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United States Department of State / Foreign relations of the United States diplomatic papers, 1937. The British Commonwealth, Europe, Near East and Africa
(1937)

Italy,   pp. 435-506 PDF (27.1 MB)


Page 485


  Article 6. The Italian authorities state that although further ef-
forts have been made to reconcile the Department's proposal (De-
partment's No. 189, of December 6, 7 p. m.) with the provisions of
Italian law it has not been possible to harmonize the two divergent
systems of nationality. They state, however, that they might be pre-
pared to consider separate and subsequent negotiations on this ques-
tion. In the meanwhile they propose to omit article 6 from the pres-
ent treaty.
  Article 8. The Italian officials accept substantially the Depart-
ment's interpretation of article 8. A memorandum to this effect is
being forwarded by pouch which reads in part as follows:
  "The interpretation of paragraph 3 is accepted and as far as Italy
is concerned the 'representative period' will be 1934.
  Paragraph 4, sub-paragraph (a) accepted.
  The wording of the first sentence of the interpretation of paragraph
4 (b) is accepted. The official Italian quotation of the dollar is on a
par with the unrestricted Italian lira quotation in New York and cor-
responds thereto, save for negligible variations in lira quotations on
various world markets. However, the example which follows said
first sentence does not appear to accord with the preceding assump-
tion in view of the fact that since an exchange monopoly exists in
Italy private individuals may apply only for the foreign currency in
which the debt to be paid has been stipulated, and not a third currency
which the interested party may negotiate in a third country to obtain
therefrom the exchange actually required for the payment.
  It should be further noted that it would be inaccurate in any case
to extend this example to compensation currencies inasmuch as in
the first place these are definitely restricted for use in payments ex-
pressly contemplated in clearing agreements and inasmuch as com-
pensation currencies are as a rule determined with a certain precision
by agreement between the two clearing institutes responsible for the
operation of the respective accords and may therefore be temporarily
more susceptible of a certain appreciable discrepancy in relation to
the quotations of unrestricted exchanges".
  Article 19. The Department's addition concerning "neutrality"
is
acceptable in principle to the Italian authorities. Inasmuch as Italy
has no neutrality law the Italians desire to reserve the right to modify
or suspend on a reciprocal basis those provisions which might be af-
fected by the application on the part of the United States of neu-
trality measures. Accordingly, they propose the following formula to
-be added at the end of the first paragraph of this article:
  "In the event that one of the High Contracting Parties should ap-
ply measures relating to neutrality which modify or suspend in whole
or in part any of the provisions of this treaty; it is further agreed
that the other High Contracting Party upon a reciprocal basis may
likewise modify or suspend the obligations assumed in the said pro.
visions".
485
ITALY


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