate that'the Governments of the United States of America, the,UnitedKmg- dom and France have for a long time be~n. vio- Iating ,the Peace Treaty with Italy and endeavouring torevise that Treaty..Itis there- fore notsurprising that the Anglo-American military commandersin the .. Unit~d. States- î gè>res ~change for the United States - United King~ dom zone. 2. Conclusion of a postal agreement between the United States - United Kingdom Conunand and the Government of .Italy. As a result·of those agreerp.ents, the United States ~.United Kingdom zone' of Trieste is financially placed under the full control of the Italian Government and the Bank of Italy. The bank notes of the Bank..oU.t!\ly and Italian State bonds are permitted to circulate freelY1iïl:1œ-,t-lJm:llqUe.. territory of the zone without any restriction or reglliation whatsoever. The financial frontier between ltaly .proper and the .. United States.. United Kingdom zone is removed. As far as the movement of currency isconcer"'ed, the zone is wholly incorporated iIito the Itè4..ai"l State. The Trieste branch of the Bank of Italy will in actua! fact contrql currency circulation and finance within the zone. .The Command of the zone undertakes to enforce on the territory .of the zoneall Italian rules and regulations on currency and to take no steps against the implementation of those reguladons. Thus, as far as finance is cohcerned~ the United States - United Kingdom zone of the Free Territoryof Trieste is placed·under Italian .sovereignty and all rules, hi,ws and dëcrees of the The financial agreement provides that the Italian Goveroment will finance the United States .. United Kingdom 'zone, which means in fact that it is given full control of the finances of the zone and put.s not only that zone but the whole territory of Trieste in Italy's debt, inasmuch as under the obligations which may arise as a result of the implementation of this agreement, .the Govemment of the Free Territory of Trieste will in future have to draw on the economic resources not ouIy of the U.nited States ~ United Kingdom zone but of the' whole Free Territory so as to pay its debts. The agreement is a one~ sided deal which conderons the Free Territory from the start to a state of indebtedness to Italy and witbholds from it its economic, and conse- quently its political, liberty. By acting in this l'mmner' and concluding sucb agreements, the 'UDjited States - United Kingdom Military Command not·only exceeds its powers but aIso enforces upon the future Govemment of the Free Territory of Trieste burdensome obligations, burdensome if ouIy' because the final character of tl\ose obligations is not yet defined and will eventuaUy depend on the arhitrary movesof the United States ~ United Kingdom Command and the Italian authorities. Sucb agreements cause direct and immediate harm to the principle of the integrity and inde- pendence of the Free Territory of Trieste estabR Iished under article 21 of the Peace Treaty with Italy. The, third agreement on the' provision of foreign exchange for the zone giVês the ItaIian Government the right to control the entry of foreign, currencyinto .the zone.and .provjdes .for fue'app1Îéatiohof aIl It-amm laws, decrees and regulations on foreign exchange control in the; zone and aIso places all entries of foreign currency in the ltalian Government's controk The Yugoslav Government's note also' points out that an agreement wasconcluded between the United Statel3 - United Kingdom Command and the Gove:rnment of Italy on 6 May 1948 .regarding the implementation of the three afore- said agreements..:Under the n,ewagreement, aIl existing.,tradeandpayment agreements between Italy and other nations are considered te be extended totheUnited.States .. United Kingdom zone as well. The Yugoslav note also states that on 24 April of this year the Italian Ministl)' of Finance issued an announcement according ta wmch no custoros barrier any longer existed between the zone and Italy, !hat therefore no obstacle existed for the exchange of goods, and that the rights of the custom house in Trieste were considered equal for bath import and export to those of any other Italian custom house. This decree was later con- firmed by the above-mentioned agreement of 6 May under which the United States - United Kingdom zone of Trieste became entirely dependent on the Italian Ministry of Foreign Trade in respect of mattcrs conne'cted with the import of goods. The Ministry is authorized to regulate, approve and confirm all purchases mape abroad for the zone, and the military command of the zone assumes the obligation of issuing import and export licences only with the consent of the Italian trade representative in Trieste. The agreement further extends fi number of Italian laws and regulations regarding export ta embrace territory of the zone. In the postal agreement concluded between . the United States - United Kingdom Commanrl and the Govemment of Italy, the UnitedStates • United Kingdom zone is subordinated to Italy as far as postal exchange is concemed and is to be represented by Italy in all relations with other States. Italy is to regulate the settlement of accoiuits of the United States - United Kingdom zone as regards postal exchange with other States. The conclusion of those agreements and the dépendence of the finandal, ,foreign currency, trade and postal activities of the United States- ,United Kingdom zone of the Free Territory of Trieste on It~y constitute a direct violation of thèterms of the Italian Peace Treaty, which provides, in' the first place, for the integrity and independence of the Free Territory of Trieste, and, in the second place, that aÎl economic union or associations of an exclusive character with any State ,areincompatibJe with the status of the Free Terri,tory. Such actions of the United States - United Kingdom Command, approved by the' Governments of the United States of America and the United Kingdom, are also in flagrant violation of the decision of the Council of Foreign Ministers of 22 April 1947, whichwas based upon the report of the Trieste Commission of Inquiry [SI577J. A.'1:icle 1 of the decision of the Council ôf Foreign Ministers provides that in the ,solution of the questions of the budget, bal- By circumventing and violating this dccision of the Couneil of Foreign Ministers, and in par- ticular, article 3 which provides for financlal assistance for the Free Territory out of the United Nations' resources upon recommendation of the Security Couneil, the Government of the United States of America has unilaterally incor- porated the Free Territory of Trieste in the so- called "Marshallised" countries of Europe. This is evident from the latest official report of the United States - United Kingdom Command in Trieste .which' states: "It has recentIy been announced that the United States - United King- dom zone is to participate in the European Recovery Programme." The decision of the Council of F-oreign Minis- ters of 22 April 1947 aIso states the amount up to which financial assistance may be given to the Free Territory of Trieste from the resources of the United Nations: This amount is fixed at 5 million dollars. The· Government )f the United States has violated the decision of the Council of Foreign Ministers and the obligations it assum:ed under it, and is unilaterally extending the scope of the Marshall PJan to cover the Free Territory of Trieste, instead of being guided by that decision. By virtually handing over the zone of the Free Territory of Trieste to Italy and by tying it to that country economically and fillancially, the United States - United Kingdom Command is isolating 'the zone from the remainder of the Free Territory' of Trieste and' from the outside world, prohibiting the.conclusion of trade agree- lllents,particularly between the zone a.'ld Yugc;;. slavia. This is admitted by the United States- United Kingdom Command of the zone itself. . 1 The officiaI report concerning the ac1IniPJstra- tion of the zone for theperiod from 1 January to 31 March 1948 [8/781], drawn up by General Airey,. gives a. very detailed account of the strengthening of economic and other ties between ~e zoneàfid Italy, of the increased volume of current inter-governmentaI affairs, of the conclu- sion of various agreements, and the.like; whereas the section entitled "Relations with Yugoslavia" (secti01l4, paragraph 2, page 9) states that propos?~ which had been made by the Yugoslav Economie'Mission in Trieste in February 1948, wi'th respect to. trade relations .between the' AlI this makes it amply clear that the United States - United Kingdom administration of the Free Territory of Trieste, having in effect placed its zone under Italian control as far as finance, economics, currency and trade are concerned, at the same time will not, in actual fact, author- ize the conclusio:1 of a trade agreement with the other part 'of.the Free Territory of Trieste, that is, the zone under the adnùnistrauon of Yugo- slav authorities. This also constitutes a grass violation of the aforesaid decision of the Council of Foreign Ministers, article::' of which provides . for the import of Italian and Yugoslav goods into the Free Territory of Trieste duty free il those countries accept imports from the Free Territory on the same conditions. In his speech today t345th meeti~g], the repre- sentative of the United States of America referred to the samearticle 2 of the decision of the Collo- cil of Foreign Ministers, bu.t he did not mention the equal right to import goods of Italian' and Yugoslav origin into the Free Territory of Trieste. Thus, violating the Italian Peace Treaty and the decision of the Council of Foreign Ministers of 22 April 1947, the United States - United Kingdom Command of the Free Territory is repeating in Trieste the policy of the United States - United Kingdom Command in Germany, dividing the latter into two parts; in violation of· the Potsdam Agreement, and turning the western part of Geimany into the notorious "Bizonia". The United States - United Kingdom Comma'ndin ,. Trieste is creating its owh "BizQnia", breaking up the' unity of the lfree Territory of Trieste and handing over this Triestine "Bizonia" to ..the 'Italian Government, and ~ontinuing to occupy it with its armeù forces. It should also be noted that the dismember- ment of the Free Territory of Trieste and the financial and economicunion of the United States - United Kingdom zone with Italy iscar- ried out by the United States - United :Kingdom Military Coinmand not.oruy by means of the aforesaid agreements, but also by means of day- to-day administrative measures. Another fact worthy of attention is that the second of June, the national Italian holiday commemorating the establishment of the' Italian Republic, hasbeen Attempts are being made.here to justify sucb arbitrary and illegal actions of the United States .. United Kingdom Command by referring ta article Il of Annex VII of the Italian Peace Treaty. That m-ticle, as we know, provides that the Italian lira will continue to be the legld tender within the Free Territory of Trieste pend- ing the establishment of a separate currency and financial regime in the Free Territory.· But the main point of that article.is not so mucb the circulation of the lira as the fact that the Free Territory is to have its own separate, independent currency and financial regime, the circulation of tlie lira as legal tender being merely a temporary and transitional measure. Obviously llQ, one wow.d abject if the usual agreements had been concludedbetween the Govemment of Italy and the administration of the Free Territo,ry of Trieste with a view to the implementation .of article Il as. regards the financial exchange between the Territory and Italy. ne conclusion.ofsuch agreements would be in accordance with the spfritand the letter'of the Italian Peace Treaty, since such agreements must in no way prejudice, much less violate, the principle of the integrity,and political and eco- nomie iudependence of the Free Territory of Trieste. The.United States- United Kingdom Command, llowever, interpreting article, Il in its, own way and shielding itseH behind it, is concludfug financial, customs, and other agree- ments with the Italian Govemment for which it has.no legal right or justification and whichare not only detrimental tothe integrity ~d inde- pendence'of the Free Terri.tory, but alsoin direct violation of both the Italian Peace Treaty and the decision 'of the Couneil of Foreign Ministers on Trieste. The representative of the United States'of America attempted .at the last meeting of the SecurityCouncil to rejectthe accusations of the Vûgoslav Government, without quotingany facts or ,. reaso~J,c!~!J:'ictiJ:Ig~~ltt~L pg~_,g~~e!'é1l, sta:temëriflhii die UîùtecÏ States -United King- dom, Command were carrying" out ,the ,admini- strationofthe zoneÎIlaccorciance withthe spirit andthelett~r of. the PeaceTreaty with ItalY and thenorms ofinte;"1~tionallaw concemmg the conduet ofmilita1yadministration, in an ocçupied territory. The facts Fhave adduced regarding iliepositionwhichthe United States and the' United Kingdom deIêgations' have adoptedinthe SecurityCouncil 'in connexion with thè appointment of a.Governor for the Free , Territory of Trieste;theattetnpts'of the'Govem- ments oftllesenations and ofFrancetohave the ~talian 'Peace'I'reaty revised; the actions, fina11y, of the United State's-.UnitedKIDgdomCom., .mand'in Trieste, as givenin th.e Yugoslav note, Until the Italian Peace Treaty came into force, the United States - United Kingdom Command administered the zon.e of the Free Territory of Trieste as an occupied enemy terri- tory. Howev~r, since 15 September 1947, the date on' which th~ ,Treaty became effective, the United States - United Kingdom Command has had no right nor legal justification to be guided by any kind of "norms" applica:ble to ;the govern- ment of occupied enemy territories. It·is under the obligation togovern the zone in accordance with ~e Instrument for a Provisional Regime of .d'ùn ,conformément th~Free Territory of Trieste, whkh came intq force on 15 September 1947. ÂJ!, from that date, the Free Territory of Trieste is no longer an occu- pied enemy terrîtory but a special international territory with a recognized free' status, "and,the Security Council is under the obligation to ensUre its territorial integrity and independence. The United States repr.esentative, as an international law expert, is perfectly aware of aU this; never- theless he himself adroits, in bis statement, that the. United States - United Kingdom Command isadministermg the zone accordil'lg to standards applicable to an ocèupied e1'1emy territory. li this is the case - and we cannat doubt it,'since the United States representative himself asserts it- then such methods of administration of the zone are in themselves agross violation of the terms of the Italian'Peace Tteaty. In the light of these considerations it must be admitted that Yugoslavia acted rightly in bringing before L\e Security Council its charges that the United States and United Kingdom Governments are. violating their obligations under the ItalianPeace Treaty as' regards the Free Territory of Trieste, and in drawing the Security Council's, attention to the inadmissible character of such actions on the part of the Governments of the United States and the United Kingdom. . . The USSR delegation considers that, in thé .interests of achieving the speediest possible solu- tion of the situation which has been created in regard. to the Free Territory of Trieste, the Secùrity Council should carefully examine this question, take steps to ensure the immetliate appointment of ~ Govemor for the Terr-itory, and also satisfy the Yugoslav demands. In consequence, the USSR delegation, upon instructions from its Government, urges that the GovernmentsOf the United States, the United Kingdom and F~ance and their delega-. tions in the Security Council, should carry out the decisions of the Council of Foreign Ministers of 12 pecember 1946 concerning.the appoint- ment of a Governor for Trieste. The USSR delegation supports, iurthermore, the demand in the Yugoslav note [8/927], that the UnitedStates· and United Kingùom Govern;. ments should terminate the activities of the United States - United Kingdom Command in Trieste, which violate the Italian Peace Treaty and the decisions adopted by the Council of Foreign Ministers on 22 April 1947 guarantee- ingthe economic independence of the Free Terri- tory of Trieste. In viewof the 'late'hour, ·1 wish to ask the French and Belgian representatives whether they would have any objectionif the French interpre- tati6n were deferred to the 'next meeting. ., ,.... , , tariat tation représentants aura L'ordre Jeudi réunira rapport.